August 20, 2012

Despite government's inducements to reduce the number of cows, South Korea's cattle herd reached a record high 3.52 million in June (12% dairy cattle).

For the first six months of 2012, Korean cattle slaughter totalled 452,207 head, a jump of 22% on-year, with females making up more than 77% (62,393 head) of the increase, as reported by Nonghyup (Korea's National Agricultural Cooperatives Federation).

Despite the efforts of the Korean Government to induce higher female throughput to halt the herd growth, historical evidence suggests that slaughter numbers will need to rise further before the cattle herd will decline. However, Korea's economic slowdown and subsequent fall in consumer demand for beef has hampered government stimulus and the ability for additional product to move through the supply chain.

According to the Korea Institute for Animal Products Quality Evaluation (KAPE), the portion of top graded (1 or higher) Hanwoo beef in the first six months of 2012 was 58.2%, compared to 64% last year, with the decline largely due to the rise in cow slaughter.