October 8, 2010

South Korea prepares for major Australian beef demand

South Korean importers are keen to increase their stocks of Australian beef in preparation for the Lunar Year demand, according to Korean news sources.

Australian beef exporters reported steady enquiries from Korean buyers this week. Korean news sources have also described beef sales as solid during Chuseok (Harvest Festival).

Prices for imported beef cuts in the Korean wholesale market increased across the board this week. Strong beef sales during Chuseok and tight Australian supplies may result in continuing solid prices in the Korean market. A number of Korean beef importers indicated that they are aware of the current supply situation and are somewhat concerned about having sufficient product to meet beef demand ahead of the Lunar Year.

Total Australian exports to Korea in September totalled 9,365 tonnes swt-with chilled beef accounting for 28%. While volumes for most cuts remained steady, blade volumes in September decreased 40% on the previous month and 35% on the same month last year. Blade has been a popular item this year, jumping 36% from January to August compared with the same period in 2009.