USMEF Finds Success in Korea’s Second-largest Market for U.S. Beef & Pork

Mega Mart introduces branded U.S. beef

Lately, South Korean consumers have enjoyed an abundance of affordable options when it comes to red meat dishes due to domestic oversupply, but high-quality U.S. beef and pork continue to earn new followers through a regional USMEF strategy targeting unique niches in the Korean economy.

The second-biggest city in Korea, Busan is a burgeoning business and tourism destination, the world’s fifth-busiest seaport and home to the world’s largest department store, the Shinsegae Centum City. Economic growth and a relatively affordable cost of living combine to create an environment that supports growth opportunities for U.S. red meat products, and USMEF’s team in Korea is aggressively pursuing relationships in Busan to create a stronger connection with consumers.

One such opportunity developed by USMEF-Korea’s team involved first-time sales of U.S. beef through an important regional retail chain.

“There are a number of leading retail chains that serve the Busan region, and USMEF is partnering with Mega Mart to help differentiate it from the other national retailers and, at the same time, create a branded program for U.S. beef,” said Jihae Yang, USMEF-Korea director. “The chain operates 13 discount stores in the area, and USMEF has supported store-specific chilled U.S. beef promotions in about half of the stores each month since tight U.S. beef supplies don’t currently allow for a national promotion.”

USDA Market Access Program (MAP) funds were used for the program to introduce U.S. beef to Mega Mart’s customers through tasting promotions and point-of-sale materials.

Expanding U.S. chilled pork sales

Top Mart ad for chilled U.S. pork

Yet another Busan-based supermarket chain, Top Mart has featured chilled U.S. pork since 2008. The most recent USMEF promotion, funded with support from the Pork Checkoff, the Soybean Checkoff, Iowa Pork Producers Association and USDA’s MAP funds, utilized radio advertising and in-store tasting promotions as the 87-store chain has expanded its U.S. chilled pork sales to year-around. Last year Top Mart sold 640 metric tons (1.4 million pounds) of American pork, a 12 percent increase over the previous year, including 280 metric tons (nearly 794,000 pounds) of chilled pork.

“Eighteen countries compete for the Korean pork market,” said Yang. “Our goal is to capitalize on U.S. pork’s high-quality image and increase awareness among consumers.”

Yang also noted that while chilled U.S. beef is a relatively new commodity for Top Mart, it is beginning to make headway with the influential chain.

Pursuing food service opportunities

The retail sector is not the only avenue that USMEF is pursuing in Busan. The popular restaurant chain Irya Irya has adopted U.S. beef for the majority of its beef dishes, purchasing about 110 metric tons (242,000 pounds) annually, primarily rib fingers and outside skirt cuts for its lightly marinated Beef Joomuleok specialty. A two-week USMEF promotion of a barbecued outside skirt dish helped boost sales by 69 percent.

Yet another popular regional restaurant, Oryukdo Gawon, worked with USMEF and distributor Jinmi Foods to convert its barbecue duck meat menu to U.S. beef and pork after a trade team visit to the United States provided Jinmi Foods’ representatives with the confidence to support American red meat products for their quality and safety.

As a result, Mr. Choi of Jinmi Foods has become an advocate in the region for U.S. beef and pork, and Oryukdo Gawon alone has purchased more than 7 metric tons (nearly 16,000 pounds) of U.S. beef annually, and is in the process of changing its Canadian pork menu to U.S. pork.

“Since we are facing an oversupply of domestic beef and pork driving down Korean prices, we must look for opportunities to position chilled U.S. pork and beef where quality is more important than price difference,” said Yang. “In markets like Busan that approach is succeeding.”

South Korea is the sixth-largest market for U.S. beef in volume (No. 5 in value) through the first two months of 2014, purchasing 19,250 metric tons (42.4 million pounds) valued at $133.8 million, an increase of 17 percent in value on 14 percent lower volumes.

Korea is the No. 5 market for U.S. pork exports. So far in 2014 it has purchased 24,039 metric tons (53 million pounds) valued at $69.8 million, a 1 percent dip in value year-over-year on 6 percent lower volumes.