June 2, 2006

 

Australia ready to take on the challenge as US beef re-enters South Korea

 

 

Meat and Livestock Australia (MLA) says exporters are preparing for major competition for the first time in more than two years in South Korea as the re-entry of US beef next week is expected to cut into Australia's US$500 million beef market there.

 

MLA regional manager in Korea Glenn Feist said he expects to see export levels falling but hopes Australia would be able to retain at least a 50 percent share.

 

Australian beef has gained a following during US beef's two-year absence, ranging from 5-star restaurants to fast food chains like Burger King.

 

The Cattle Council says Australian producers are likely to retain their strength in the bone-in beef market in South Korea as US products are limited to boneless beef.

 

Furthermore, the amount of US beef allowed in would be limited to those below 30 months of age, a factor working in Australia's favour, according to council president Bill Bray.

 

The main trade in beef in Korea is the bone-in short rib and Australia has been particularly strong in that area due to its freedom from mad cow disease, he said.

 

Meanwhile, total beef imports into Japan this April fell 7 percent on-year.

 

While beef supplies came mainly from Australia, increased volumes of chilled and frozen product also came from Mexico.

 

While Australian chilled imports to Japan were down 6 percent on-year, those from other countries increased 69 percent on-year, most of it coming from Mexico and New Zealand.

 

Australia holds 87 percent of the beef import market in Japan. In April 2006, Japan imported 37,447 tonnes of beef from Australia. New Zealand contributed 4,130 tonnes and Mexico 570 tonnes.