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USDA International Egg and Poultry


27 February 2014

USDA International Egg and Poultry: South KoreaUSDA International Egg and Poultry: South Korea

Total broiler meat consumption in 2014 is forecast to increase 2% to 806,000 metric tons (MT) over 2013.
USDA International Egg and Poultry

The increase in consumption is due to an anticipated surge in demand due to the World Cup soccer tournament in August 2014 along with the price competiveness of chicken products compared to other livestock products. International sporting events have a big influence over South Korea’s chicken consumption. During the last World Cup event in 2010 chicken consumption increased 10% resulting in an expectation for demand to increase during the 2014 World Cup.

Also, because the number of single person households and working couples are increasing, the cut chicken market is expected to increase due to ready-to-cook products and small packaged chicken product sales.

However, since the first outbreak on January 16, 2014 of H5N8 consumer demand dropped by as much as 70% until the start of the Winter Olympics. After the start of the Winter Olympics some parts of the country found increased poultry sales ranging 11%- 31% on various raw and cooked items with the biggest increase on duck meat. Average retail prices per kilogram (kg) on chicken on February 7, 2014 were 7% lower than the previous month. Meanwhile, the average price per kg of beef ribs on February 7, 2014 increased 2% over the same period of time in January 2014.

In response to the outbreak of H5N8 South Korea to date has culled 3.2 million chickens and ducks on 154 farms. A new suspected, but unconfirmed, case of H5N8 was recently discovered. South Korea’s last major avian influenza outbreak was of the H5N1 type from 2010-2011 in which 6.5 million poultry were culled.

Broiler meat imports for 2014 are forecast to be 125,000 MT, 4% above 2013 helped by demand from the World Cup and a steady demand from young consumers. A reduced duty under KORUS FTA to 14% for the United States (U.S.) and an expected decrease in international grain prices in 2014 have resulted in U.S. chicken exports (mostly frozen bone-in leg products) to South Korea to increase slightly.

Chicken meat production for 2014 is forecast to increase slightly due to increased production capacity by new and existing producers and because of demand during the World Cup tournament.

Under the KORUS FTA South Korea’s base tariff rate (originally 20%) with the U.S., on the dominant frozen chicken leg quarter category will disappear by 2021 and frozen breasts and wings by 2023. The 18% tariff on frozen turkey cuts will be eliminated by 2018.

Sources: USDA/FAS GAIN Report KS1342; USDA, Foreign Agricultural Service Official USDA PSD Online Estimates; The Poultry Site; 02-14-2014 International Egg & Poultry Review; various news sources



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