July 18, 2007

US beef to be sold throughout South Korea next month 

US beef is expected to be sold in department stores and discount outlets throughout South Korea starting next month, local media said Tuesday (July 17). 

Home Plus, a subsidiary of UK- based Tesco, will start selling US beef Aug. 9 at its 55 stores nationwide. E-Mart, the country's biggest supermarket chain, will bring in about 100 tonnes of US beef, but will wait to gauge the market.

Up to 20 retail chains are preparing to put American beef on their store shelves on August 9 and are holding joint promotional campaigns to assuage customers on the safety of US beef.

By banding together, stores hope to avoid the scenario caused by civic groups and cattle farmers that disrupted US beef sales in Lotte Mart stores last week. Lotte Mart was one of the first retail chains in the country selling US beef. Despite protests, its six stores managed to sell out all 40 tonnes of US beef within the first few days.

The South Korean office of the US Meat Export Federation said many stores have expressed interest in selling American beef.

American beef is half the price of Hanwoo beef and is about 20 percent cheaper than Australian ones.

South Korea currently does not allow bone-in beef but restrictions may be lifted by September, which would cause an even sharper rise in demand. The country imported 1,500 tonnes of US beef from April to June this year.