Concern over Rising Beef Prices

SOUTH KOREA - Concern is rising over rising beef prices in South Korea.
calendar icon 19 May 2008
clock icon 1 minute read

A recent report by the Korean Agro-Fisheries Trade Corp., a semi-government organization, says the reason is the margins being taken by middlemen and retailers.

A report in the Korea Times says that beef animal that is sold for 5 million won or $5,000, could rise by 3 million won to 8 million won when it is broken down into cuts and turned into processed products before being placed on display for consumers at retail shops.

The Korea Times says the Korean Agro-Fisheries Trade Corp report cites a rancher in Hoengseong, Gangwon Province, the area from which the best Korean beef originates, who hands over his 'subprime' 650kg cow for 5.26 million won to middlemen called 'collectors'.

The collectors sell it to meatpackers, adding 340,000 won to the bill as fees for slaughtering, transportation and refrigeration plus margins. Now the price goes up to 5.6 million won before retailers take over.

The report says that it is retailers who jack up the price. They include 1 million won for rent and personnel expenses and add another 1.67 million won for profit margins. When consumers buy Korean beef in cuts, the final cost of the cow has risen to 8 million won.

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