The Ministry of Agriculture, Food and Rural Affairs said in its "livestock product distribution structure improvement plan" on the 13th that it will shorten the average raising period for premium Korean beef, known as hanwoo, to 28 months. The idea is that cutting the current 32-month period by four months would lower production costs by 10%, which could reduce consumer prices for beef.
The average raising period for premium Korean beef, known as hanwoo, is much longer than the U.S. cattle raising period, which averages 18 months. As the raising period grows longer, production costs rise and become a factor that increases consumer prices. Experts said the raising period for premium Korean beef, known as hanwoo, has become relatively long due to the beef grading system based on fat content—commonly called "marbling"—and consumer preferences.
◇ Pursuit of a "marbling" strategy for premium Korean beef, known as hanwoo, as U.S. imports increase… raising periods lengthen
Premium Korean beef, known as hanwoo, is mainly raised as steers. According to the Ministry of Agriculture, Food and Rural Affairs, the average shipment age for premium Korean beef, known as hanwoo, steers rose from 30.4 months in 2007 to 31.1 months in 2017 and 31.6 months in 2024. The government sees the current average raising period for premium Korean beef, known as hanwoo, as about 32 months. Generally, premium Korean beef, known as hanwoo, raised for 32 months is slaughtered and sold as beef.
The trend toward longer raising periods began in earnest in the 2000s. As imports of U.S. beef expanded with the opening of the beef market, the government and industry chose a "premiumization" strategy.
In this process, the beef grading system that values fat content, commonly called "marbling," was strengthened. Grading began to focus on how evenly fat is distributed within the meat.
Domestic consumer tastes also played a role. A Rural Development Administration survey found that "taste" is the most important factor when purchasing beef, and marbling is cited as the key element for judging taste.
To increase marbling in beef, cattle can be fed grain for an extended period in confined facilities. That raises beef production costs, which are ultimately reflected in consumer prices. A full-time premium Korean beef, known as hanwoo, farmer surnamed A said, "Even if production costs go up, we tend to extend the raising period because we believe we can get a higher price by raising a little longer."
Meanwhile, it was found that when the average raising period for premium Korean beef, known as hanwoo, is around 28 months, average farm income is highest. By year, farm income was highest in the ranges of ▲ 26–27 months in 2021 ▲ 27–28 months in 2022 ▲ 28–29 months in 2023. The government's plan to lower the average raising period for premium Korean beef, known as hanwoo, from 32 months to 28 months appears to take this into account.
◇ In the U.S., slaughter at an average of 18 months… thorough application of expense and revenue concepts
In the United States, it is common to slaughter cattle after an average of 18 months of raising. Producers typically graze initially and then raise cattle in facilities for a set period before slaughter. Feeding grain during confined feeding can put on weight quickly.
Expense and revenue concepts are applied rigorously in this process. Once past 18 months, raising expenses, including feed costs, grow and profitability falls. There is also the factor that U.S. consumers prefer steak beef with relatively less fat, so there is no need to raise cattle for a long time to create marbling.
The United States is also a major exporter in the global beef market and sometimes produces highly marbled beef separately to match the preferences of importing countries' consumers. If revenue can exceed expenses, producers readily change production methods.
A Ministry of Agriculture, Food and Rural Affairs official said, "In the past, premiumizing premium Korean beef, known as hanwoo, was an unavoidable choice to compete with imported beef, but as that strategy solidified into long-term raising, it led to expense burdens and higher consumer prices." The official added, "It is important to change the structure so farms judge not by 'how much they sold a cow for' but by 'how much actually remains after the sale.'"