South Korea-Subsidy for beef farmers.

SOUTH KOREA.

GOVERNMENT TO SUBSISIZE LOCAL BEEF CATTLE.

THE ministry of Food Agriculture Forestry and Fisheries, in South Korea, announced on Monday, a new plan to help local farmers combat the competition of cheap beef imports, as the market has been flooded with cheap American beef.

The new plan is for three years from now until 2012, where local farmers will receive. assistance from the government to increase the local herd of beef cattle.

There was 530,000 tons of beef in South Korean cold stores held in quarantine, after the renewal of the ban on US exports after meat was found that contravened the South Korean laws of import. Added to this the USA have been exporting far more beef than was actually sold in the last two months, filling up all the available cold storage with US beef product.

When the 295 main supermarkets in South Korea, agreed to start stocking American beef two weeks ago, this was done only because the prices offered were to good to refuse, bringing the market price down by 25% in a few short days.

Australia are pushing their beef in a large promotion and New Zealand have launched a grass fed beef promotion that will run into January. Uruguay are now attempting to sell their grass fed cattle on the market to compete with New Zealand.

The move by the government offers some protection to the local farmers.