Korean Government Halts Imports Of French Pork

South Korea                                                                               

Korean Government Halts Imports Of French Pork

USMEF-Korea reports that the government of South Korea has now halted imports of French pork, as well as Dutch, Belgian and German pork, due to concerns raised by the discovery of dioxin in feed produced in a Dutch plant. The ban is likely to stay in place for at least eight weeks, USMEF-Korea estimates, while Korean authorities review information provided by the exporting countries to assess risk.

The effect of the ban has been to increase Korean selling prices of its frozen European stock by 300-500 won ($0.27-0.45) per kg, which according to USMEF-Korea, will help domestic pork prices, which are at a seasonal low.

The ban may help U.S. pork sales to restaurants and hotels, since European frozen belly was selling at about 20-30 percent lower than U.S. chilled single ribbed belly (depending on the specification). Most U.S. pork exported to Korea is bone products such as neck bone and back bone for restaurants and boston butt and picnic for further processing. Chilled single ribbed bellies are usually sold in retail stores and some restaurants. There is, therefore, some potential for higher U.S. chilled pork sales, but the market for U.S. and European pork has been different enough for USMEF-Korea to caution against any strong benefits for U.S. pork.

South Korea                                                                               

Korean Government Halts Imports Of French Pork

USMEF-Korea reports that the government of South Korea has now halted imports of French pork, as well as Dutch, Belgian and German pork, due to concerns raised by the discovery of dioxin in feed produced in a Dutch plant. The ban is likely to stay in place for at least eight weeks, USMEF-Korea estimates, while Korean authorities review information provided by the exporting countries to assess risk.

The effect of the ban has been to increase Korean selling prices of its frozen European stock by 300-500 won ($0.27-0.45) per kg, which according to USMEF-Korea, will help domestic pork prices, which are at a seasonal low.

The ban may help U.S. pork sales to restaurants and hotels, since European frozen belly was selling at about 20-30 percent lower than U.S. chilled single ribbed belly (depending on the specification). Most U.S. pork exported to Korea is bone products such as neck bone and back bone for restaurants and boston butt and picnic for further processing. Chilled single ribbed bellies are usually sold in retail stores and some restaurants. There is, therefore, some potential for higher U.S. chilled pork sales, but the market for U.S. and European pork has been different enough for USMEF-Korea to caution against any strong benefits for U.S. pork.