July 28, 2008

The market price of South Korea's domestic cattle has dropped dramatically due to imports of low-price US beef.

Average heifer price has plunged nearly 40 percent to KRW 1.4 million (US$1,392) from KRW 2.25 million (US$2,237) last year, according to the National Agriculture Cooperative Federation.

Last month, the government announced a package of plans to support the livestock industry to prevent the price of calves from falling below KRW 1.65 million (US$1,641).

South Korea's agriculture ministry said the government will start its KRW 26 billion (US$25.8 million) relief fund to farmers probably in September.

However, farmers are urging for immediate support as September will be too late for them.

Rising grain price, declining cattle price and falling consumption of beef in the market are hurting the farmers, said Hwang Yop, director of the Hanwoo Board.

More than 4,200 tonnes of US boneless beef are expected to clear the quarantine inspection at the end of the month, with ribs and other bone-in cuts of US beef set to arrive in South Korea next week.