September 13, 2010

Korea's Jan-July cattle slaughter falls 13%

Korean domestic cattle slaughter fell for the fifth consecutive month on-year during July, declining 12%, to 52,743 head, taking total slaughter for the first seven months of 2010 to 407,067 head - 13% below 2009 levels.

While the lower Korean cattle slaughter and beef production has assisted the rise in beef imports so far in 2010, import demand has also been buoyed by very robust consumer demand - a reflection of the strong Korean economy. 

With an increase in the average weight of cattle slaughter so far in 2010, total Korean beef production for January to July is estimated to be back 10% on-year, or around 11,000 tonnes swt. With quarantine cleared beef imports during the same period up almost 57,000 tonnes swt on-year, the decline in production accounts for around one-fifth of the rise in shipments to the market - the remainder attributable to stronger demand.

A recent report from the International Monetary Fund (IMF) stated that the Korean economy is forecast to grow at 6.1% in 2010, slowing to 4.5% in 2011.

However, the 14% fall in female cattle slaughter for January to July this year indicates that producers are still retaining breeding cattle in order to expand herds - even as the Korean herd approaches its highest level since the late 1990s. Looking ahead, any potential moves to halt herd expansion will bring increased cattle slaughtering and beef production, which could impact demand for imported beef.