The report, Korean Beef Market: Developments and Prospects, was released today by ABARE Executive Director Phillip Glyde.

“‘The temporary ban on imports of US beef by the Republic of Korea, and increased import demand for a greater range of beef cuts, contributed to a significant rise in the volume and prices of beef cuts from Australia,” explained Mr Glyde.

The reopening of the Korean market to US beef exporters in 2008 under a new beef import protocol has led to increased Korean beef imports from the United States. However, the continued growth in total Korean beef imports has minimised the adverse effects on Australia of increased US beef exports to the Republic of Korea.

“Despite the increase in US beef imports, sales of Australian beef remain strong in the Korean market. Australian beef sales accounted for 60 to 70 per cent of total sales of imported beef in major retail stores, such as department stores and large supermarkets, during the first three months of 2009,” Mr Glyde said.

“Currently, imported beef accounts for more than 50 per cent of the beef market in the Republic of Korea.”

“The demand for Australian beef in the Republic of Korea is expected to ease as consumer confidence in the safety of US beef gradually increases. However, current trends in the Republic of Korea in favour of clean and safe food are likely to support the position of Australian beef exporters in that market,” Mr Glyde explained. 

“Over the medium to longer term, beef consumption in the Republic of Korea is expected to increase further, in line with income growth.  This, together with the clean and safe image of Australian products, offers the prospect of future growth in Australian beef exports to the Republic of Korea,” Mr Glyde noted.