Canadian Beef and Veal Industry Embraces Opportunity to Renew Trade Relations with South Korea

Opening of Market Will Support Entire Value Chain

CALGARY, Jan. 20, 2012 /CNW/ - "The entire beef and veal industry is relieved and energized over the Canadian Government's recent announcement confirming the re-opening of beef and veal trade with South Korea," says Brad Wildeman, Chair of Canada Beef Inc. and a feedlot operator from Lanigan, Saskatchewan.

"Unfortunately our industry has been absent from this valued market for over eight years. But together with the Government, we remained confident and resilient in our ability to trade once again with South Korea. Today, we are optimistically awaiting a green light to begin shipments - and we will be ready!"

On December 30th, the South Korean National Assembly passed import health requirements to allow for the importation of Canadian beef and veal from cattle under 30 months of age. As part of the country's legislative process they then promulgated the import health requirements, issued a list of approved beef establishments for export and formally accepted the import health certificates. Today the Canadian Government received notification that this process is complete, and South Korea's borders are open to Canadian beef and veal.

The Canadian Government and industry have been actively seeking re-entry into South Korea ever since the market was closed due to the discovery of BSE in Canada in May, 2003. With this agreement, South Korea will be one of the last significant markets to re-establish beef and veal trade with Canada. Prior to BSE, South Korea was Canada's fourth largest export market at approximately 17,300 tonnes worth $60 million.

"With re-entry, we believe the Canadian industry is positioned to benefit from exports of 6,500 tonnes worth about $30 million by 2015, with potential to grow to 14,000 tonnes worth $65 million by 2020. While these are relatively modest figures compared to Canadian beef and veal trade with some other countries, it does provide additional sales opportunities for our high quality beef and veal and helps diversify our export customer base," says Wildeman.

As part of its commitment to growing market opportunities for Canadian beef and veal producers, Canada Beef Inc. has kept a presence in the South Korean market in order to maintain and nourish relationships with key industry partners and supporters of the Canadian beef and veal industry.

"Because we have maintained our marketing expertise in South Korea over these absent years, we are well positioned to implement our re-entry and growth strategy. This allows us to quickly take advantage when the border is officially open for trade," says Canada Beef Inc. President Rob Meijer.

"Canadian beef and veal is well known internationally for its high quality and safety and we look forward to meeting the South Korean customers' demand for premium quality Canadian grain-fed beef and veal.  We equally call on our Canadian packing industry to ensure this demand is met with ample supply in order to maintain our commitment to the South Korean market," stated Meijer.

Canada Beef Inc. is the cattle producer-funded and run organization responsible for domestic and international beef and veal market development. It has offices in Canada, Mexico, Japan, Hong Kong, China, Taiwan and South Korea.

Brad Wildeman
Chairman
Canada Beef Inc.
[phone]

Rob Meijer
President
Canada Beef Inc.
[phone]

Ron Glaser
VP, Corporate Affairs and Operations
Canada Beef Inc.
[phone]