Korea noncommital on lifting beef bans
Korea has yet to even hint if, or when, it will lift its bans in place
on both U.S. and Canadian beef. While Japan has moved closer to lifting
its ban, sources with USDA said it appears Korean officials are waiting
for a full resolution between Japan and Canada and the U.S. before they
start the resolution process.
Korea did send a technical team to the U.S. last May to review and
validate the findings of the International Review Commission concerning
the U.S. protocols to prevent bovine spongiform encephalopathy (BSE)
from infecting beef in the future.
However, a high-level USDA official that has made several trips to Korea
during the past few months, told WLJ last week, that the Koreans are
content to wait for Japan’s final decision on the issue of beef imports
of U.S. and Canada before moving forward.
“Japan is considered (by Korea) to be the culture and society that is
most thorough when it comes to ensuring the utmost in human health and
economic sustainability,” the USDA spokesman said. “Once Japan decides
on a resolution there will be several other countries follow, and Korea
will probably be the first one, and will probably have a policy-making
process started within two weeks of Japan’s final decision.”
There are a couple of factors that could slow Korea’s desire to reopen
its borders to U.S. and/or Canadian beef.
The Korean government’s introduction of a traceability system in some of
its retail outlets and consumers increased confidence of
domestically-produced Hanwoo beef is expected to increase beef
consumption in 2005. If the increased inventory allows for retail prices
to drop, it would further boost the beef consumption when coupled with
the economy that is slowly beginning to recover. Higher production and
lower retail prices of Hanwoo beef cattle in 2005 will also help boost
beef consumption in 2005.
The focus of the Korean government’s policies has been less on
stimulating Hanwoo production and, more on enhancing food safety. The
focus includes development of a traceability program and environment
friendly livestock policies.
However, despite significant reduction in cattle prices and a sluggish
economy, USDA officials said Hanwoo beef wholesale prices remain six
times higher than imported beef and U.S. beef would fill a void of
“reasonably priced” higher quality beef. Australia is the leading
exporter of beef to Korea, however, it is mostly grass fed product that
isn’t as high in quality and isn’t being highly demand by Korean
restaurants or higher-end retailers.
Hanwoo products target the high-income consumer market. However, the
majority of Korean beef consumers who focused formerly on reasonably
priced but high-quality imported beef have now shifted to other
substitute products, such as pork and fish. — WLJ
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