South Koreans love U.S. pork and, thanks in part to retail promotions conduc...
South Koreans love U.S. pork and, thanks in part to retail promotions conducted by the U.S. Meat Export Federation (USMEF), they are learning to love U.S. chilled pork. In the last decade, South Korea consistently ranked in the top 10 international buyers of U.S. pork, but in 2005 U.S. pork exports to Korea exploded. The United States exported 71,856 mt of pork and pork variety meat worth more than $154.7 million to Korea — a 158 percent increase in volume and a 176 percent increase in value. Recent programs by USMEF have been based on market intelligence that the Korean pork market is transitioning from a largely frozen commodity market to one in which steady sales of higher-value U.S. items — i.e., chilled pork — are possible year-round. Pork is a staple in the Korean diet, chilled is generally preferred over frozen and consumption is expected to grow in tandem with the population and the improving economy.
The domestic South Korean hog industry is enjoying a period of high demand due at least in part to the closing of the market to U.S. beef following the discovery of the United States’ first bovine spongiform encephalopathy (BSE) case in December 2003, and to outbreaks of avian influenza in countries that were major poultry meat suppliers to Korea. High domestic beef prices and low confidence in the government’s country-of-origin labeling have encouraged consumers to substitute pork and fish for beef and chicken.
Korean consumers have a preference for thinly sliced pork, and pork belly is the most popular cut in the Korean market. The U.S. pork industry sends single-ribbed bellies because Korean retailers prefer them because of their intercostal meat. Boston butt is the second most popular pork cut imported into the Korean market, but pork ribs are imported as well. Pork from Boston butt is added to rib dishes to make them more “meaty.”
South Koreans, like people the world over, often think that domestic product is superior. Once they’ve sampled delicious, U.S. pork, they know better, and their reluctance to buy it vanishes. Its taste and texture are comparable to domestic pork while costing 20 percent to 25 percent less. Since USMEF has complete faith in U.S. pork, its mission is to get consumers to try it and let them know which pork they’re eating so they’ll know what to buy on future occasions. With funding from the South Dakota Soybean Association and in partnership with three Korean retail giants, Samsung Homeplus, Lotte Mart, and GS Retail, USMEF held a series of U.S. chilled pork promotions at supermarkets last November and continues them still. To maximize the impact, U.S. chilled pork is available at many outlets, but promoted with tastings at 10 different supermarkets per month. Since USMEF knows what Korean consumers like, the main promoted U.S. pork items are chilled single ribbed belly and Bostonbutt.
Results from the first two months indicate the U.S. chilled pork promotion increased sales by 276 percent in the supermarkets involved from November 11 through the end of 2005.
The promotions are part of the broad USMEF strategy to promote U.S. chilled pork. More than 200 Korean traders, wholesalers and retailers attended a USMEF seminar in December 2005, about the current market situation, opportunities in the market and strategies for importing chilled U.S. pork into Korea. The seminar provided reassurance to attendees that chilled U.S. pork is safe, high quality and profitable. The main topics included temperature control, microorganism control and hygienic procedures from slaughter to shipping. In addition, details about how chilled U.S. pork is packaged to extend shelf life, without affecting quality and safety, were also discussed.
Speakers at the seminar focused on how improved packing technology, prolonged shelf life and enhanced transportation methods have dramatically increased the demand for chilled U.S. pork from 2003, when only small amounts of chilled U.S. pork were exported to Korea.
The U.S. Meat Export Federation 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, lamb, sorghum and soybean checkoff programs.
– USMEF –