In today’s Beef Buzz, senior farm and ranch broadcaster Ron Hays speaks with Dan Halstrom of the U.S. Meat Export Federation about one of the biggest success stories for U.S. beef exports: South Korea. From rebuilding consumer confidence following BSE-related trade disruptions to growing online grocery sales, home meal replacements and a booming burger market, South Korea continues to offer opportunities for the U.S. beef industry. Part one of this conversation can be found here.
Rebuilding South Korea’s Confidence in U.S. Beef
Halstrom said South Korea was already one of the fastest-growing markets for U.S. beef exports in the early 2000s before the discovery of BSE in December 2003 disrupted trade.
When access to the market was being reestablished in 2006 and 2007, U.S. beef also faced significant public protests. “There was actually a time where there was protests against U.S. beef back in 2006, 2007, when access was being reestablished for U.S. beef,” Halstrom said. “It was an animal health issue, not a food safety issue.”
He explained that the controversy became tied to South Korean politics, with opposition groups using U.S. beef imports as an issue during a presidential election. “They also engaged the South Korean farmers, saying, you know, you’re gonna destroy them if you import your U.S. beef,” Halstrom said.
The protests grew substantially, with as many as 150,000 people gathering at one point in downtown Seoul to protest U.S. beef.
The U.S. beef industry and USMEF responded by shifting toward consumer education and rebuilding the reputation of American beef. “We spent years rebuilding our reputation and spent a lot of money and time on it,” Halstrom said. “But that investment paid off because now we’re looking at U.S. beef. The largest export market is Korea.”
Online Grocery Shopping Creates New Opportunities
One of the biggest changes Halstrom highlighted in South Korea is the rapid growth of online grocery shopping and home delivery. “I think Korea is the highest in the world,” Halstrom said. “You know, 30 to 40% of the consumer goods, including grocery, are sold online.”
He said heavy traffic in major cities like Seoul has helped drive consumers toward online shopping, making home delivery an important part of everyday life. “It’s really amazing that they associate the quality, but still buying it online,” Halstrom said.
Halstrom pointed to convenience, time savings and changing preferences among younger consumers as major factors behind the trend. He expects similar shopping habits to become more common in other international markets, including Taiwan and Mexico.
For U.S. beef, the shift creates opportunities to reach consumers through new retail channels.
Home Meal Replacements Expand Beef Demand
Another growing trend in South Korea is home meal replacement, commonly referred to as HMR.
Halstrom explained that these products are premade meals that consumers can purchase and prepare quickly at home while still enjoying a high-quality meal. “If you think of like a Costco or a Sam’s Club that has these pre-made dishes where you pick them up and take them home, and in 20 minutes you can microwave them or cook them, it’s something that’s quick but yet high quality,” Halstrom said.
However, the scale of the HMR market in South Korea is significantly different from what American shoppers might expect.
Halstrom compared U.S. warehouse stores, where prepared meals might occupy one section, with E-Mart stores in Korea. “You go into E Mart in Korea, and you might have 10 aisles. Five of the 10 are home meal replacement,” he said.
Online shopping makes the process even more convenient, allowing consumers to browse prepared meals, select what they want and have the store deliver the products directly to their homes.
U.S. beef products such as chuck rolls and short ribs can play a role in these meals, serving as ingredients in specialty prepared dishes.
South Korea’s Burger Boom Adds Value to U.S. Beef
Halstrom also discussed the growing popularity of burgers in South Korea, describing the trend as a relatively new opportunity in Asian markets. “Burgers are old news to the U.S. You know, this is 50 plus percent of our consumption, but it’s relatively new as a concept in especially in Asia,” Halstrom said.
Rather than shipping primarily finished burger patties, much of the U.S. beef used for burgers is exported as subprimals and processed into burger blends within the destination country.
Halstrom said these are often higher-end burgers made with cuts such as chuck rolls and briskets instead of traditional trim. “You might take a chuck roll and you might take a brisket and have a gourmet burger blend,” he said.
He added that growing interest in American-style barbecue is also helping create opportunities for U.S. beef in international markets.
Beyond expanding export volume, these products offer a chance to increase the value of individual beef cuts. “This is a good way to add value to some of these subprimals rather than just slicing them as you know for retail like you would normally think of,” Halstrom said.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR above for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
