U.S. beef exporters welcome S. Korea retailers stocking U.S. beef

By Hwang Doo-hyong
WASHINGTON, Nov. 25 (Yonhap) -- U.S. beef exporters Tuesday welcomed the decision
by South Korea's three major retailers to put U.S. beef on the shelves again this
week after years of limited imports over concerns about mad cow disease.

"We are very pleased that E-Mart, Home Plus and Lotte Mart have made the decision
to re-enter the market with U.S. beef," Philip Seng, president of the U.S. Meat
Export Federation, said in a statement posted on its Web site.
The Korea Chainstores Association, which encompasses about 300 outlets of the
three discount store chains across South Korea, said earlier in the day they will
begin selling U.S. beef from Thursday in response to strong consumer demand for
cheaper beef amid the protracted economic woes.
South Korea was the third biggest export market for U.S. beef, with over US$800
million in shipments annually, accounting for 21 percent of U.S. beef exports,
until 2003, when the Seoul government banned U.S. shipments due to a case of mad
cow disease.
Shipments resumed in October 2006, but were suspended shortly as some of the
shipments contained banned parts.
The South Korean government of pro-American President Lee Myung-bak struck a deal
in April with the U.S., only to invite weeks of street rallies against the U.S.
beef imports.
In June, the sides made new arrangements for shipments of beef from cattle less
than 30 months old to reduce safety concerns, but major South Korean retailers
would not dare sell U.S. beef due to strong opposition from activists who often
staged rallies in front of outlets.
"USMEF has been actively urging all of the big chains to resume U.S. beef sales
since mid-summer," Seng said, hoping that other retail and restaurant chains in
South Korea will follow suit before the Lunar New Year peak consumption period in
late January.
The USMEF estimates that 40,000 tons of U.S. beef is currently stockpiled in
Korea, the equivalent to about two months of supply at the consumption rates in
South Korea in 2003.
The price of U.S. beef is expected to be lower than that of Korean and Australian
beef sold in South Korea.
Industry analysts, however, are still uncertain about the price competitiveness
of U.S. beef, citing the depreciation of the South Korean won against the
greenback in recent months after the U.S.-initiated financial crisis hit the
world's 13th biggest economy.
hdh@yna.co.kr