The Ministry of Agriculture, Food and Rural Affairs said in its plan to improve the livestock product distribution structure on the 13th that it would shorten the average raising period for premium Korean beef, known as hanwoo, to 28 months. The idea is that cutting the current 32-month raising period by four months would lower production costs by 10% and 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. A longer raising period increases production costs and pushes up consumer prices. Experts said the raising period for premium Korean beef, known as hanwoo, became relatively long due to a beef grading system based on fat content, commonly called "marbling," and consumer preferences.
◇ Pushing a "marbling" strategy as U.S. imports grow… raising period lengthens
For premium Korean beef, known as hanwoo, steers are mainly raised. According to the Ministry of Agriculture, Food and Rural Affairs, the shipment age for premium Korean beef, known as hanwoo, steers increased from an average of 30.4 months in 2007 to 31.1 months in 2017 and 31.6 months in 2024. The government believes the current average raising period for premium Korean beef, known as hanwoo, is about 32 months. In general, premium Korean beef, known as hanwoo, raised for 32 months is slaughtered and sold as beef.
The trend toward longer raising periods became full-fledged in the 2000s. As imports of U.S. beef increased with market opening, the government and industry chose a "premiumization" strategy.
In the process, the beef grading system that emphasizes fat content, commonly called "marbling," was strengthened. The degree to which fat is evenly distributed in the meat became a key criterion for assigning grades.
Domestic consumer tastes also played a role. A Rural Development Administration survey found that "taste" is the most important criterion when purchasing beef, and marbling is cited as the key factor in judging taste.
To increase marbling in beef, feeding grain in facilities for a long period is sufficient. That raises beef production costs, which in turn is reflected in consumer prices. A full-time premium Korean beef, known as hanwoo, farmer surnamed A said, "Even if production costs increase, we end up extending the raising period on the idea that keeping them a bit longer will fetch a higher price."
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 for the average raising period 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.
◇ Slaughter at an average of 18 months in the U.S.… strict application of expense and revenue concepts
In the United States, it is common to slaughter cattle after an average of 18 months of raising. They mainly use a method of grazing at first and then finishing in facilities for a certain period before slaughter. Feeding grain during facility raising can fatten cattle in a short time.
In this process, expense and revenue concepts are applied rigorously. If the period exceeds 18 months, raising expenses, including feed costs, rise and profitability declines. There is also the circumstance that U.S. consumers prefer steak beef with relatively low fat content, 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 separate high-marbling beef to match the preferences of importing countries' consumers. If revenue can exceed expenses, they will 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 inevitable choice to compete with imported beef, but as that strategy hardened 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 head of cattle for,' but by 'how much actually remained after selling.'"