November 7, 2007

 

Imported beef prices in South Korea fall by 7.6 percent

 

 

Prices of imported beef have been falling sharply this year since the conclusion of a free trade agreement (FTA) between South Korea and the United States and the resumption of imports from America, Korea's government statistics showed Tuesday (November 6).

 

In the latest report by the National Statistical Office (NSO), prices of imported beef have fallen 7.6 percent in the third quarter of the year compared with the same period last year, the biggest decline since late 1995.

 

Homebred beef prices also dropped by 3.2 percent from the same three-month period last year, posting the sharpest fall since the last quarter of 1998.

 

NSO said the drop in prices is the "latest trend as prices of both domestic and imported beef have been falling for three consecutive quarters."

 

In the meantime, prices of pork also fell significantly due to low beef prices. Pork is in competition with domestic and imported beef.

 

Pork prices fell 7.3 percent in the July to September period from a year ago, also the sharpest decline since the second quarter of 1996.

 

The fall in meat prices were also attested by the Korea Agro-Fisheries Trade Corporation (aT).

 

According to the aT's Korea Agricultural Marketing Information Service, hanwoo (homebred beef) for bulgogi sold for 17,843 won (US$19.65) per 500 grams in October on average, down 15.6 percent from 21,138 won one year ago.

 

As for Australian beef, the average price of sirloin fell from 21,606 won to 20,958 won (3 percent); ribs, from 12,968 won to 10,308 won (20.5 percent); and meat for bulgogi, from 10,171 won to 8,450 won (16.9 percent) in the past year.

 

Pork for samgyeopsal, or Korean-style bacon, which sold at an average price of 7,595 won per 500 grams at local butcheries in October last year, also fell 5.42 percent to 7,183 won.

 

South Korea banned American beef in late 2003 after mad cow disease was found in cattle in the US It partially reopened its market last year but agreed to accept only boneless meat from cattle under 30 months old, regarded as less dangerous.

 

Since the conclusion of the South Korea-US FTA, Seoul has been considering expanding beef imports, including bone-in beef such as ribs despite opposition from local stockbreeders and some civic groups.