WHY NOT???

[plbcattle]

I have been doing a little research on kobe beef and looking at Black Wagyu cattle. I have had Gary Yamamoto Custom Beef and it is excellent. I don;t think there can be much of an argument for the taste of this beef. We all sell cattle to be eventually sold for meat by the pound. even if you sell registered high end stock it eventually will be used to produce beef for consumption. We all raise and sell beef to eat. This Kobe beef is $40-$85+ per pound. Why would one not raise cattle that sold for these kind of prices. I have looked at some cattle for sale and the prices aren't more than your typical registered stock. Why raise the cattle we are raising if we could raise something a little different that brought more money in the end(on the rail). I was just wondering about this I am sure there is a simple reason for this and you all will quickly point out this reason

 

[Mahoney Pursley Ranch]

Why not? If it was that easy everyone would be doing it.

 

[Frankie]

I have been doing a little research on kobe beef and looking at Black Wagyu cattle. I have had Gary Yamamoto Custom Beef and it is excellent. I don;t think there can be much of an argument for the taste of this beef. We all sell cattle to be eventually sold for meat by the pound. even if you sell registered high end stock it eventually will be used to produce beef for consumption. We all raise and sell beef to eat. This Kobe beef is $40-$85+ per pound. Why would one not raise cattle that sold for these kind of prices. I have looked at some cattle for sale and the prices aren't more than your typical registered stock. Why raise the cattle we are raising if we could raise something a little different that brought more money in the end(on the rail). I was just wondering about this I am sure there is a simple reason for this and you all will quickly point out this reason

Those cattle may do well for custom beef, but they're not bred to fit the US commercial cattle business. The packers have spent millions of dollars creating an efficient, fast processing system. They want uniform cattle that will hang a 7-900 lb carcass and grade Choice or better, YG 3 or better. That's their standard. I don't think a straight bred Wagyu will generally "fit the box." On the other hand, many feedlots are in the business of buying calves, feeding them cheap, and selling them to the packers. Wagyu are not bred for efficient feed conversion. I don't know much about fertility of Wagyu or their ability to survive on open rangeland, but that could also play into the lack of interest by cattlemen.

 

[DiamondSCattleCo]

Off hand, its a supply and demand thing. I don't know much about Kobe beef or Wagyu cattle, but I've gotta believe there isn't much demand for $85lb beef, at least not in comparison to 'ordinary beef'. So you've got a market without much demand, and you get another 100 suppliers (or maybe 10, or maybe 1, depending on the market). Prices crash down to close to ordinary beef levels, and using Frankie's observations, you're now left with livestock with possible inefficient feed conversion and no other market to sell to.

The elk market in Saskatchewan just went through something similar. Breeding stock was selling like crazy, with animals selling extremely high. Once the breeding market was all filled up, the elk guys finally realized they had slightly over-estimated demand for their product, and prices crashed.

Specialty and niche stuff is good to get into, but you have to get into it early, ensure that there will always be a market, and discourage others from entering the market. Or encourage alot of others to enter the market, sell them the breeding stock for inflated prices, and get out before it all crashes.

Rod

 

[Victoria]

I am in agreement with Rod, ostriches did the same thing here.

While on this subject though I have a question about Kobe beef. According to the encyclopedia Kobe beef can only be called Kobe beef if exported from Japan. Does the "Kobe Style" beef as they call American Wagyu beef actually command the same prices?

 

[Ryder]

I'm no expert on this but I would think this would be a lot more labor intensivethan most cattleman can or want to undertake.
Probably would also need a very expensive advertising program to create a market for your product.

For some it might work though??

 

[buckaroo_bif]

You can raise the best beef in the world but it won't do you any good unless you have a market established.

bif

 

[aplusmnt]

Here is an interesting article that explains a lot about the Kobe beef and why very few raise it here. And those that do ship them back to Kobe Japan so it can be considered Kobe beef. Also shows how hard it is to get someone in U.S. to sell you any of the live cattle.

http://members.tripod.com/~BayGourmet/wagyu.html

And if you want to buy a couple 8 oz sirloins for $115.00 here is the place to order them.

http://www.allenbrothers.com/findProduc ... s=GoogleAd

One thing I noticed that seems to go against the trend here in the U.S. is that Kobe beef is not very lean. It might be healthier fat but it still has lots of fat in it. Kind of on the opposite spectrum of the grass only cattle.

 

[andybob]

I have no personal experience with the Wagyu, but like to keep up to date on breeds as a whole to see what market trends are, and how they might effect the "base breeds" that are my main interest. I believe the main problem with Wagyu is fertility,I will p.m. 'Dad at the ranch' as I believe he is the resident forum Wagyu expert.

 

[SF]

plb; :lol: :lol: Haven't you learned from this board yet, real cattlemen aren't allowed to make money? They only make $100 per head. It's a sin to make lots of money.
I just love the comment. "...I've gotta believe there isn't much demand for $85lb beef, at least not in comparison to 'ordinary beef'..." That's why it is bringing $85 per pound, there isn't much demand.

Seriously plb; Kobe beef is a niche market. Lots of money to be made in some of the niche markets. Will prices fluctuate, probably. Will prices go down, maybe. They might go up too. I can't see into the future, if I could, I'd already be rich. Sounds like it is worth looking into. Good luck

 

[DiamondSCattleCo]

I just love the comment. "...I've gotta believe there isn't much demand for $85lb beef, at least not in comparison to 'ordinary beef'..."

That was unfortunate phrasing, as its pretty obvious that demand is outstripping the supply right now. Better phrasing would be: Not enough of a market to make it a safe venture. In other words, how much total demand is there for this stuff? If total demand is 100,000 lbs yearly, and the current production rates can only supply 75,000 lbs, that may account for the high price. But it won't take much increased production to meet demand and bring prices down.

Since Kobe beef is considered a delicacy, and as such, is a luxury good, its cost will make rapid swings on small fluctuations in either demand or supply.

Rod

 

[Dad at the Ranch]

I have no personal experience with the Wagyu, but like to keep up to date on breeds as a whole to see what market trends are, and how they might effect the "base breeds" that are my main interest. I believe the main problem with Wagyu is fertility,I will p.m. 'Dad at the ranch' as I believe he is the resident forum Wagyu expert.

Andybob, Thanks for the p.m., I have spent little time at the computer for the last several days. " resident" I am not sure about, plus there are a lot of people on this board a lot smarter than I am. By the way, I can only speak from my experience but the Wagyu are about like a rabbit, Very / Very Fertile, compared to other breeds. Also small birth weight calves both purebred and crossbreeds.

 

[frenchie]

I just love the comment. "...I've gotta believe there isn't much demand for $85lb beef, at least not in comparison to 'ordinary beef'..."

In other words, how much total demand is there for this stuff? If total demand is 100,000 lbs yearly, and the current production rates can only supply 75,000 lbs, that may account for the high price. But it won't take much increased production to meet demand and bring prices down.



Rod

I agree with Rod on this ..One last thing if you are dependent on a niche market what would happen if the Japanese banned our beef again?How much kobe beef is consumed in North America..kind of like putting your eggs in one basket.

 

[Mom at the Ranch]

Allen Brothers, a major U.S. distributor of USDA Prime beef and other high-end meats, has seen an eight-fold increase in demand for its U.S.-raised Kobe beef, which sells for as much as $100 per pound, PRNewswire reports. Known for its rich and juicy flavor and extraordinary tenderness and texture, Allen Brothers introduced its Kobe beef last summer. “Sales have exceeded our most optimistic expectations, going from 5,000 pounds a week in August to as much as 40,000 pounds in recent weeks,”