Beef prices soar as supply shrinks, hitting domestic and imported cuts alike

Beef prices are squeezing dining costs. With prices surging on the back of reduced slaughter volumes and a weak won, attention is turning to the government's grocery support policy.

According to livestock distribution data from the Korea Institute for Animal Products Quality Evaluation, the consumer price of grade-1 hanwoo tenderloin stands at 15,031 won ($10) per 100 grams this month, up 18.4% from a year earlier. The tenderloin price held in the 12,000-won range last year before climbing into the 13,000-won range in the second half of 2025. It crossed into the 14,000-won range in March and broke through 15,000 won this month. Sirloin rose 17.1% to 10,800 won per 100g, while brisket climbed 15.5% to 6,668 won.

The increases reflect a drop in slaughter volumes driven by a shrinking cow herd. According to the Agricultural Outlook Center at the Korea Rural Economic Institute, the number of beef and dairy cattle stood at about 3.218 million head as of March, down 4.9% from a year earlier. Hanwoo slaughter volume is forecast to fall 9.0% year-on-year to 862,000 head this year, while the hanwoo wholesale price is expected to rise 9.4%.

Consumption is also declining. Average household purchases of hanwoo fell 3.2% year-on-year as of April, with cuts such as brisket and shank down 10.1%. A sales-volume index for beef — both hanwoo and imported — at restaurant outlets also fell 10.1 points year-on-year in the same month.

Imported beef, long seen as a more affordable alternative, is no longer offering much relief. The consumer price of chilled US chuck eye roll reached 4,246 won per 100g this month, up 27.6% from a year ago and 51.5% above the multi-year average. Chilled Australian chuck eye roll came in at 3,743 won per 100g, up 24.4% year-on-year and 44.9% above the multi-year average.

According to the US Department of Agriculture, total US beef supply this year is projected at 31.1 billion pounds (about 14.1 billion kilograms), down 2.5% from last year and the lowest since 2019. A persistently weak won is compounding the pressure. The Bank of Korea's May export-import price index showed that the beef import price index rose 16.0% year-on-year in dollar terms and 23.9% in won terms.

Meanwhile, the government plans to subsidize discounts across all agricultural, livestock and fishery products starting this month. E-mart, Lotte Mart, SSG.com and other major online and offline retailers are also holding promotions this month offering up to 50% off key hanwoo cuts.