August 17, 2007

South Korea's US beef purchase slows down

US beef shipments in South Korea are dwindling following the government's decision to suspend quarantine inspections.

According to the Korea Herald, quarantine suspension follows a series of problems with US beef imports. The quarantine also indicates the improving sentiment of local consumers regarding US beef is under threat.

The Korea Economic Daily reports US beef sales have dropped 10 percent since the freeze on inspections, compared with the first week of availability. In contrast, sales of Australian beef are benefiting from the ban - surging more than 20 percent over the same period.

There has been no timetable given for the resumption of inspections, and unless new US beef shipments are released, retailers are expected to run out of US stock within 10 days. It is expected that Australian beef sales will continue to increase, as US stocks are run down.

The slowdown in demand could indicate that consumer curiosity and enthusiasm for US beef has weakened compared with the first days of its availability. The recent discovery of banned bone material and the government's move to cease inspections has not helped the overall perception of US beef.