Domestic livestock price hikes drive surge in meat imports to South Korea

South Korea is seeing a substantial increase in imported meat as domestic livestock prices continue to rise sharply. The cost of Hanwoo beef, a premium domestic product, has seen its wholesale price jump by over 20% compared to the previous year. This price hike is occurring alongside a 13.3% decrease in the domestic supply of Hanwoo.

In response to the escalating prices of domestic beef, consumers and businesses are turning to imported alternatives. Beef imports climbed by 21.8% in July compared to the same month last year. Notably, imports from Australia saw a significant surge of 69.0%, while US beef imports decreased. Despite rising international prices, the volume of imported beef increased, reflecting the strong demand driven by domestic cost pressures.

The situation is even more pronounced in the poultry market. Imports of chicken meat have skyrocketed by 145.6% year-on-year. This dramatic increase means that July's chicken imports were nearly two and a half times higher than in the previous year. Imports of Brazilian chicken, in particular, saw an extraordinary rise of over 546%, while imports from Thailand declined.

While pork imports also saw a modest increase of 4.5%, the domestic pork market is showing a different trend with wholesale prices decreasing slightly. However, the overall livestock sector faces potential disruption from prolonged heatwaves, which have already led to significant animal deaths. While the government currently assesses the impact on supply as limited, extended heat could affect productivity and supply volumes going forward.