Pork Demand Chops into Korean Beef Market

by 5m Editor
20 July 2012, at 7:42am

AUSTRALIA - Marketing and research body Meat and Livestock Australia has had to revise down its expectations for Australia's two largest beef markets.

ABC reports that Japan's forecast demand is down by 5 per cent, and Korea's demand for Australian beef will slip by 28 per cent from last year.

In Korea, beef has met stiff competition from pork imports, after the foot and mouth disease outbreak two years ago caused a big cull in the domestic population of pigs.

MLA chief economist Tim McRae says the reduction in demand for Australian beef is off a high base.

"This is a market that probably exceeded expectations in the last few years," he said.

"A lot more pork in their market. And that's a response to the government's decision to increase supplies, following a big slaughter of pigs, with their FMD (foot and mouth) outbreak a couple of years ago.

"But also their own cattle slaughter is up 35 per cent this year, which is putting a lot of their own product in their own market."