Key Asian meat market in turmoil

Monday, February 28, 2011

The outbreak started in late November. By mid-January, South Korea had culled about 15 per cent of the national livestock herd because of foot-and-mouth disease, along with three per cent of its poultry while fighting an avian influenza outbreak. Most animals killed were cattle. The beef supply was unstable because markets were closed and transportation restricted. South Korea was already a net importer of pork, beef and chicken.

An early January press release from the Canadian Beef Export Federation expounded upon the growth in exports "into key markets in Asia and Mexico in the first nine months of 2010," but did not mention South Korea, where it also has an office.

Meanwhile, the Canadian Pork Council (CPI), representing producers, The Canadian Meat Council (packers) and their jointly owned marketing arm, Canada Pork International, were calling on federal trade officials to reopen trade talks with Korea that had been interrupted in 2008. CPI's president, Edouard Asnong, fears that Canada's pork trade with Korea, valued at $125 million, will disappear since other countries have signed deals with Korea.

"The business cannot be replaced overnight," he said.

Korea has a population of 50 million and is Asia's number four economy. Meat packing and rendering in Canada is a $21 billion business. BF