Iowa, Nebraska Producers Wrap Up Corn-Fed Beef Trade Mission in Korea

A delegation of corn and beef producers from Iowa and Nebraska wrapped up its Asian trade mission this weekend with a series of events in South Korea.  The group had several meetings with retailers, distributors, cold storage operators and packer representatives, and observed a retail beef sampling promotion at an E-Mart outlet in Bundang, a southern suburb of Seoul.

The group arrived in Korea June 25 after participating in similar events in Japan last week. The delegation included David Hamilton of Thedford, Neb., representing the Nebraska Beef Council; Mark Jagels of Davenport, Neb., and Alan Tiemann of Seward, Neb., representing the Nebraska Corn Board; Merle Unkrich of Winfield, Iowa, representing the Iowa Corn Promotion Board; and Kevin and Terri Carstensen of Odebolt, Iowa, representing the Iowa Beef Industry Council.

The delegation capped off its Korean itinerary at a large outdoor barbecue held by USMEF at E-Mart’s Wolgye outlet. The event offered great opportunities for face-to-face interaction with Korean consumers and a chance to personally promote the safety and quality of U.S. beef. The June 27 barbecue, along with a similar promotion held the following day, attracted more than 7,000 customers and produced a significant jump in the store’s sales of U.S. chilled chuck eye roll. 

“This trade mission been a great opportunity for Nebraska and Iowa corn and beef producers to work together to capitalize on one of our best assets – the high-quality, grain-fed beef that we export from the United States,” Hamilton said.

The neighboring markets of Japan and Korea both hold great potential for U.S. beef exports, and at one time they were the No. 1 and No. 3 beef export markets respectively.  But today the group found many contrasts between the two countries in terms of the business climate for U.S. beef.

“From a consumer acceptance and demand standpoint, I think the atmosphere in Japan is quite favorable if we can just get our governments to work together and give us better access,” Hamilton said, referencing the 20-month cattle age limit on U.S. beef exported to Japan. “But we have a totally different set of challenges in Korea. Here we have an ample supply, but the greatest challenge I see in Korea is the lack of consumer acceptance. There are still many misperceptions among Korean consumers that U.S. beef is not safe.”

“Their impression is that we export different beef than we feed to our own families, which is obviously not the case,” he added. “USMEF has done a tremendous job of rebuilding our base of importers, distributors and retailers, but we just need to build on that and remain diligent in our efforts to educate Korean consumers.”

“There’s a world of difference between here and Japan, and we really have obstacles we need to overcome here in Korea,” Unkrich said. “At one promotion we attended, the beef sold as fast as they could put it in the counter – that was very impressive. But when we walked away, it really slowed down.”

Despite these formidable challenges, both producers feel it is important to remain committed to the Korean market and to the industry’s investment in rebuilding beef market share.

“I certainly support the promotional efforts of USMEF, because if we don’t promote our product here we won’t get anything out of this market,” Unkrich said. “It’s an absolute must, because there are 50 million people here in an area the size of Indiana. So we have a tremendous opportunity if we can just change consumer attitudes.”

“The three strategies that USMEF has – buyer loyalty, market expansion and issues management – I think they’re really right on target,” Hamilton said. “As USMEF members and contributors, I think we need to finance as much promotion as we possibly can in the foreign markets. We have the greatest potential to gain volume and value in exports in the Japan and Korea markets, and that’s the message we need to take back home.”

Unkrich also noted the increasing costs of other proteins in the region, and feels this could open new doors for U.S. beef.

“The price of seafood is getting a lot higher here, and I think beef has a chance to capture some of the market,” he said. “We have a golden opportunity over here.”

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

Photo for use with this release: Nebraska corn producer Alan Tiemann (right) and Iowa cattleman Kevin Carstensen serve delicious U.S. steak to a Korean family at a USMEF beef barbecue