US beef import soars on rising hanwoo price

[THE INVESTOR] US beef imports increased significantly as South Koreans turned away from their expensive local beef hanwoo, industry data showed on July 14. 

US beef imports increased by 25.7 percent from January to May this year from the same period last year, to reach 61,062 tons, according to a report by the National Agriculture Cooperative Federation, better known as NongHyup. 

South Korea became the third largest beef importer in the world during the period, after Japan and Mexico. 

In May alone, the US beef import stood at 61,062 tons, an increase by 58.8 percent year-on-year. 

In June, hanwoo was sold at an average 19,142 won (US$ 16.89) per kilogram, an increase by 20.8 percent from the previous year. The hanwoo price is about 2.5 times more than US beef. 

According to industry insiders, rising distribution costs and fewer hanwoo cattle are part of the reason behind the soaring price tag. 

“The situation has worsened due to abolished tariffs, as a result of the US-Korea FTA, and the declining number of hanwoo cattle,” Hwang Myung-chul from NongHyup said. “For US, it’s a good opportunity to expand marketing of their beef here.”

“It is difficult to increase supply of hanwoo immediately,” said Hwang and stressed the need for the government to come up with solution to stabilize the price.

By Ahn Sung-mi (sahn@heraldcorp.com)