December 13, 2003

Opportunity For US and Australia Imports in Korea's Stagnant Beef Industry

Korean frozen beef market is currently at a stagnant stage, hence giving chance for the US and Australian beef to moving into the market with chilled imported beef, now challenging Hanwoo beef in the premium area.  Following on from the Hanwoo branding movement, high quality branded imported products is becoming increasingly popular in meat cabinets.

From December 19, the US company IBP's high quality "Chairman's Reserve" brand will become available in 11 Lotte Department outlets.  It is planned that a special sales corner devoted to the product will be set up in five of these outlets, together with in-store cooking demonstrations and other sales promotion activities.

The animals used for the Chairman's brand are slaughtered at 9 to 30 months of age, with a high level of marbling.  Importers comment that there is almost no difference between first grade Hanwoo and the imported premium product.  As an added advantage, the imported product is around half the price of Hanwoo, ranging from 40,000-50,000 won/kg as compared to 80,000 won/kg for Hanwoo.

Since the beginning of this year, Excel Foods, a subsidiary of multinational Cargill, has been supplying the Korean market with its "Sterling Silver" beef brand through Home Plus stores.

While total frozen imports increased by 1.9% in the calendar year to September, chilled beef imports have increased by 76%.  Industry insiders believe that within the next five years, the level of chilled imports will increase from 5% of total imports in 2002 to 20% of all imports.