Audio: Strong Performance in South Korea for U.S. Beef, Pork

One of the top-performing markets for U.S. beef and pork in 2014 has been South Korea, where exports have posted strong year-over-year gains. Beef exports to Korea in the first half of the year totaled 56,478 metric tons – up 11 percent from a year ago – valued at nearly $380 million, up 40 percent. On the pork side, first-half exports were up 31 percent in volume (77,209 metric tons) and 48 percent in value ($236.3 million).

Dan Halstrom, USMEF senior vice president for marketing and communications, explains that although the U.S. industry has come a long way in combating misperceptions among Korean consumers about the safety of U.S. beef, this is still an ongoing challenge. Marketing branded U.S. beef products has been a helpful strategy in Korea, because consumers like the fact that they are able to learn more about the origin and unique attributes of these products at the point of sale.

Halstrom notes that U.S. pork is performing well in Korea despite an influx of European pork into the market. Pork from the European Union has been shut out of the Russian market (traditionally the EU’s largest export destination) since January, which has led to lower prices and more aggressive marketing in Korea by European suppliers.

TRANSCRIPT:

Joe Schuele: This U.S. Meat Export Federation Report looks at South Korea, which has been one of the top performing markets for U.S. beef and pork in 2014. Dan Halstrom, USMEF senior vice president for marketing and communications, has more details - beginning on the beef side.

Dan Halstrom: We’ve seen pretty good beef growth year on year. Up 11 percent in volume and 40 percent in value, and it’s really coming across on all sectors. You look back on post BSE, the confidence factor was in the single digits, but we’ve come back with a vengeance from there. A lot of our work is centered around the safety and confidence aspect of U.S. beef. That being said we still have work to do; there is still a contingent in Korea that still holds the past with BSE against us. One of the things we are doing to combat this misperception as to the safety of U.S. beef is a focus on the branded beef. We have everything from large guys promoting their top choice brands, to smaller members promoting American wagyu brands, and we are seeing success across the board in all the different branded categories.

Joe Schuele: Halstrom notes that U.S. pork is performing very well in Korea, despite an influx of lower priced European pork into the market.

Dan Halstrom: On the pork side the results are very good as well, up 31% on volume and about 48% on value. The further processing sector would be the primary sector that we are seeing the most growth, and retail is seeing growth as well; but, the competition is fierce especially from Europe. With the Russian market being closed to European exports we see very very low prices out of Europe, especially on items like belly’s, but to me that is pretty encouraging because in the light of low prices from one of our biggest competitors, and during a time where there are higher prices in the U.S. our numbers are still up. So I think the story of pork is very, very positive.

Joe Schuele: For more on this and other trade issues please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.