Update on Korean beef market

Hanwoo cattle

Statistics Korea published a Q2 report on livestock statistics which showed that Korean native and beef cattle numbers rose 0.6% to 2,742 thousand head, compared to the same quarter in 2015.

Trends in Korean livestock numbers  - Statistics Korea

While cattle numbers have edged higher the longer term trend is that beef production is not keeping pace with consumption.

Statistics Korea report that although costs of production of domestic Korean cattle have eased, imports from Australia, USA and New Zealand will be of great importance to the Korean local beef supply availability.

KITA figures show fresh, chilled and frozen beef import values jumped 13.2% in August 2016 compared to August 2015. 37,061 tonnes total beef imports were recorded for the month of August 2016 and year to date imports are already 248,205 tonnes for the calendar year to August. Year to date average unit value is US$5.68 per kg. and August import unit value for beef imports was US$5.66 per kg. 

The latest USDA FAS Korean livestock report predicts that Korean cattle numbers will likely be unable to hold at current levels due to uncertainty about prices and costs. The USDA forecast the Korean calf crop will go into its third straight year of decline in 2017. Lower US beef prices as well as a lower duty rate will assist US beef exports to increase their share of the market. The same report notes the USA duty will be  24%, compared to 29.3% for Australia and 32% for Canada in 2017. Australia shipped 113,904 tonnes in the year to August 2016 compared to 105,845 tonnes for the same period last year.