April 19, 2013

Wholesale prices for Korean native cattle (or 'Hanwoo') and pork have declined by 1% and 3%, respectively, this week.

During the first quarter of 2013, Korean national pig numbers increased 1.9% from the December 2012 quarter, at 10.1 million head. Hanwoo cattle declined 2.9%, at 2.84 million head.

Korean wholesale prices for imported beef remained firm this week due to slow trade. Despite reportedly high stock levels of clod, prices for Australian clod rose slightly (1%) this week, due to strong interest for an alternate cut to chuck roll. In contrast, US short rib prices eased 4% on last week and 7% from the start of this year, partly due to relatively high stock levels.

Sales growth at discount stores during April is expected to see its worst in recent years. Sales growth at three large discount stores from April 1 to April 15 is forecast to be down 8%, which is lower than the growth registered in March (-4.5%).

With the weak economy in Korea combined with recently revised policies, retailers have been facing increased difficulties in recent months. Hypermarkets will be required to close twice a month on a weekend from as early as April 28, as well as to give the government advance notice on newly opened outlets.

However, demand for imported beef is reportedly expected to improve in May, in response to better weather conditions and the onset of the summer barbeque season.