NewsWhy wagyu beef commands a luxury price tag

Why wagyu beef commands a luxury price tag

Wagyu beef is one of the most expensive meats in the world
Wagyu beef is one of the most expensive meats in the world
Images source: © Getty Images | Pramote Polyamate

1:13 PM EDT, June 6, 2024

Wagyu is beef that originates from Japan. It's not meat for every budget. You must pay from $120 to $300 per pound in the US. In comparison, a pound of regular beef in the market costs several dollars. Why does Wagyu cost so much?

One of the most expensive and luxurious meats in the world is wagyu beef. For a pound of ribeye or tenderloin, you must pay between $120 and $300, while regular beef in the market costs several dollars per pound. So, why does this particular type of meat command such a high price? The main factor is the specific way it is raised.

1. Genetic purity of cow breed

The beef must come from cows 100% genetically derived from one of the four Japanese cattle breeds - Kuroge Washu, Akage Washu or Akaushi, Mukaku Washu, and Nihon Tankaku Washu. These are collectively referred to as wagyu.

Wagyu is a term for cows originating from four Japanese breeds
Wagyu is a term for cows originating from four Japanese breeds© Getty Images | © 2016 Bloomberg Finance LP

2. Feeding wagyu cattle is expensive

Wagyu cows receive the most expensive and best feeds, which affects the meat's consistency. Because feeding wagyu cattle is costly, breeders must sell the meat at higher prices to offset their expenses. The cows are fed organic feed consisting of grains, potatoes, rice, and legumes. This feed is certified, which adds to the cost.

Cows are fed with high-quality fodder.
Cows are fed with high-quality fodder.© Getty Images | © 2016 Bloomberg Finance LP

3. Wagyu cows don't spend their lives in confinement

This is another cost associated with producing this Japanese beef. In Japan, it is much harder to find free pastures, so maintaining such farms is more expensive.

4. Longer breeding time

Wagyu cows reach a weight of around 1,500 lbs. Breeders must allow the cows to live longer than other cattle breeds to achieve this. The cost of maintaining a cow pays off after about a year, so farmers amortize this in the selling price.

5. Japanese meat quality standards are very stringent

Each piece of meat is carefully evaluated. Inspectors, trained for many years, pay attention to elements such as marbling, ease of cutting, and fat content percentage. Such experts are highly respected and well-paid in Japan, and all of this is reflected in the price you pay for Wagyu.

6. It's difficult to buy Japanese bull semen

The Japanese strive to ensure that meat from wagyu cows remains a specialty. Therefore, exporting the semen of these Japanese bulls is hindered. The Japanese use their dominance to drive up the price.

High standards affect the price of wagyu
High standards affect the price of wagyu© Getty Images | © 2016 Bloomberg Finance LP

7. Tariffs, taxes, fees

Since the Japanese maintain a monopoly on breeding and preparing the meat, wagyu beef must be imported to various countries, including the US. Logistics, customs duties, and taxes are other components of the meat's high cost.

8. Health benefits of wagyu

Connoisseurs claim that wagyu is not equal to beef. It is considered the caviar of meats. However, taste isn't everything. Among other benefits, this beef has an exceptionally favorable effect on cholesterol levels. Wagyu cow meat is rich in monounsaturated fats, omega-3 and omega-6 fatty acids, and has high protein and iron content.

Wagyu beef is one of the most expensive meats in the world
Wagyu beef is one of the most expensive meats in the world© Getty Images | 2019 Cristina Arias