The report, 'Korean Beef Market: Developments and Prospects', was released today by ABARE Executive Director Phillip Glyde.

"The temporary ban on imports of US beef by Korea, and increased import demand for a greater range of beef cuts, contributed to a significant rise in the volume and prices of beef cuts from Australia,” Mr Glyde says.

The reopening of the South Korean market to US beef exporters in 2008 under a new beef import protocol has led to increased Korean beef imports from the United States.

However, the continued growth in total Korean beef imports has minimised the adverse effects on Australia of increased US beef exports to Korea.

“Despite the increase in US beef imports, sales of Australian beef remain strong in the Korean market.

Australian beef sales accounted for 60 to 70 per cent of total sales of imported beef in major retail stores, such as department stores and large supermarkets, during the first three months of 2009,” Mr Glyde says.

“Currently, imported beef accounts for more than 50 per cent of the beef market in Korea.

“The demand for Australian beef in the Republic of Korea is expected to ease as consumer confidence in the safety of US beef gradually increases.

"However, current trends in Korea in favour of clean and safe food are likely to support the position of Australian beef exporters in that market.

“Over the medium to longer term, beef consumption in the Republic of Korea is expected to increase further, in line with income growth.

"This, together with the clean and safe image of Australian products, offers the prospect of future growth in Australian beef exports to the Republic of Korea.

“Australia will need to continue to pursue strategies aligned with consumer preferences and a clean and safe image in order to compete effectively with US beef in the Korean market.”