South Korea | | Australian Campaign Mounts Challenge To U.S. Chilled Beef I...

South Korea

Australian Campaign Mounts Challenge
To U.S. Chilled Beef In Korea

In South Korea, Australian frozen and chilled beef competes with U.S. beef in the foodservice sector, especially in hotels and family restaurants, which are very price-sensitive. Australian beef packers are providing favorable contract and payment conditions such as guaranteeing price on a long-term basis. Traditionally, Australia produces grassfed beef, but more and more Australian grain-fed beef priced 20-30 percent lower than U.S. product is being sold in Korea.

South Korea’s rapid economic recovery has made it a more attractive market for both the U.S. and the Australians. The U.S., in the first nine months of 2002, has already broken its 2000 record for beef exports to Korea. In 2000, U.S. beef exports (including variety meats) to Korea totaled 159,238 metric tons (mt). In the first nine months of 2002, the U.S. has already exported 180,255 mt of beef and beef variety meats to Korea.

Meat and Livestock Australia (MLA) began an intensive campaign in September to promote Australian chilled beef, and the MLA regional manager characterized the campaign as a “long-term strategy to build a position of integrity and quality within the market place.” Cooking and sampling promotions is being supported by magazine and newspaper advertising spearheaded by leading Korean food and media personality, “Miss Choi.”

Australia exported only 762 mt of chilled beef to Korea in 2000 and over 2,100 mt in the first half of 2002.