Demand for Wagyu beef

PL710

Hi,
I am interested establishing a wagyu herd along with a partner. We have been able to source animals available for purchase.Both of us have a good deal of experience with livestock but little experience with marketing/sales.
The plan for the herd would be to sell direct to restaurants and shops around the country.
The farm is run to the highest standards and is involved in quality standards & carbon reduction initiatives.
I was wondering if people feel there is a market for this type of beef? or is there anyone interested in purchasing wagyu beef ?.
This plan is only in its infant stage and any advice would be appreciated.
Thanks

Dawggone

PL710 wrote: »

Hi,
I am interested establishing a wagyu herd along with a partner. We have been able to source animals available for purchase.Both of us have a good deal of experience with livestock but little experience with marketing/sales.
The plan for the herd would be to sell direct to restaurants and shops around the country.
The farm is run to the highest standards and is involved in quality standards & carbon reduction initiatives.
I was wondering if people feel there is a market for this type of beef? or is there anyone interested in purchasing wagyu beef ?.
This plan is only in its infant stage and any advice would be appreciated.
Thanks

Do your market research first. Then do it again.

50HX

your target market is going to be high end i would think

it's a niche so there is always room

have you worked out costing with regards to the processing/packaging end of things??

i would agree fully with previous posts re market research

also check this link

bets of luck with it
http://www.jameswhelanbutchers.com/search.php?pg=1&stext=wagyu

Miname

Maybe I'm being sceptical but I'd say it's just a fad. People want what they can't have and you can't get meat of a wagyu by the look of it. Theres probably room for a small bit for the extreme in dining but when the majority of people are looking for even cheaper food than the cost of production, I can't see too many paying over the odds for a fad.

PL710

50HX wrote:

have you worked out costing with regards to the processing/packaging end of things??

Yeah processing and packaging is actually a small cost . The capital cost of the animals is by far the biggest cost but also it's the fact that money spent now won't have a return for 3 years so getting business to supply may be difficult

PL710

Miname wrote:

Maybe I'm being sceptical but I'd say it's just a fad. People want what they can't have and you can't get meat of a wagyu by the look of it. Theres probably room for a small bit for the extreme in dining but when the majority of people are looking for even cheaper food than the cost of production, I can't see too many paying over the odds for a fad.

I wouldn't agree it's a fad wagyu beef has been around for along time just look at Australia it has a huge wagyu herd . The uk is catching on now too with some large herds being established . People would be paying for a superior product. local purchasing of food seems to be on the up and up and the moment but also I agree that the vast majority of people are just looking for the cheepest option .

Timmaay

50HX wrote: »

it's a niche so there is always room

I would have thought the laws of economics would suggest the opposite?

screamer

3 years to perhaps get a return on investment in a shaky meat market with a faddy product...... risky to say the least.

Future Farmer

PL710 wrote: »

I wouldn't agree it's a fad wagyu beef has been around for along time just look at Australia it has a huge wagyu herd . The uk is catching on now too with some large herds being established . People would be paying for a superior product. local purchasing of food seems to be on the up and up and the moment but also I agree that the vast majority of people are just looking for the cheepest option .

Just looking at the inseminations by breed in the ICBF Beef Breeding Journal 2015 - 2016 and only 102 Wagyu beef inseminations recorded in 2014.

I have thought about it myself, I suppose minimising set up costs is what is most important (e.g. Embroyo work etc is expensive - I know there is a pay off to that work too), I'd imagine it would make more sense to buy the straws and pay a dairy neighbour an agreed price for the dropped calves, kill the bullocks and perhaps start from there with your half bred heifers, from what I have seen they are very easy calved and gestation shouldn't really be a problem for the dairy farmer.

mayordenis

Timmaay wrote: »

I would have thought the laws of economics would suggest the opposite?

Kinda works both ways, if it's a niche then there won't be other large suppliers dominating the market.

freedominacup

PL710 wrote: »

I wouldn't agree it's a fad wagyu beef has been around for along time just look at Australia it has a huge wagyu herd . The uk is catching on now too with some large herds being established . People would be paying for a superior product. local purchasing of food seems to be on the up and up and the moment but also I agree that the vast majority of people are just looking for the cheepest option .

Are they actually wagyu? I thought the Japanese had managed to prevent the export of any breeding stock.

welton john

https://www.donedeal.ie/dairycattle-for-sale/wagyu-heifer-calf/10532921

i hope you aint buying at these prices.:eek:
Either way best of luck if you go ahead

ganmo

I'd suggest you do some kind of butchering course
You have to consider the market for the sub prime cuts, probably burgers

drunkmonkey

Have you thought about Buffalo, it's something I haven't seen on the menu in Ireland, last time I was in London went down for a buffalo burger to a Canadian restraunt. A mighty fine burger.
I'd say it doesn't cost a lot more than beef but it's meant to be healthier and smaller portions are needed to get the same nutritional value as beef.

lanod2407

I think there's definitely a market for high-end beef - not everyone is chasing prices to the bottom.
If you're going to sell to restaurants you'll need continuity of supply - will you have the herd, at the right age through the year, to supply to your customers on a continuous basis?

Some guys growing their herds of Galloway cattle here now - a really good, marbled meat - and that's a challenge that is being addressed by some farmers coming together to provide required volumes.

tractorporn

drunkmonkey wrote: »

Have you thought about Buffalo.

We have used wagyu straws on some AAx heifers in the past, the calves are very very small and take an age to get to any decent weight. The main reason we stopped was that we found it very hard to get any decent market for it , local butchers loved the idea of it but wouldn't pay any extra for it. The restaurant trade is probably the best route for sales but then they only will take the prime cuts so you cold be left with a heap of stew and mince. We just didn't have the time to get cattle slaughtered, then butchered and then try every restaurant to take some of it.

Ive been thinking of getting a few bison for a couple of years now. I've had it a couple of times now and the meat has always been exceptional and it is one of the leanest meats around so could prove popular as these lean diets gain ground. But I have done no research yet so without that I wont be making any jump

Plus I could feel like Hoss Cartwright from Bonanza when going round herding each morning!!!:p

cj maxx

tractorporn wrote: »

We have used wagyu straws on some AAx heifers in the past, the calves are very very small and take an age to get to any decent weight. The main reason we stopped was that we found it very hard to get any decent market for it , local butchers loved the idea of it but wouldn't pay any extra for it. The restaurant trade is probably the best route for sales but then they only will take the prime cuts so you cold be left with a heap of stew and mince. We just didn't have the time to get cattle slaughtered, then butchered and then try every restaurant to take some of it.

Ive been thinking of getting a few bison for a couple of years now. I've had it a couple of times now and the meat has always been exceptional and it is one of the leanest meats around so could prove popular as these lean diets gain ground. But I have done no research yet so without that I wont be making any jump

Plus I could feel like Hoss Cartwright from Bonanza when going round herding each morning!!!:p

Firstly i KNOW fcuk all about it all but werent bison , ostrich 's etc the 'next big thing' a few years back.
Very niche i' d imagine

michaelheno

A butcher in Macroom Co. Cork called Michael Twomey is setting up a breeding system where he gets local farmers to breed the wagu beef in which he buys the animal from them.

PL710

lanod2407 wrote:

I think there's definitely a market for high-end beef - not everyone is chasing prices to the bottom. If you're going to sell to restaurants you'll need continuity of supply - will you have the herd, at the right age through the year, to supply to your customers on a continuous basis?

lanod2407 wrote:

Some guys growing their herds of Galloway cattle here now - a really good, marbled meat - and that's a challenge that is being addressed by some farmers coming together to provide required volumes.

The continuous supply of beef should not be a problem. The land is available and the other guy who is interested in it is a licenced embryo transfer technician so we should be able to get a herd up and running smoothly but again it's all about having someone serious about buying it from us .

PL710

michaelheno wrote:

A butcher in Macroom Co. Cork called Michael Twomey is setting up a breeding system where he gets local farmers to breed the wagu beef in which he buys the animal from them.

Cheers I will give that guy a call

PL710

freedominacup wrote:

Are they actually wagyu? I thought the Japanese had managed to prevent the export of any breeding stock.

No there is thousands of wagyu all over the world . As far as I know the Japanese have only tightened export of breeding stick in the last few years.

PL710

ganmo wrote:

I'd suggest you do some kind of butchering course You have to consider the market for the sub prime cuts, probably burgers

Yes definatly a good idea the other thing I need to find out more about is the criteria for selling beef and what licences etc are required

Kovu

freedominacup wrote: »

Are they actually wagyu? I thought the Japanese had managed to prevent the export of any breeding stock.

Never heard of that happening.
You're not mixing up the Kobe beef label with the wagyu breed by any chance?

PL710

tractorporn wrote:

We have used wagyu straws on some AAx heifers in the past, the calves are very very small and take an age to get to any decent weight. The main reason we stopped was that we found it very hard to get any decent market for it , local butchers loved the idea of it but wouldn't pay any extra for it. The restaurant trade is probably the best route for sales but then they only will take the prime cuts so you cold be left with a heap of stew and mince. We just didn't have the time to get cattle slaughtered, then butchered and then try every restaurant to take some of it.

What kind of carcase weights were you getting with the crossbred wagyu, was it possible to finish them in 2 years. I presume you did not casterate the bulls?
Thanks in advance

tractorporn

cjmc wrote: »

Firstly i KNOW fcuk all about it all but werent bison , ostrich 's etc the 'next big thing' a few years back.
Very niche i' d imagine

Oh quite possibly, I have done zero research on them as yet but its something that stuck in the mind over the past few years. I wouldn't be afraid to try things if I thought it would bring in a better return.

PL710 wrote: »

What kind of carcase weights were you getting with the crossbred wagyu, was it possible to finish them in 2 years. I presume you did not casterate the bulls?
Thanks in advance

We did castrate them as we are in no way set up for bull beef here, we just ran them along with the rest of the herd. We got them to between 380 and 420 kgs dead weight but all of them were well over the 30 months at that stage.

Now the meat that we kept was fabulous, we have never had anything as good but commercially for us it just didn't stack up especially as I got a full time job and didn't have the time needed to get it running.

freedominacup

Kovu wrote: »

Never heard of that happening.
You're not mixing up the Kobe beef label with the wagyu breed by any chance?

Are Kobe the ones that get all the tlc, massages etc? Whichever I'm thinking of they were pretty anal about controlling the genetics.

Never wrestle with pigs

Selling to restaurants direct is very high risk. They go bang for sport, change name and go agin. Except you won't get payed.

Kovu

freedominacup wrote: »

Are Kobe the ones that get all the tlc, massages etc? Whichever I'm thinking of they were pretty anal about controlling the genetics.

It's one of the Kobe beef sections alright, a quick google tells me it's Matsusaka beef that get the beer and massages.
Aaaagh hate using Wiki for sources but ''Mishima cattle and Kuchinoshima cattle are the last two of remaining breeds of pure wagyu today.''
I'd say it's these two that they're petty about regarding breeding and crosses, wagyu literally means Japanese beef so they must be the last strains that haven't been crossed with outside genetics. Similar to our Droimmeann cattle or the Kerry cows, would be high on the list of breeds that need to be conserved.

PL710

Never wrestle with pigs wrote:

Selling to restaurants direct is very high risk. They go bang for sport, change name and go agin. Except you won't get payed.

Is it worth the risk. You get 4 euro a kg for animals in the factory , what is the value of that carcass after processing ??????

Butcher Boy

PL710 wrote: »

Is it worth the risk. You get 4 euro a kg for animals in the factory , what is the value of that carcass after processing ??????

About 3200

PL710

That's 2 and a half time the money for processing which is a small cost .
All depending if u can sell the beef of coarse

sonnybill

I tasted Wagyu in Dubai and it definitely was the nicest beef I ever tasted .

They look angular though.. Good cross with an Angus maybe, all that taste and bit more beef characteristics ?

How is that going in cork with butcher buying them back ?

dm80009

Did you go ahead with this idea?