August 18, 2004

 

New Zealand Beef To Remain Strong In South Korea

New Zealand expects its share of the South Korean beef market to remain strong even if North America resumes exports, says the Korean representative for Meat and Wool New Zealand, Yi Gun-hee.

 

New Zealand's market share jumped from 8 to 40 per cent since South Korea banned Canadian and US beef over concerns about mad cow disease late last year.

 

Although a return of North American beef would again cut into market share, Yi said New Zealand believed it would find a new market in consumers looking for competitively priced and low-fat beef products.

 

"We see about 15 per cent market share even if the local beef demand falls, and the US resumes exports to Korea."

 

South Korea imported 88,190 tons of chilled and frozen beef between January and July this year. Almost 60 per cent came from Australia, about 40 per cent from New Zealand and 0.3 per cent from Mexico.

 

In the last full year, South Korea imported 300,000 tons of beef.  70 per cent of the beef come from the US, 20 per cent from Australia, 8 per cent from New Zealand and 2 per cent from Canada.

 

South Korea had banned Canadian beef imports after the outbreak of mad cow disease in Canada in May 2003.

 

Seoul then banned imports from the US in December after a cow tested positive for the disease. The infected cow was later found to have originated from Canada.

 

South Korea's beef demand has ebbed since the mad cow cases, due to health concerns as well as a sluggish economy.

 

"Total beef demand has fallen almost by half. We expect demand to pick up next year if the economy recovers," Yi said.

 

While many consumers have tightened their belts, however, a trend for so-called healthier cuts of meat in Korea has boosted the consumption of New Zealand beef.

 

Compared with the US, Canadian and some types of Australian beef, Yi said New Zealand beef had been known for its poor quality due to a lower degree of marbling - the fat inside the muscle of cattle.

 

But now that perception was changing.

 

"Many could not help choosing our beef without US supplies. Once they had made that choice, those prejudices on low-fat beef are gone."