December 11, 2009

US beef industry to restore confidence in South Korea

The US beef industry will not rush into regaining market share in South Korea, preferring to go step-by-step instead.

Philip Seng, president and chief executive of the US Meat Export Federation (USMEF), said they would first build an understanding with the consumers.

Seng also emphasised that the USMEF would like the market to dictate South Korea's choice.

Prior to an outbreak of mad cow disease in the US in 2003, South Korea was the country's third-largest export destination because of US beef's competitive price. In 2003, US beef accounted for 67 percent of the Korean beef market, representing 224,036 tonnes of the 325,823 tonnes of total imports, according to USMEF data.

Exports to South Korea resumed in July 2008 but it was not until late November last year when the meat finally got onto the market shelves of leading local retailers, due to consumer concerns for the safety of US beef. USMEF figures also showed that US beef exports to South Korea during January to October accounted for 46,432 tonnes of the 181,609 tonnes of total imports, recouping 25 percent of the Korean beef market.

The USMEF noted the total import figures reflect a decline in South Korea's beef consumption trend. Yang Ji-hae, director of the local USMEF office, said the US beef controversy has affected overall beef demand.

Seng said South Korea is a very important market and that the USMEF has a positive outlook on the market, even though there is a long way to go.