FTA Threat Enough To Hurt Beef Producers
US - South Korea and the United States have yet to ratify a bilateral free trade agreement (FTA), but South Korean beef producers are already in a state of collapse. Wholesale prices of South Korean beef, or hanu, continue to plunge as producers dump beef on the market, fearing over an influx of American and Canadian beef.
4 May 2007
2 minute read
According to data by the National Agricultural Cooperative Federation (NACF), the average wholesale price of a female hanu calf dropped 27 percent, to 2,101,000 won, as of May 2, compared 2,878,000 won in January. The price of a 600-kilogram female hanu fell 13 percent to 4,767,000 won from 5.48 million won. The price of a male hanu calf declined 13.3 percent to 2,012,000 won from 2,321,000 won.
The plunge in wholesale prices is seen a reflection of fears by livestock farmers after the South Korea-U.S. FTA. Typically, it takes two to three years for a calf to grow to a 600-kilogram hanu. So, the price decline is affecting female calves, male calves, cow and bulls, in that order.
In fact, the mass-selling of hanu is a nationwide phenomenon. Sim Seong-gu, 54, a livestock farmer at Hongseong in South Chungcheong province, said, "Farmers are struggling to sell cattle. In general, a bull is castrated after two years. But, prices are falling further as farmers are selling bulls without castration." Min Jae-gi, head of the Hongseong Hanu Association, said, "Some even butcher cows in pregnancy. Farmers aren't willing to raise cattle due to the worries." Jang gi-su, 49, who has raised cattle for 13 years in Namwon of North Jeolla province, said, "In the past, I can buy three calves after selling two cows. But now, I can buy four calves when I sell two cows."
