Australia-Beef exports to Korea are still good.

AUSTRALIA-Aussie beef increases market share in Korea

Despite the resurgence of United States beef exports, Meat and Livestock Australia is reporting that Australian beef has increased its share of the valuable South Korean market.

According to MLA, Australian beef exports to Korea increased during the final few months of 2008, reaching 14,472 tonnes (shipped weight) by December.

Although Australian beef imports for Korea reported a 52pc decrease in January, market share increased from 35pc in October last year, to 50pc in January.

MLA says market share for US beef imports in Korea dropped from 59pc to 27pc over that same period.

MLA says that some Australian exporters are reporting that the financial situation for their Korean clients has improved due to declining stock levels, but most importers are still facing trading difficulties due to the fluctuation of the Korean won against the US dollar and the deepening economic crisis.

Meanwhile, MLA is reporting on-going difficulties in the US market due to weakening consumer demand and high local and imported supplies.

It says the US cow kill is 10-15pc up on the high levels of last year, due largely to a liquidation of dairy cows, triggered by low milk and cheese prices.

Also, lower cow/calf profits and mixed seasonal conditions are further delaying the expected fall in beef cow kills, with numbers up 4pc year-on-year.

MLA says buying remains on a hand-to-mouth basis, due to the ample local and Australian supplies on offer, credit problems, wildly fluctuating currency values and concerns over future consumer demand.