September 24, 2010

Korean beef demand to rise 3% next year

Korean beef consumption is forecast to increase 3%, or 20,000 tonnes in 2011, totalling 620,000 tonnes, according to a Global Agricultural Information Network (GAIN) report release this week by the USDA.

In order to meet the increase in Korean beef demand in 2011, total Korean beef imports and domestic beef production are expected to rise, with domestic production to rise 11%, to 311,000 tonnes. The USDA expects US beef exports to Korea to increase by 26,000 tonnes in 2011, to 136,000 tonnes, with the US acquiring 40% of the imported beef market share in 2011.

Other suppliers of beef to the market, namely Australia, New Zealand and Mexico are expected to face tougher competition in 2011, from both the higher domestic supplies and higher US imports.

The Korean cattle herd is predicted to continue to expand into 2011, underpinned by strong cattle and calf prices in comparison to the last two years. However, some softening in prices throughout 2011 is expected to increase turnoff, resulting in higher cattle slaughter rates next year and the forecast increase in production.