December 29, 2003

Korea Beef Demand Expected to Dip 4.8% in 2004

The Korean Agriculture and Forestry Minister Huh Sang-man said last Friday that domestic demand for beef is expected to fall 4.8% annually to 376,000 tons next year following the mad cow case in the United States.

Huh told reporters in a press briefing that the country "will have almost no problem with the supply of meat, including beef, next year."

"If the case is confirmed as mad cow disease, the government will ban U.S. beef imports as planned," he said.

South Korea has imported 273,253 tons of U.S. beef in 2003, with the beef from Washington state accounting for 6.9% of the total, or 18,856 tons, according to the ministry.

Huh said there are 105,000 tons of beef in stock, an amount sufficient for four months, and expected it to be enough for short-term demand over the next three months. According to the minister, the country needs three months to change its main source of beef to other countries.

Regarding mid-term beef supply, Huh expected the government to be able to secure part of Australian and New Zealand beef exports to the U.S. because the country has no choice but to consume domestic beef rather than imports.

In the long term, Huh predicted domestic consumption of pork and chicken to increase because of a hike in beef prices in line with a lack of beef supply worldwide.

"We estimate surplus pork to reach 125,000 tons next year and we will also be able to increase chicken production rapidly," Huh said.