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Well, Bob and Mary Lloyd Estrin of Lone Mountain Cattle Co. near Golden, NM, hope to change that. They’ve made the switch from a traditional mixed-breed commercial cow herd to full blood Wagyu and have plans to make Wagyu cattle better known – and better accepted – in the U.S. beef industry.

Of the Wagyu breed, Bob Estrin says he is likes the fact that Wagyu offer “the whole package.”

He explains that the animals are known for calving ease, their docile temperament, and the ability to adapt to any climate – making them well-suited to Lone Mountain’s rugged conditions above 6,800 feet and annual precipitation of 10-14 inches in a normal year.
Estrin also emphasizes the extraordinary taste and healthy characteristics of the Wagyu meat – which research has shown to be the low in cholesterol, high in Omega-3’s and having a higher percentage of monounsaturated fat than any other breed of cattle in the world. “Wagyu beef is a healthy kind of meat,” Estrin says, likening it to salmon for its healthy attributes.

Quality Quest
Estrin says his decision to dive into the Wagyu breed is all about quality. About five years ago, he and his wife had Wagyu beef at a restaurant in California. Initially, Estrin couldn’t get over the price – $16/ounce, but when he tasted the steak, he knew he’d found black gold.
The premium quality of the Wagyu beef got the wheels turning in Estrin’s head. He and his wife had taken on ownership of her family’s New Mexico ranch in the mid-1990’s, and drought over the years was taking a toll on the ranch’s profitability. “As a commercial cow-calf operator it can be tough to make a profit on the grid, but with a drought, profit becomes even more challenging,” Estrin says.

In 2003, the drought prompted them to begin downsizing their commercial cowherd, and Estrin wasn’t quite sure what his next move was going to be.

Then he experienced Wagyu beef and had that “lightbulb” moment. “Sixteen dollars per ounce is a lot of money,” Estrin says. Thus, he was convinced Wagyu presented an opportunity to move away from the commercial mainstream and produce a premium beef product with higher value.

With more research, Estrin also discovered that the consumer demand for Prime beef is about four times greater than what the U.S. beef industry currently supplies, resulting in many white-table cloth restaurants turning to international markets to get their Prime beef supply.

For Estrin, the opportunity that existed for Wagyu seemed obvious, and he decided to make the switch at the ranch.

Making The Switch
For many traditional ranchers, such a major change in herd genetics would be unorthodox. But, Estrin is accustomed to making bold decisions. Though he and his wife both have New Mexico roots, they also built professional careers in California – she as a photographer; he as a film editor in Hollywood best known for his editing on the major motion picture A River Runs Through It. Prior to his retirement from the film world over ten years ago, he was also a Professor at the University of Southern California’s film school.

From those experiences, Estrin says he and Mary are accustomed to change and finding opportunities. Today, the duo still split their time between California and their New Mexico ranch, but they are very much involved in the transition to Wagyu.

Of the parallel between Hollywood and the new venture at the ranch, Estrin says, “I certainly have watched how films are marketed and have seen that small independent films can have an impact. I think this [raising full blood Wagyu] is like a small independent film trying to break through.”

In April 2005, Lone Mountain Cattle Co. purchased it’s first two full-blood Wagyu bulls to breed to its commercial herd. In August of that year, nine full-blood Wagyu cows were purchased to begin the foundation of the ranch’s full blood breeding program. With the extensive use of A.I. and embryo transfer, Estrin’s goal is to create the best possible genetics of full blood Wagyu and be a leading Wagyu producer. In less than three years, the ranch now has nearly 250 Full Blood Wagyu on the ranch.

As the herd is being developed, the primary focus remains on quality genetics. Lone Mountain is incorporating ultrasound and genetic evaluation (in the form of DNA marker testing for marbling and tenderness) into the development of their Wagyu herd. Already two of their sires – Bar R 12 P Takazakura (now deceased) and LMR Yojimbo (bred and raised by Lone Mountain Cattle Co.) – have received the highest possible GeneSTAR ranking for tenderness and marbling, posting 14-stars.

Every animal on the ranch is also given an RFID tag to allow traceback on the cattle.
Originally, Estrin thought the ranch would raise Wagyu-cross calves for the market, but, upon realizing there are only 3,000 to 5,000 full blood Wagyu in the U.S., he recognized an opportunity to grow the U.S. Wagyu herd size by becoming a seedstock supplier of the breed.

Lone Mountain will host its first production sale at the ranch on April 19, 2008 with more than 50 live lots consisting of full blood Wagyu females and bulls, along with embryos and several pregnancies – making it the largest offering of premium Wagyu genetics ever assembled for public auction in the United States.

Estin says most Wagyu cattle in the past have been offered for sale private treaty. He says, “There hasn’t ever really been a public auction in the U.S. with the large numbers we are offering. But I realized that to reach out to more cattle producer’s in the industry, I need to offer females as well as bulls and have a huge marketing campaign, which for me coming from the film world is a better fit than selling private treaty.”

Lessons Learned
“There has been a learning curve,” Estrin says of their aggressive journey into Wagyu genetics. “Raising the cattle has not been that different from our commercial herd. They are wonderful, gentle cattle. What has been part of the steep learning curve has been the reproductive aspect. We had never AI’d on the ranch or had registered cattle. We’ve done a tremendous amount of ET work and have even had cows go through the in-vitro fertilization process,” he explains.

Lone Mountain’s scientific approach has allowed them to build up the herd rapidly. Additionally, the ranch is documenting all the data and registering with both the U.S. and Australian Wagyu associations in order to amass data for EPDs on their cattle.
Estrin has also personally traveled to both Australia and Japan to learn more about their success at producing Wagyu cattle. In Japan, where the breed originated over 100 years ago, Estrin says the Wagyu is regarded as a national treasure. “They eat it in a very small portion – 4 oz. is more than enough,” he says.

From those travels, Estrin says he has come to understand the cultural differences in raising Wagyu as well. “I like understanding the historical aspect; that has been part of the learning process too. I’ve studied the bloodlines of many of the great Japanese Wagyu sires. The challenge is to figure out how to breed a sire that will perform better than those that have preceded him. We are using all these methods to figure out where our herd is and where it can go.”

That said, Estrin is excited for the future. “We anticipate we are going to be rewarded for our efforts,” he says of the large investment he’s made into the Wagyu breed.

He adds, “There’s a crying need by the consumer for more highly-marbled meat.” As a result, restaurant owners from white tablecloth to hamburger chains are looking for higher quality beef, and Estrin believes Wagyu is the answer.

By educating consumers and beef producers, he hopes they’ll see the Prime quality that Wagyu offer as well. He says that 95% of half Angus, half Wagyu cross calves (F1s) will grade Prime if fed out correctly. “That can make a huge value difference when looking at the Prime-Select price spread and comparing it to the fact that only 1 to 2 percent of calves in a commercial herd grade Prime,” Estrin says.

Estin says the real money to be made is in producing full blood Wagyu because their marbling is even finer than the F1’s, making full blood Wagyu meat more valuable. But at this time there just aren’t enough full bloods available in the U.S. for slaughtering.

He is hopeful that in the next 5 to 10 years as Wagyu full blood numbers are built up in the U.S. we’ll see more availability of Wagyu beef on menus.

Estrin acknowledges that Wagyu is a niche product, but he’s adamant that there’s a market for it. “It’s the same as Mercedes Benz; not everyone can afford one, but there is a market for top-quality vehicles.”

He concludes, “This is the beginning of the wave. It’s going to take time. We get our share of skeptical looks. But we are prepared for a long haul. I’m pushing this idea because there is a way to produce a quality product. I believe Wagyu is a winner.”
For more information visit: www.LoneMountainCattle.com

What you need to know about Wagyu.
The Wagyu breed originated in Japan, where they were used as draft animals for cultivation. As a result, they were selected for physical endurance. Thus, these animals tended to have more intra-muscular fat cells or marbling, which provided a readily available energy source. This has resulted in high marbling carcasses unlike any other breed.

The Japanese government regulates Wagyu cattle, and, only Wagyu produced in the Kobe region of Japan can be marketed as ‘Kobe Beef.’ Though the quality of Wagyu cattle raised in the United States is equivalent, and based on the same genetic pool, U.S.-raised product should be marketed as Wagyu – not Kobe Beef.

Wagyu genetics were only exported into the U.S. briefly in the 70’s and then again in the 90’s. Most American Wagyu are percentage Wagyu. The categories are: F1’s 50% Wagyu; F2’s 75% Wagyu; and F3’s 87% Wagyu. Purebred Wagyu are 15/16ths (93.75% Wagyu). Only 100% Wagyu can be called full blood Wagyu – they must be DNA verified to have two bull blood parents, both sire and dam.

Wagyu cattle produce bright red meat that is highly marbled and has unique flavor and tenderness. The meat also has a higher percentage of monounsaturated fat than any other breed of cattle in the world, and it is extremely low in cholesterol.

Lone Mountain at Denver Stock Show
In 2007 and 2008, Lone Mountain Cattle Co. has exhibited a Wagyu bull at the National Western Stock Show in Denver to help raise awareness for the breed. During the two week event, they also have a trade show booth to help educate consumers and producers about Wagyu beef.

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