Beef Cattle Numbers Decline at South Korean Farms Amid Falling Prices

South Korean farms have seen a decline in beef cattle numbers in the first quarter of 2024 as prices continue to fall. The Eastern States Young Cattle Indicator (EYCI) eased by 30¢ to 596¢/kg cwt, signaling the downward trend in cattle prices.

The cattle market has softened across all indicators, with the Restocker Yearling Heifer indicator showing the most resilience. Yardings reached 84,609 head, marking the fourth largest yarding of the year. The Feeder Steer Indicator also eased by 17¢ to 317¢/kg liveweight, as feedlot buyers became more cautious and focused on light weight steers and medium weight heifers.

Cattle slaughter increased by 31,831 to 131,061 head, a 32% rise following the Easter break. Meanwhile, the sheep and lamb market has also experienced a decline, with yardings easing by 79,690 to 301,153 head, primarily due to a 34% reduction in lamb yardings. The Light Lamb indicator fell by 91¢ to 486¢/kg cwt, as the conflict in the Middle East and recent floods in Dubai impacted logistics and transportation costs for light lambs destined for the region.

The combined sheep and lamb slaughter reached a record high of 692,682 head, increasing by 125,918 head. This surge in slaughter numbers comes as producers respond to the challenging market conditions and rising costs.

Why this matters: The decline in beef cattle numbers and falling prices at South Korean farms highlights the ongoing challenges faced by the country's livestock industry. As global events such as conflicts and natural disasters impact trade and logistics, farmers are forced to adapt to the changing market conditions. The record-high combined sheep and lamb slaughter further underscores the difficulties faced by producers in the current economic climate.

The South Korean government has been monitoring the situation closely, with officials expressing concern over the potential impact on the country's food security and agricultural sector. As the first quarter of 2024 comes to a close, farmers and industry stakeholders are bracing for further challenges in the months ahead, hoping for a stabilization in prices and improved market conditions.

Key Takeaways

• South Korean beef cattle numbers declined in Q1 2024 as prices fell.
• Cattle market softened across indicators, with Restocker Yearling Heifer most resilient.
• Sheep and lamb market also declined, with light lamb indicator falling 91¢.
• Combined sheep and lamb slaughter reached record high as producers adapt to challenges.
• South Korean government monitoring impact on food security and agriculture sector.