American beef beat Australian beef in import volume in first quarter


Four years have passed since the mass protests against U.S. beef imports swept the country over fear of mad cow disease.

American beef has now regained its spot as the most popular foreign beef in Korea with an import market share of 44.2 percent, eclipsing Australian beef (42.9 percent) in the first three months of this year.

“We are now past the concern of safety,” Philip Seng, chief executive of the U.S. Meat Export Federation, told The Korea Herald last week.

“According to the Korea Rural Economic Institute, more than 50 percent of Korean consumers have purchased American beef. All the major hotels and retailers are using U.S. beef, so I think there is clearly a universal acceptance of our products.”

The marketing programs of USMEF are now aimed at recovering the market share they had in 2003, according to Seng.

In 2003, U.S. beef accounted for nearly 70 percent of the imported beef market in Korea, or about half of the country’s total beef consumption.

Then the first case of bovine spongiform encephalitis was confirmed in the U.S., prompting the Seoul government to prohibit American beef imports late that year.

Korea partially lifted the ban in 2006, allowing only boneless meat from cattle aged less than 30 months. Seoul agreed to fully resume U.S. beef imports in 2008, but decided later that year amid the public uproar to accept meat from only cattle younger than 30 months.

“It was agreed that the limit will be lifted when consumer confidence is restored, and I don’t think there is high pressure now to start the talks,” Seng said.

Japan, on the other hand, is expected to ease the restrictions on U.S. beef imports hopefully in July, and this will cause beef prices to go up, he said.

Seng travels to Korea about twice a year to meet with major importers, retailers, food service establishments, and sometimes with the U.S. Embassy and Korean government officials.

More than 100 countries import U.S. beef, and Korea is a top-five market with Mexico, Canada, Japan and the ASEAN.

“The global meat market is having a big challenge this year due to high oil prices, but we believe U.S. beef exports to Korea will continue to grow as the country’s beef consumption is increasing,” Seng said.

Korea’s annual beef consumption per person exceeded 10 kilograms for the first time last year.

Rising oil prices cause the price of corn to go up as using corn in biofuels as an alternative to fossil fuels becomes more attractive.

“The price of corn has more than quadrupled over the past six years and corn production has been declining in major producing areas such as the U.S., Canada, Mexico, Australia and South America,” Seng said.

“Since feed takes up over 50 percent of (U.S. beef) production costs, trade in beef, which has been growing each year by 3-5 percent, will slow down this year.”

The Korean market has changed a lot since he first set foot in the country in 1982.

“Koreans in the past simply wanted to obtain protein from beef, but now we have highly sophisticated buyers who know exactly what they want ― from frozen or chilled meat to the different cuts and grades,” he said.

The diversifying consumer taste and food culture are an opportunity for USMEF as American beef comes in a wide range of products from cost competitive ones to top quality meat, according to the CEO.

Under the Korea-U.S. free trade agreement that took effect last month, the tariff on U.S. beef will be reduced by 2.7 percent each year over 15 years, which Seng thinks is not such a big decline that would upset Korean producers.

“The timing of the FTA is perfect because Korea has the highest food prices in the world. The gradual decline in duty will make beef more affordable for the consumers,” he said.

Praising Korean beef, or hanwoo, as world-class meat, Seng said hanwoo producers should export their products to the U.S., adding that competition will make them stronger.

By Kim So-hyun (sophie@heraldcorp.com)