South Korea-Beef prices holding firm.

SOUTH KOREA-Korean wholesale prices hold firm

24/04/2009

Australian exporters sent 5,297 tonnes swt of beef to Korea between 1 – 20 April this year. Contributing to the low export volume for the period were tighter cattle supplies caused by heavy rainfall and reduced slaughter days over the Easter period.

Despite the tight beef supply and low stock levels in Korea, wholesale prices for Australian beef held firm, as some Korean companies continued dumping Australian product in order to secure funds and reduce their bank debts. Most Korean importers expect prices to rise as soon as stocks are depleted and more Korean importers achieve financial stability.

Imports of Chinese beef stock (widely used for soups in Korea) were banned in Korea last week after the Korean quarantine service discovered the chemical clenbuterol in 17 shipments from China. Clenbuterol can artificially stimulate muscle development in cattle, but in the case of human consumption it can cause a rapid pulse, stomach ache and/or heart related disorders.

The ban on Chinese beef stock caused several Korean companies to inquire about Australian beef bone extract and may have created unexpected opportunities for some Australian exporters.