Meat Industry INSIGHTS Newsletter

971072 S. Korean Beef Consumption Up Despite Scare

October 31, 1997

WASHINGTON - Beef consumption in South Korea is expected to climb to 450,000 tonnes this year despite concerns about harmful E. coli bacteria and "mad cow" disease, the U.S. Agriculture Department said Friday.

In a report on world markets for livestock and poultry, USDA's Foreign Agricultural Service indicated further gains were likely in 1998. One chart suggested imports and domestic production would total more than 525,000 tonnes.

Consumption dropped early in 1997 due to worries about food-borne disease, the report said, but an overall increase was expected for the year.

"The recent announcement by the (South) Korean government that E. coli bacteria and lysteria bacteria had been detected in separate shipments of U.S. beef add another element of uncertainty to levels of Korean beef consumption and imports of U.S. beef," the report said.

Imports account for nearly half of consumption. Import highs year were forecast to stay at the minimum annual quota of 225,000 tonnes, on a carcass weight basis, due to reduced demand and high domestic output.

South Korea is the No. 3 market for U.S. beef exports. It bought 70,617 tonnes of U.S. beef worth $244 million in 1996. In the first eight months of this year, it bought 59,584 tonnes worth $188.4 million compared to 46,846 tonnes worth $168 million in the same period of 1996.

The U.S. share of the South Korean market rose to 54 percent in the first part of 1997, the report said. Australia held 32 percent of the market and New Zealand 11 percent.

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