Demand For Imported Beef Continues To Rise As South Koreans Decline To Buy Expensive Local Beef

The failure to re-establish herds in South Korea has resulted in the the continuous increase of the price of Hanwoo in the country, compelling some locals to buy imported beef instead of locally-produced Korean beef.

A 62-year-old housewife says she and her husband only eat Hanwoo occasionally because the Korean beef is costly as compared to imported beef.

"Hanwoo is the food we cannot skip on special days like holidays and rituals for ancestors, but on a regular basis my husband and I eat imported beef as Hanwoo is so expensive," says Park Hee Jung, as noted by Reuters Sept. 24.

According to Korea Agro-Fisheries & Food Trade Corporations' data, domestic beef ribs cost 4,912 Korean won ($4.13) for every 100 grams. Meanwhile, a survey conducted by the Korea Rural Economic Institute reveals that the price of local beef ribs "is much higher than the 1.67 times more South Koreans are prepared to pay over the price of Australian ribs."

A South Korean cattle farmer who owns a restaurant says "it's a tough time to sell."

"We are charging the same as before although beef prices have gone up," Min Jae Ki states. "Otherwise customers won't come."

On the other hand, beef imports from Australia increased 11 percent during the first eight months of the year, according to data. This is said to be the result of fewer Hanwoo cattle in South Korea and the soaring prices of Korean beef in the country.

"High prices for domestic beef will boost imports further next year," says Korea Rural Economic Institute research associate Lee Hyung Woo.

In a report two years ago, Hanwoo breeders were reportedly eyeing to promote the native cattle in foreign markets amid consumption slump in the country, as reported by Korea Times on May 26, 2013.

Hanwoo Board chairman Kang Sung Ki says they have started marketing campaigns abroad to promote the native cattle to foreign markets and consumers.

"These days, most farmers breeding Hanwoo are facing financial problems due to slow consumption and other unfavorable business condtions," says Kang. "Over 90 percent of farms here are small, raising fewer than 20 cattle."

He adds, "It is difficult for them to effectively deal with the current economic issues. That is where we step in, advocating for them and helping them run their businesses."

Meanwhile, a market information manager from the Meat & Livestock Australia in Sydney says that Korea has a stable market for the company in the last 3 to 4 years.

"Australia is on track to send about 150,000 tonnes beef to South Korea this year," says Ben Thomas.