September 14, 2010

US beef exports to South Korea seen to soar in 2011

US beef shipments to South Korea are expected to grow dramatically next year due to declining concerns over mad cow disease among consumers in the fourth biggest market for US beef, the USDA said Monday (Sep 13).

US beef exports to South Korea will likely soar 24% to 136,000 tonnes next year from 110,000 tonnes estimated for this year, the USDA said in a report. This year's estimate is based on the whopping 130% rise to 50,221 tonnes worth US$225 million in the first half, according to figures from the US Meat Export Federation (USMEF).

The statistics exceed last year's total shipments of US$216 million to South Korea but fall short of the US$815 million recorded in 2003, when South Korea banned imports of US beef due to fears over bovine spongiform encephalopathy (BSE) in the US.

USMEF president Philip Seng said that the 'Trust' imaging campaign for US beef and in building relationships with both beef buyers and consumers has helped to regain consumer confidence, and has created much more interest among the supermarket and restaurant trade.

Seng also noted the recent partnership with Lotte Mart, a major Korean supermarket chain, to reintroduce T-bone steaks in Korea.

The surge comes amid some US politicians demanding the restricted shipment of beef be addressed before the ratification of the pending free trade deal with South Korea.

South Korea currently prohibits shipments of beef from cattle older than 30 months due to concerns over mad cow disease. The US beef industry has called for a cautious approach, fearing a possible backlash in the Korean market, where US beef shipments have grown rapidly since South Korea resumed imports in 2008 after a five-year hiatus.

The Obama administration has not yet made a decision on whether wider access to the Korean beef market should be a precondition for the FTA's ratification.

Meanwhile, the Paris-based World Organization for Animal Health (OIE) has classified the US as "a controlled risk country," meaning the US can export beef with minor limits to certain cuts that may transmit BSE to humans. Japan prohibits shipments of US beef from cattle over 20 months old.