Meat and Livestock Australia believes Australia can retain between 20pc and 30pc more of the Korean beef market than what it had in 2003 when US product was banned.
This is despite the weekend announcement that South Korea will progressively remove all barriers to the sale of US beef.
In a statement today, MLA says that the resumption of US beef imports will help Korea recover from the decline in overall beef consumption which followed the closure of the market to US beef in December 2003.
Once the import of US beef resumes, MLA anticipates Australia's market share will still be around 20-30pc above the level Australia held prior to the 2003 BSE outbreak.
The Australian beef industry has been using a platform of Australian beef "clean and safe" in all marketing activities.
MLA says the industry will continue to perform a role as a partner of the Korean livestock and beef sector by providing a safe product which complements local Korean beef rather than competes with it, and 'tops-up' Korea's domestic supply shortfall (Korea is only about 40pc self-sufficient in beef production).
However, the full resumption of beef trade between the United States and South Korea is anticipated to pave the way for ratification of free trade agreement between the two countries - something which could lead to a $US600m expansion in US beef sales.
American agriculture widely welcomed the news that there will be a full resumption of beef trade with South Korea, given the issue of beef imports has remained a sticking point in approval of a free trade agreement with South Korea, on which the Bush administration completed negotiations in March 2007.
Secretary of Agriculture Ed Schafer said the announcement was a win for science-based rules.
"That South Korea has fully complied with international trade standards regarding beef and beef products is great news for America's ranchers and beef industry," he said.
"By allowing complete market access for US beef and beef products from cattle of all ages, South Korea has made a decision that is based on science and in line with international guidelines.
"As a result of a constructive and steady dialogue, Korean consumers will again have access to safe, affordable, high-quality beef at a time when global commodity prices are tightening."
He also pointed to the possibility that the US Government may now press ahead and ratify the FTA with South Korea.
"Before the Korean market was closed to US beef and beef products in December 2003, following the detection of a case of BSE in the state of Washington, Korea was the third largest export market for US beef and beef products, with annual sales more than $815 million," he said.
"Since that time, Korea's economy has grown and more of its population enjoys increased incomes and a better way of life.
"That is why Congress's immediate consideration of the United States-Korea Free Trade Agreement (KORUS FTA) is important.
"Once the KORUS FTA is ratified and implemented, and the current 40pc tariffs on US beef are fully lifted, the FTA is expected to generate tariff savings of approximately $US 500 million a year for US beef exporters.
"The International Trade Commission estimates that under the FTA, US beef exports to South Korea could increase by $US600m to $US1.8 billion."
National Cattlemen's Beef Association chief economist, Gregg Doud, agreed South Korea could potentially represent a $US1b market and could grow to be the United States' top beef customer.
And American Farm Bureau Federation president Bob Stallman said that now that "this obstacle with Korea has been overcome, AFBF urges swift congressional passage of the Korea free trade agreement".
SOURCE: FarmOnline and Feedstuffs, USA.
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