October 8, 2007

South Korean beef market strengthens over the holidays

Beef demand in South Korea increased this week following the festival Chuseok, combined with concerns over future volumes of US beef.

According to Meat and Livestock Australia (MLA), retailers enjoyed a better than expected Chuseok, with major chains reporting a 10 percent to 30 percent increase in sales of Australian beef on last year. MLA reports there is strong inquiry for bone-in items such as short rib, chuck rib and tails while interest in boneless items was more subdued. Importers are now purchasing in preparation for seasonally high beef consumption in Korea over the remainder of the year.

Prices for Australian product increased in the wholesale market, due mainly to the reduced stocks following strong Chuseok demand. According to wholesalers, there was subdued trade in US beef last week and prices are starting to decrease.