September 14, 2006

Australia may lose 30 percent of its beef market in South Korea

Australia may lose up to 30 percent of their market in South Korea when the effects of the resumption of trading in US beef is felt in October, according to Meat & Livestock Australia.

Australia's beef exports to South Korea would probably decline from an estimated 120,000 tonnes this year to 85,000 tonnes for 2007, said MLA analyst Peter Weeks.

In addition, margins are likely to be lower, thus impacting profits.

The drop in South Korea's import figures is expected to be more acute as it has less stringent rules on US beef than Japan, thus giving US beef easier access to the market.

While Japan only allows US beef from cattle 20 months or younger, South Korea accepts those up to 30 months old.