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Is Waygu for you?
Known for its highly marbled, tender meat, the Waygu breed – which originated in Japan – has potential for seedstock and commercial operations.
By Kindra Gordon
If you were writing a “want ad” for your cowherd, calving ease, a docile temperament, and the ability to adapt to the environment would probably be on the required traits list. Along with that, carcass traits – specifically marbling – would also likely rank high in order to command premium prices.

So if a Waygu bull answered your “want ad” would you give him the job?

Fact is, the Waygu breed’s resume does include all those attributes – from calving ease and adaptability to high marbling genetics. Most importantly, Waygu beef has earned a reputation synonymous with exquisite taste – and research has proven it to be beneficial to human health.

Because of that, there are some opportunities for the breed within the beef industry – from fullblood and percentage operations to commercial herds.

Charles Gaskins, who serves as Executive Secretary of the American Waygu Association and is also on the faculty of the Washington State University Animal Sciences department says, “The Waygu breed has some valuable attributes to contribute to beef cattle breeding programs. Waygu can greatly enhance the marbling potential of progeny in beef crossing systems. Waygu will also improve tenderness and enhance beef flavor because Waygu have a different profile of fatty acids compared to other breeds.”

Additionally, he points out that Waygu bulls produce smaller calves at birth than most other breeds, and therefore are an excellent choice for breeding to heifers. “Reducing calving difficulty reduces costs and improves the lifetime productivity of cows,” he says.

Thus, from adding desirable traits to commercial herds to aiming for the high-dollar premiums associated with high percentage and fullblood Waygu beef, some producers might find Waygu fits their needs for the future.

Here, three breeders share their experiences with Waygu cattle and how they’ve tailored them to their operations:

Crescent Harbor Ranch - Ralph & Helene Valdez
Ralph and Helene Valdez have been raising fullblood Waygu on their ranch near Oak Harbor, WA, since the mid-90s. Ralph explains that they previously were in the seafood export business and in their travels to Japan had developed a fondness for Kobe beef.
When they sold their seafood business, they decided to raise Waygu beef. Today, they’ve built their herd to include 75 fullblood females and also have a 100 head recip-herd.
He reports that the focus on their ranch is in private treaty selling fullblood genetics and seedstock to others interested in getting into the breed. To be classified as a fullblood Waygu, cattle must be 100% Waygu and they must be DNA verified to have a fullblood Waygu sire and dam. Crescent Harbor had a booth at the recent NCBA trade show in Phoenix and Ralph says interest in Waygu was evident.

They also feed and sell some of their fullblood Waygu beef to local restaurants.
His advice to others interested in the Waygu breed is this: “Quality will always sell.”
Given the high-standing reputation for Waygu beef and having maintained a fullblood herd, Ralph believes that should remain the focus for the Waygu breed, but he acknowledges there is a place for Waygu genetics in F1 breeding programs. He says, “I think there is a place for commercial herds to use Waygu too” – particularly to improve quality grades.
He says, “Waygu are a grid-beater. If a producer put Waygu bulls on Angus cows he would increase the percentage of Prime and Choice to 80-100% without sacrificing yield.”
That said, he does caution that anyone looking to use Waygu genetics – be it for a fullblood or commercial program – should do their homework.

He says, “There are several different strains of Waygu. The most popular is the Tajima strain. The Mishima is not very well known and it is from an island of the same name in Japan, it finishes well on grass, so fits a special niche…Each strain has different strengths. So it is important to be knowledgeable and speak with experienced breeders.”

Morgan Ranch - Dan, Ronny and Jeanne Morgan
On their ranch near Burwell, NE, the Morgan family has been raising and selling Waygu beef for nearly 20 years. They have focused on raising registered Purebred Waygu (93.75% Waygu or more) and three-quarter blood Waygu and selling their Waygu beef online and through contracts nationally and internationally to restaurants, gourmet food markets and individuals.

Of their Waygu herd Jeanne Morgan says, “We are ranchers in the beef business, and the cows have to work for us.”

The Morgan’s began raising Waygu because of the exceptional quality of the final product. In addition to carcass quality, they also like the Waygu breed for its fertility and calving ease – average birth weight is 65 lbs. By concentrating on a high a percentage Waygu, the Morgan’s feel they are able to increase efficiency, particularly feed efficiency.

“We’ve put heavy selection pressure on polled genetics, and we’ve worked at selecting for feed efficiency,” Jeanne says. She explains that their cattle are often on feed for 200-250 days to finish – where most Waygu cattle are fed for 300 days or longer. And she adds, “To verify our quality control we collect carcass data on every animal harvested relating back to sire and dam.”

“Our main goal is to maintain a high percentage of Waygu genetics and still maintain the superior quality of the meat. We’ve found that you can raise a Waygu that is acceptable to look at phenotypically and is economically efficient and offers an exquisite dining experience,” she says. In 2006, Morgan Ranch American Waygu was the winner of the Wall Street Journal’s Best Value Award in a blind taste test of Waygu beef.

In addition to selling their Waygu beef direct, Morgan Ranch also sells bulls by private treaty to a well-established customer base of commercial producers who buy Waygu bulls for calving ease, hybrid vigor, carcass quality, and to retain females in order to add fertility and carcass traits in their herd.

Morgan’s advice to others is that Waygu can fit a commercial operation and that not all Waygu need to be fullbloods. She says, “There is a place in the real world for these genetics, but you have to know how to manage and market them.”

Like Valdez, she too says quality always sells and that even in the current recession their business has been unaffected. She concludes, “Our customers value the information we provide about our ranch and the Waygu we raise. They appreciate the health benefits and superior quality of the Waygu product, and they are still buying our Waygu beef.”

Lone Mountain Cattle - Bob and Mary Lloyd Estrin
In April 2005, Lone Mountain Cattle Co. near Golden, NM, began transitioning from a commercial herd to fullblood Waygu. Using extensive A.I. and embryo transfer, the ranch has grown to 250 fullblood Waygu on the ranch, where they will hold their second annual production sale this spring.

Owner Bob Estrin got into the Waygu breed because he too enjoys the beef and its healthy attributes. He also recognized the premiums that fullblood Waygu beef commands in restaurants.

Asked where Waygu may fit into other cattle operations, Estrin says it is important to recognize there is really a three-tiered market available for Waygu beef.

At the basic level, he explains that commercial producers may want to add Waygu bulls to their herd to introduce more marbling and achieve a higher percentage of Prime and High Choice quality grades in their calves.

Second, is the Waygu beef produced from percentage Waygu cattle. This beef fills a niche and commands a premium at many restaurants and gourmet food markets among wealthy individuals.

The third-tier is fullblood Waygu beef. “The demand for this is in very high-end restaurants,” explains Estrin, but the challenge in the U.S. is that not many fullbloods are available for slaughter – almost all of the fullblood Waygu served in the U.S. is imported from Japan and Australia.

Thus, Estrin hopes as fullblood Waygu numbers increase in the U.S. – presently there are fewer than 5,000 – American breeders will tap that market, and he says, “This is were we see the golden opportunity.”

Estrin acknowledges that fullblood and crossbred Waygu are both niche products, but he’s adamant that there’s a market for them – even in today’s economy. He too says, “Quality sells.”

His advice to cattlemen considering Waygu is this: Find your place in the three-tiered market; see what fits your operation. And lastly he says, “Recognize that at the end of the day, we are food producers; and so it is important to take a long range view of the process.”

Editor’s Note: Lone Mountain Ranch will host two educational seminars about the Waygu breed prior to their April sale. The seminars will be broadcast live via DVAuction. The topic for the first seminar on April 17 is “Marketing your Waygu.” It will be moderated by Estrin and include a panel discussion with a former Ritz Carlton sous chef, a Waygu feeder, and fellow fullblood breeder, Ralph Valdez.

The second seminar will be the morning of April 18 with a focus on the health benefits of Waygu beef. Dr. Stephen Smith from Texas A&M will present his research findings on the topic followed by a question and answer session moderated by beef industry writer Wes Ishmael.

Advice from AgriBeef
As one of the largest suppliers of Waygu beef in the U.S., AgriBeef sells their American-style Kobe beef under the label Snake River Farms. Luke Detar, a production specialist, explains that in producing their Waygu product AgriBeef owns the genetics and contracts with producers that have Red and Black Angus and baldie based herds, and then buys back the Waygu calves. About 95% of the Snake River Farms beef is supplied this way.
Detar says it is done through controlled genetics and contracts to ensure a premium product is produced.

Because of this Detar also advises those looking to get into the Waygu breed to “know your plan and know your buyer.”

He adds, “It is important to have some contracts set up because that is how the majority of Waygu beef is purchased.”

Detar acknowledges that Waygu genetics may offer some calving ease benefits for commercial herds – particularly if used on first calf heifers. “It is great for calving ease and produces a better product than using a Longhorn for calving ease.”

But he cautions that producers need to look at using Waygu for the right reasons and be sure it will benefit the industry. He concludes, “There is opportunity but producers need to be careful and realistic. There can be a lot of variance in the Waygu breed; there are also vast differences in the traditional long fed and short fed Waygu beef. Just like any breed it takes a whole system to result in quality beef.”
 

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