September 14, 2006

South Korea's Hanwoo beef able to hold its own against US beef

Prices for South Korea's venerated Hanwoo beef (Korean produced beef) would remain competitive, even if the expected lifting of tariffs should bring greater competition from US beef, a report released by the Korea Rural Economic Institute said.

South Korea is expected to reduce or even scrap the 40 percent tariff currently imposed on US beef under a free trade agreement between the two countries, the Korea Herald reported.

Should the tariffs be lifted, production level are expected to fall 11.5 percent while prices would take a 5.6 percent hit, the report said. The figures released were less than what had been expected, indicating a more limited impact of US beef on the South Korean beef market.

The optimistic projection is partly due to the fact that Hanwoo beef is perceived as being fresher and of higher quality than imported beef in the South Korean market.