South Korea expected to import more beef

According to the US Department of Agriculture’s (USDA’s) annual report on livestock and products in the Republic of Korea, total beef cattle numbers have continued to decline, as many smaller operations have struggled with high feed prices, "coupled with the government plan to compensate farmers that stopped raising cattle".​

Due to an increase in calf prices, farmers are also retaining their cows for breeding purposes, with 2015 beef production projected to decrease by 7.4% from this year’s level.

The higher prices for US beef were partly offset by preferential duty under the KORUS Free Trade Agreement – US beef is subject to a 32% duty, rather than 40% for beef from competing nations – however overall beef consumption is not expected to rise rapidly.

A sluggish economy, decreased dining out, and a diminished price gap between US and domestic beef prices, as well as the after-effects of the Korean ferry disaster earlier this year, which killed 294 people, have all contributed to the moderate estimations for growth.

According to the report, the bulk of US beef in Korea is consumed in hotels and restaurants, but with people eating out less, consumption of US beef has remained flat.

Consumption of imported beef is estimated to rise in 2015, as domestic production drops, said the USDA.

Pork imports are also expected to increase in 2015, as domestic production falls. Lower piglet production, caused by PEDv, as well as the recent discovery of a positive foot-and-mouth (FMD) case located on a swine farm in North Kyungsang are major factors affecting domestic prices.

However, the US is expecting its own supply to be tight due to the problems with PEDv this year, so competition with the EU will be increased.

While total imports of pork rose 7.3% during the first half of 2014, imports from the US fell 1.9%. Consumption is expected to drop slightly during 2014, due to many of the same factors affecting the beef market.