Meat and Livestock Australia (MLA) is beefing up its diplomatic ties with Korean farmers following the signing of a Free Trade Agreement last month.
Korean beef farmers are seeking compensation from their government for losses caused by its deal with Australia, which will cut tariffs on Australian beef exports over the next 15 years.
MLA’s regional manager for Korea, Michael Finucan, says its trying to reassure Korean beef farmers its not trying to compete with their local product.
“We’ve got a group of them coming out here soon to see our systems and what we’re producing is different to what they’re producing,” Mr Finucan said.
“They’ve got a similar product to Wagyu, its heavily marbled.
“We’re providing a much leaner product and a more affordable, every day segment of the market.
“So it’s just an education process to show them that we’re not a threat to their business overall.”
Australia is the largest supplier of beef to Korea.
US beef farmers are already benefiting from a FTA its country secured with Korea in 2012.
Mr Finucan says if Australia can ratify its FTA with Korea before the end of the year, it’ll narrow the US advantage.
“We’re currently sitting at 40 per cent tariff and the US are 32 per cent, therefore they’ve got an eight per cent advantage over Australia.
“By getting it ratified this year, we’ll have the first down payment, which will reduce the gap to 5.4 per cent difference.
“Then we’ll be in sync with the US, with reduction over the next 15 years.”
Last month Australian red meat shipments to Korea surged to the second highest April volume on record, at 12,066 tonnes.
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