Question

Essay Question: Is South Korea an attractive market for Australian beef? Please focus on social/domestic (e.g. households, restaurants, retail) and political aspects to justify your answer(s)

Note: An analytical, rather than heavily descriptive, essay is required. Use examples and evidence to support your argument.

Answer 1

In the global context, Australia is the holds second position in beef production and sixth position in beef exports. So it's pretty clear that Australia has comparative advantage over many countries in terms of beef production and exports.

At present south Korea is Australia's third largest Export market.ln 2018,south korea imported over 175000 tonnes of Australian beef and 16000 tonnes of Australian lamb,worth a total of 1.25 trillion Korean won.

First of all lets look at the trade policy measures which makes south korea an an attractive market for Australian beef.

* KAFTA

*Korea Australia free trade agreement was signed between both of the nations

* The agreement sought to reduce trade and investment barriers between Australia and South Korea.

* The agreement came into force on 12 December 2014.

* It is one of Australia's most comprehensive trade agreements as it delivered Australia with significant market access to South Korea and tariff liberalisation.

A good , especially if a food item, becomes popular in the domestic market only if it's accepted by the domestic market. There are some factors which makes Australian beef popular among the korean consumers.

*South Korean consumers regard Australia as a clean and green Environment.

* So they consider Australian beef to be higher in quality.

* Meat and Live stock Australia launched marketing campaigns in South Korea and working closely with korean retailers, Homeplus and E- mart traders has been a part of the campaign.

* Korean consumers have shifted their diet towards protien and less starch and rice.

*It's combination of Economic growth and consumer confidence in Australian beef.

Apart from the factors mentioned above there are some another factors which makes south korea import beef in general

* Korean consumers love meet and meet is a part of the food habits of the korean households.

* In Korea beef is the most prized compared all the meets with cattle holding bearing an important cultural significance in korea

*The demand for beef from households, retailers and high profile restuarants have been pretty high.

* Hanwoo meet produced by Korea is very expensive and its supply is limited compared to the high domestic demay

* There for imports are necessary to fill the gap

* Korea's meet consumption is forecast to grow further highlighting the on going need for quality imports.

However Australia is facing cut throat competition in the market especially from US. South korea exported US beef worth 1.84 billion $ in 2018 which is a sign that Australia has some inconsistencies in beef supply .US also has a free trade agreement with south korea.There for Australia must have to make more efforteffort to safeguard it's beef Exports to South Korea.