From 1-15 November, Australia exported 5,839 tonnes swt of beef to Korea, with chilled product making up 26% (DAFF).
Some Australian beef exporters have reported increased demand, with Lunar Year approaching and concerns surrounding forward supplies, with the expectation that a number of Australian processors will close in December and January for maintenance. In the past two months, tight supplies from Australia and the strong A$ has impacted beef availability and prices.
The Korean economy performed well in the first half this year, but slowed in the third quarter reporting on only 0.7% GPD growth (Bloomberg). In October this year, Korean consumer confidence dropped to a 16-month low and consumer prices surged 4.1% year-on-year in the same month (Yonhap).
The rapid price rise raised concern about possible inflationary pressure on the economy. On 16 November this year, the Bank of Korea increased the country’s interest rate by 0.25 percentage points – the second increase in 2010.
Source: Meat & Livestock Australia