Beef Production System in Korea

Table of Content

• Overview of Republic of Korea• Beef consumption• Domestic Beef Production and Imported beef• The Hanwoo Beef• Future Trends

Republic of Korea

Area – 100,210 km2

Population – 50 mln

Density – 501.1/km2

GDP (PPP) – 33.156/capita

Fertility rate – 1.3

Republic of Korea

Very fast economic growth – since 60's Growing demand for meat Total meat consumption - 54.1 kg/capita/yr Domestic production – Hanwoo Imports – USA, Australia, New Zealand

Beef consumption

Domestic vs. imported beef

Consumer behaviour

• consumer preferences for beef are largely influenced by quality, freshness and safety

• other factor is whether the beef was imported or domestic Hanwoo

• unique preference for high quality domestic Hanwoo beef

• colour of meat is very important• interest of hygiene and safety rose after the BSE event

in 2001• chilled and unpackaged beef is prefered over packaged

beef

Domestic Beef Production and Imported beef

Beef production in Korea• Prior to the mid-1970s, beef production was not

particularly important in the Republic of Korea, as Korean native cattle were raised and used mainly for draft animals on farms.

• 1970s, rapid economic development resulted in moving away from agriculture toward the expanding manufacturing sectors.

• Beef production was perceived by many farmers because of the rapidly increasing demand for beef, particularly in urban areas.

Factors affecting beef production and importation

Year Event Market Impact1976 Korean beef imports commence Government control volume1985 All beef imports are banned Domestic beef prices rise to protect

local industry

1988 Beef imports resume under quota system

US, Australia and New Zealand beef imports resume

1997 Asian financial crisis Beef imports drop 45% in 1998 2001 Implementation of beef import

liberalizationPrivate sector can import beef under 40% tariff

2003 US and Canadian beef banned due to BSE

Beef imports drop 51% in 2004 and Australia dominates market share

2007 US receives "controlled risk” BSE status

US beef is imported again

2008 US & Korea sign new agreement on beef trade

Korea imports almost 32,000 tonnes swt of US beef in 6 months

Beef supply in KoreaUS Import ban 2003

Import liberalizati

on 2001

Asian Financial

crises 1997

Beef import banned 1985

Cattle farm households and Cattle numbers

Beef imports by leading suppliers

Beef Imports Market share

South Korea's Luxury Cattle – Hanwoo Beef

• Bos taurus x Bos zebu• Known for its high degree of

marbling• Brown coat color• Concentrate diet in fattening

period for marbling effect• Agricultural by-products used in

TMR• Ave. of 31 months (marketing

weight of 694 kg)

”Super Hanwoo Cow”

• The clones were produced from the body cells of a 3-year-old ``super'' hanwoo cow from Incheon, Gyeonggi Province

• weigh up to a ton, larger than average hanwoo cows (600 to 700 kgs)

Advancement in technology for cloning hanwoo cattle, a Korean native breed- Korea Times, 2006

Consumer’s perception of Hanwoo Beef

• Most expensive beef in Korea• Fresher & better quality than

imported breeds• High marbling, more palatable

(eating quality)• Higer ratio of n-6/n-3 than

Australian Angus beef

Carcass Grading System for Hanwoo Beef

• Yield Grade (A, B, and C), carcass weight, sub. fat thickness, LEA, and maturity

• Quality Grade (1++, 1+, 1, 2, and 3), meat and fat color, firmness and texture , and marbling score (Beef Marbling Standard, BMS) in Longissimus dorsi (LD) muscle at the 13th rib

Premium Class Hanwoo Beef

• BMS score of 8 or 9 = QG 1++ or 1+• Premium class or High Quality Beef– Lower shear force value than other QG– greater scores in tenderness, juiciness, flavor, and overall

likeness of LD muscles than imported beef

Future trends Demand for meat will most likely increase Hanwoo production will most likely remain the

same Imports most likely to increase