Beef Industry in Korea

Beef Industry in Korea



Beef Industry in Korea

Overview of the beef trade of South Korea

The access to U.S. beef from South Korea is one of the major issues in the debate over the Korea-U.S. Free Trade Agreement known as KORUS FTA. In 2003, South Korea remained the 3rd largest market for American beef products but it all changed when the first ever cow got infected with disease known as mad cow disease. After this incident, South Korea then suspended trade with US for some time. The value of Australian exports of beef is being affected as well by the high price of Australian dollar and the low amount of meat exported between January and August last year have been reduced by 4% to 1.995 million euros. Throughout 2010 the Australian dollar has appreciated by 18% to trade at $ 0.9 / USA. This disappointment is compounded by the shortage of beef for export due to lower exports and, therefore, less meat for export. The value of meat exported from Australia to U.S. during the first 8 months of 2010 was 411 million euros, 21% less, while in the case of Japan, perhaps the most important market for Australia, shipments have been reduced by 11%. However, Australia has exported more beef to other markets such as South Korea, which has bought up 24% of Australian beef, and Russia has bought 134% more meat in this country ocean. (Beekman, 2008)

Condition of Beef Industry in South Korea

In the late 1990s, South Korea was a growing and important market for major beef exporters, particularly the United States of America. In 2003, beef imports had the percentage of 75% of South Korean beef consumption which the U.S. shipments that year alone supplied huge amount of items. In that particular year, South Korea was the third-largest export market for U.S. beef. Beef exports contributed 28% of all U.S. agricultural exports to Korea. The quantity of US beef exports was very high during this phase. (Frewer, 2004)

Problems faced by Korea in their beef industry

After the first U.S. case of bovine spongiform encephalopathy (BSE), or mad cow disease, it was discovered in a Canadian-born cow in Washington State in December 2003. As a result, South Korea and many other countries banned imports of U.S. beef. BSE is a fatal, neurodegenerative disease of cattle thought to arise from the consumption of animal-derived protein supplements added to feed. Scientists believe that this disease can affect the humans badly if it would be transmitted to them after the consumption. It can affect the brain, spinal cord, liver, heart and many other organs which can even take the life of a person. (Roberts, 1991)

Trade Statistics of Korea's Beef with its trading partners

Although it seems unlikely, after almost a year of high-level negotiations between both governments and the announcement of reaching an agreement between the two countries carried by all the international media, it seems that the future ranked the largest Free Trade Agreement, after NAFTA, ratified in 1993; ...