AUSTRALIA is battling for a share of the Korean red meat market.
The effects of the global recession in Korea, coinciding with the return of US beef, have made life tough for Australian exporters, according to Meat and Livestock Australia’s Korea manager Glen Feist.
"Korea is going to be a real battleground between the US and Australia. We have had the supermarket shelves to ourselves for five years and the US want their piece of the pie back," Mr Feist said.
Mr Feist will address this topic during one of many forums at Beef Australia 2009, in Rockhampton from May 4 to 9.
Mr Feist said that while Australia’s marketing plans were developed to counter the return of US product and would meet the production powerhouse "head on", market access would be the key to maintaining market share.
"We have been able to generate strong loyalty to the product, but if we don’t get parity in market access to the US, we will be behind the eight ball," he said.
Mr Feist said MLA would continue to advocate for market access and a free trade agreement, as well as ramping up marketing campaigns.
"We will maintain our already strong relationships and ’clean and green’ image, whilst also introducing more marketing aimed at increasing perceptions of taste and enjoyment," he said.
For most Korean shoppers, beef was the protein of choice and Australian the preference, he said.
"Importers bought 50,000 tonnes of cheap US beef upon its re-entry, but grossly underestimated retailers and consumers, Mr Feist said.
"This US beef hasn’t sold quickly and is now being discounted and clearing stocks."
This means importers would now resume buying in more regular patterns, he said.
"The Korean and US governments and MLA all predict considerable growth in beef consumption, in line with improvement in the economy.
"We may lose some market share, but any volumes we lose by way of re-entry by the US we will pick up with an increase in consumption."
Mr Feist said the market would return in four years’ time to the high levels seen before the global financial crisis.
"In the long term, this will be a 160-170,000-tonne market for Australia," he said.
Other MLA presentations will include recommendations for the beef marketing funding review of the cattle transaction levy, being undertaken by MLA on behalf of the northern Australian cattle industry.
Chaired by MLA chairman and Queensland cattle producer Don Heatley, this forum will also cover research and development activities being undertaken by MLA on behalf of the northern cattle industry.
The MLA Beef Frontier forums are on Thursday, May 7, from 8.30am to 12.30pm.
Beef Australia seminars run from Monday, May 4, to Friday, May 8.