The demand for various Australian beef cuts in the Korean wholesale market slightly increased this week as a result of low stock levels, particularly for blade and some chuck roll.
From January to June this year, exports of Australian chuck roll to Korea dropped 20% year-on-year, while blade volumes during the same period decreased almost 60% on last year.
The average indicative price for blade in Korea’s wholesale market has steadily risen to become the highest quoted price this week since November 2011.
Low consumer demand, however, continues to prevent Korean beef importers from purchasing large volumes.
From 1-23 July this year, Australian exports to Korea totalled 6,975 tonnes swt, with monthly totals expected to be well below exports in July last year at 11,544 tonnes swt or in July 2010 at 11,948 tonnes swt (DAFF).
Ahead of Chuseok, however, overall trading activity remains unusually slow, as various companies still carry high meat stocks that affect their purchasing power, while end user demand for this peak period remains uncertain.
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