SOUTH KOREA – This is a weekly report by the USDA’s Agricultural Marketing Service (AMS), looking at international developments concerning the poultry industry. This week’s review looks at the poultry industry in South Korea.
South Korea is experiencing rising inflation and raised its seven-day repo rate in March to counteract the rising prices. However, the Bank of Korea stated in April it still expects consumer prices to keep going up due to increased economic activity and higher oil prices. However, some of South Korea’s inflationary pressures may have been influenced by February 2011 government total foot and mouth (FMD) loss estimates of US$2.7 billion for their hog and cattle industries resulting in higher domestic pork prices. At the same time this winter, South Korea experienced an outbreak of highly pathogenic avian influenza H5N1, resulting in the culling of more than five million birds, which also helped chicken prices to trend higher.
The Ministry of Strategy and Finance (MOSF) held a meeting on 22 April 2011 to discuss the stabilisation of consumer prices. The South Korean press release went on to state that even though livestock prices were gradually stabilising as outbreaks of FMD have abated and imports have grown, chicken and pork prices continued to be higher than the yearly average. They went on to state plans were being made to introduce a quote tariff for chicken and duty-free imports of pork will continue to enter the market.
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