Suspension of US Beef Imports Hits Family Restaurants
The suspension of US beef imports scheduled to be imported later in March was finalized because of an additional case of mad cow disease in the US. This also affects the business of domestic family restaurants.
Since the Korean government postponed the approval procedure for beef imports because of the latest case, beef prices in the domestic market have slowly risen again. An expert says that there is also instability between demand and supply in the domestic market, and adds that restoring American beef imports fully depends on the history of the suspected cow from the US.
According to a domestic family restaurant market on March 20, due to the restriction of American beef imports, domestic beef prices have dramatically increased up to four times. In addition, in the present situation where there is not enough imported Australian beef and postponement of the restoration of US beef imports, the currently depressed family restaurant market will face one more business difficulty.
In particular, if this suspension is extended for a long time, the prices of low qualify Hanwoo (Korean beef) and Australian beef, compared to American beef, will increase, which can place a burden on households.
A major domestic beef distribution company says, “The Korean government’s announcement on restoring American beef imports made the prices down between 10% and 20%, and we expected the price of Australian beef would also down a little.” Another source in the distribution market said, “Unfortunately, it is expected that the suspension of American beef imports will spark domestic beef prices, as well as cause instability in demand and supply.”
No Jae Ik of Seojong Institute says, “It is forecast that there will be more domestic family restaurants that have no choice but to close their business or transfer their business in the event US beef imports are put off.”
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 / 입력시간: 2006. 03.21. 09:48
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