December 9, 2024

South Korea sees second-lowest frozen meat imports for October

South Korea recorded its second-lowest monthly frozen meat imports of 2024 in October, as demand surged in other markets such as the US and the Philippines.

This information was reported by the Korean Meat Trade Association and S&P Global Commodity Insights.

Data from Commodity Insights showed that the Platts assessment for Pork Belly CFR North Asia rose to US$4,844 per metric tonne (mt) by 29 November, up 4.9% from US$4,620 per mt at the beginning of the month. This price increase has been driven by strong demand in the US and the Philippines, along with low inventory levels and the impact of African swine fever (ASF).

According to the US Department of Agriculture (USDA), frozen pork inventories in the Philippines have declined by nearly 40% over a nine-month period due to ASF outbreaks. In October, the Brazilian Animal Protein Association (ABPA) reported that the Philippines imported 33,349 mt of pork from Brazil, far exceeding South Korea's total import volume of 25,419 mt for the same month.

Brazil's exports to the Philippines have significantly increased, making the Philippines Brazil's largest pork export market. Between January and October, 186,880 mt of pork was shipped to the Philippines, surpassing exports to China. Market sources in the Philippines anticipate this trend to continue until ASF-related challenges are resolved.

In South Korea, October is traditionally a slower month for pork imports as demand peaks in the US due to the grilling season and seasonal holidays in November and December. Despite South Korea's ongoing ASF outbreaks—10 recorded by September—and lower swine production, import volumes remained low. The weakening of the South Korean won, which typically benefits importers by lowering costs, did not result in higher import volumes.

At the start of 2024, South Korea faced inventory challenges, as domestic demand for pork belly fell short of expectations. Market sources attribute this to lower-than-anticipated consumption by both locals and tourists. Although foreign tourist numbers have since improved, their average spending decreased by 37.7%, with Yanolja Research reporting an average expenditure of US$1,002 per tourist in the first half of 2024.

-      S&P Global