The high-end market authorized the import after it stopped buying due to food and mouth disease (FMD) in 2002
The first beef shipment to South Korea, consisting of a set of samples totaling 200 kilos, was sent yesterday by plane. This high-end market recently lifted restrictions on the import of Uruguayan beef after it stopped buying a decade ago due to the FMD crisis.
The export was carried out following a visit by the the customer to San Jacinto abattoir in their Canelones district plant last November.
Gaston Scayola , vice-president of Frigorifico San Jacinto, interviewed at «Tiempo de cambio», radio program on Uruguayan Radio Rural, said that the meat cuts involved were both from the hindquarter and forequarter, e.g. chuck and eye round, although this does not mean that the market will demand these cuts in future. «What we are doing now is simply demonstrating quality, packaging, products and Uruguayan workmanship,» said the businessman.
He announced that a South Korean importer will visit Uruguay in the near future and that this is part of a series of steps aimed at achieving a deeper understanding of the Korean beef market.
Scayola noted that Uruguay’s National Meat Institute (INAC) is finalizing the details of Uruguay’s participation at a food fair in China, which is a regular visit. This will be followed by a similar event in South Korea, enabling a meeting between Uruguayan beef industry representatives and Korean customers. This meeting is indispensable for the steady advance towards the supply of a market characterized by good prices for beef.
It is estimated that there will not be a liquid market before this major Uruguayan export promotion action takes place next May, where the entire Uruguayan beef industry shall be present to contact potential customers.
Scayola said that, in his opinion, «from the second half of 2013 there may be some regular trade flows.»
It is also important to create conditions so that «we are price competitive», he said.
For the time being, and this includes yesterday’s shipment, the initial paperwork is being prepared as with all activated markets, as was the case when the 620 Quota (previously 481 Quota) was activated for Europe.
In relation to exports to South Korea, Scayola said that «we have 40% tax, which the countries with free trade agreements (FTA) with South Korea (like Chile) don’t», which hinders business.
«Today, the crucial factor is the European crisis, which currently keeps the meat packing industry numbers far from good, but while we wait for this storm to pass, we must continue to work on other markets,» argued the executive.
He also stated that there is «the difficulty of competing with Australia, whose steers are cheaper, has shorter freight distances and a trade history of many, many years.»
Some days ago, Chile sent its first beef shipment to South Korea, which enters this country tax free via FTA.
However, he stressed that today «Uruguay competes with the big players in the world meat industry thanks to its reliability and quality of service. We must find niche markets and work equally or more seriously than other meat producers in the world. »
The figures
1,435 million dollars entered Uruguay in 2012 due to the export of 376,921 tonnes (carcase weight) of beef.
