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The Most Expensive Steak in America

Posted Thu, Jul 03, 2008, 4:40 pm PDT
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Recently, I was invited to the first Wagyu auction of the Lone Mountain Cattle Company in New Mexico. I jumped at the chance to find out the truth behind those golden steaks stampeding menus across America. Six ounces cost $70 at Wolfgang Puck's Cut steakhouse in Beverly Hills and 12 ounces go for $102 at New York's Craft restaurant.

The invitation came from my cousin Bob Estrin, the owner of Lone Mountain, who's been in the cattle industry for decades. Three years ago, Bob took an expensive gamble when he began raising "Kobe-style" cows to sell for breeding. The Western Livestock Journal called his decision, "an absolute leap of faith." This auction was a moment of truth. Bob would find out if the Wagyu were worth it, and so would I -- by talking directly to the cowboys, observing the sale, and conducting my own taste test.

High Steaks 101
Wagyu (Wag-yoo) are a breed of cattle valued for their high-quality meat. Kobe are Wagyu that are raised in the Hyōgo Prefecture (region) of Japan from the Tajima-ushi strain of Wagyu. 

 
(A Wagyu bull)


Why are Wagyu so special?
As the owner of one of the first ranches to sell Wagyu in the U.S., Bob faces a wall of doubts and questions from potential buyers. Like us, they want to know how a steak could possibly be worth so much. Here's what he tells them:

-Wagyu are particularly delicious because their meat is more finely marbled with fat than any other breed. The marbling of a cut of meat is ranked by the USDA on a seven-point scale and is the main indicator of how good a cut is. Wagyu typically rate at the top of those charts. Bob notes, "the biggest mistake cooks make when preparing Wagyu is to cook it beyond the point of medium-rare. When that happens, the marbling disappears and the meat becomes tough."

 -A Texas A & M University study found that of any breed, Wagyu have the most monounsaturated fat (good for cholesterol) and omega-3s (great for your immune system, skin, and just about everything else). In other words, Wagyu steaks are richer AND healthier than ordinary Angus steaks!

-The cows from the three largest Wagyu suppliers in America are Natural-Fed. That means their feed does not contain hormones, growth implants, nor antibiotics.

Snob Alert :
Cows must be at least 50% Wagyu to be sold as Wagyu, according to the USDA and American Wagyu Association requirements. So, most Wagyu sold in high-end restaurants and food markets come from steers that are a cross of Wagyu and Angus.

100% Wagyu steaks come only from Japan or Australia and price even higher: Wolfgang Puck's Cut restaurant serves 6 oz. for $120, which is $50 more than its regular Wagyu steak. At Craft steakhouse, 100% Wagyu is sold by the ounce for $30. Bradley Ogden's in Las Vegas pushes it to $39 per ounce.

Is it true that Kobe are regularly treated to massages and beer? 
As I mentioned above, the taste of Kobe is due to the intricate way in which the fat is marbled in the beef. This is a genetic trait rather than a result of diet or treatment. Still, some small Japanese farms include massage and beer in their cow's regimen, but it's hard to get a straight answer as to why...

Beer: The few small farms in Japan that feed their cows beer or sake, probably do so to nourish the cows and induce hunger during the humid season when the cows are less interested in eating and/or to help the cows maintain a healthy amount of microbes in their large stomach.

Massages: One frequent explanation is that farms in Japan can be so small that the cows' muscles need to be massaged, so they don't cramp up. Another theory is that people may have thought farmers were massaging their cows when they were actually brushing them. (Some farmers brush their cow's hair because they believe it positively affects the meat.)


(Lone Mountain Ranch)

Is the steak industry buying it?
When Lone Mountain's auction ended and the auctioneer was done talking that fast crazy talk, Lone Mountain had sold all their full-blood Wagyu for an average of $10,000 each, $4,500 more than the last Wagyu that was sold in America. Their prize bull -- Yojimbo #634S -- sold for $35,000.

Was it worth it? Bob, Lone Mountain's owner, had a smile that said, yes. The Western Livestock Journal wrote that the Lone Mountain Wagyu were "extremely well received ... [C]ommercial producers are starting to see the niche marketing advantages to this limited pool of genetics."

 
(An auctioneer at the Lone Mountain Wagyu sale)

My Taste Test
The Wagyu rib-eye I ate at Albuquerque's Great American Land & Cattle Company restaurant was every bit as tender as promised. The taste was similar to a high quality dry-aged New York steak, but a bit sweeter. Its richness felt dangerously indulgent, as if the steak was actually cooked in butter a la Ruth's Chris, but knowing about the omega-3s made me feel less guilty.

Wagyu burgers run upwards from about $14. In a publicity stunt last month, Burger King in London launched a limited edition Wagyu burger for $190. The one I tried was cooked simply on a grill, right outside on the ranch. It was more tender than the majority of Angus burgers I've had, but truthfully, you can save money and create a similar experience with careful preparation and the right blend of non-Wagyu cuts.

My advice: If you're a person who spends time thinking about the texture of your food and you have some extra cash, Wagyu is a worthwhile super-special-occasion experience. If you cannot afford it, well, you're not alone, but here's something to consider...

Mail-Order Wagyu
Live large for a little less. You can mail-order Wagyu from several companies. This link takes you to Snake River Farms, where many top restaurants buy their Wagyu steaks. The prices might still be a shock, but you'll avoid restaurant costs such as drinks, tips, and additonal dishes.

To cook your mail-order Wagyu or any good steak, read this blog by Maggie Nemser, with a recipe from Wolfgang Puck's steakhouse Cut.

 

Average (542 Ratings): 4 out of 5 stars

  • 1. Posted by Kit on Fri, Jul 04, 2008, 7:15 pm PDT

    the wagyu is good except that the tongues are terrible. best beef tongue is still from australia.

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  • 2. Posted by abcstag@sbcglobal.net on Mon, Jul 07, 2008, 4:07 am PDT

    for the price of that steak i could feed a family of 5 for a week. in times like these people should spend wisely.

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  • 3. Posted by rolex on Mon, Jul 07, 2008, 4:08 am PDT

    People who pay this much to eat one meal scare me. There are people in this world who are STARVING!!

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  • 4. Posted by John S on Mon, Jul 07, 2008, 4:10 am PDT

    I'm not sure about Wagyu but after reading this article I think I'm going to try Wagyu. It is going to have to be a special occasion and after some research. I do like steak. This steak actually sounds healthy.

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  • 5. Posted by joel_stephens@att.net on Mon, Jul 07, 2008, 4:15 am PDT

    Very interesting and good article.

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  • 6. Posted by firstsoldier11b@sbcglobal.net on Mon, Jul 07, 2008, 4:22 am PDT

    Personally I think squirrel is about the best eating there is.

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  • 7. Posted by purplechic@verizon.net on Mon, Jul 07, 2008, 4:44 am PDT

    eating a squirrel will kill me because they are so gross i don't even want to think about eat them.I will have a heart atack.

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  • 8. Posted by purplechic@verizon.net on Mon, Jul 07, 2008, 4:45 am PDT

    eating a squirrel will kill me because they are so gross i don't even want to think about eat them.I will have a heart atack.

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  • 9. Posted by jawerner@verizon.net on Mon, Jul 07, 2008, 4:49 am PDT

    I'll take a prime NY steak anytime if it is prepared correctly. For a steak as good as any just visit Burns in Tampa. Wagyu is not much more than a put on for more money. Want to try something better than any steak mentioned, try Sturgon, the best tasting thing known to man. Problem, it is seasonal. The best is from Lake Michigan, fresh water vs. salt water, however, their both better than any steak from any place on earth.

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  • 10. Posted by DEAN S on Mon, Jul 07, 2008, 4:51 am PDT

    To pay this much for a steak you have to have more money than brains

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  • 11. Posted by lstone62@sbcglobal.net on Mon, Jul 07, 2008, 4:57 am PDT

    first our jobs, now our beef ... when does the outsourcing end?

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  • 12. Posted by toogoodforthiscrap on Mon, Jul 07, 2008, 5:08 am PDT

    Grass-fed organic beef from a small supplier has the same health benefits... I can buy an entire side, cut into steaks, roasts, ribs, etc. for about $3.00/lb. US. And the meat is just as good, for 1/10th the price.

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  • 13. Posted by tddriver7876@sbcglobal.net on Mon, Jul 07, 2008, 5:09 am PDT

    Being a Texan, how can anyone waste hard earned money on this type of beef when you can buy great angus tenderloin for around $10 a pound and love every bite of it. Please come to Cowtown "Fort Worth" and give it a try. you wont go back!!!!!

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  • 14. Posted by ROSEMARIE K on Mon, Jul 07, 2008, 5:18 am PDT

    What a farce!!!

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  • 15. Posted by sewmore on Mon, Jul 07, 2008, 5:18 am PDT

    This story is incomplete. Very uninformative story on these cows which is being "spoon fed" to us. The average person can google this and write this much on their own. How about actually answering some real questions on this story. What are these cows fed as opposed to what factory farms feed cows? What exactly does it mean that cows must be 50% Wagyu? Do the farmers who raise these cows also get subsidized by our government like the factory farms? How big of an industry dollar-wise is this? Does the raising of these cows help our economy? What's the difference between these cows and so-called "organic" cows? What is environmental impact of raising these and other cows for slaughter? Just a few of the questions that were left unanswered.

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  • 16. Posted by Frank T on Mon, Jul 07, 2008, 5:29 am PDT

    Lets get real! Why do the people here in this country keep falling for these dumb gimmicks and hype. People please wake up. This is why gas is so high. This is why most people can't buy a house now. We keep letting advertisers sale us anything at a higher price. Then we think that we have done something special .Please don't think that I'm saying this because I am poor. I have plenty of money, and I didnt get it by being dumb enough to pay $120.00 for a steak! If you just want to give your money away. I have a bridge in Brooklin that I can sale to you real cheap!

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  • 17. Posted by Wesley S on Mon, Jul 07, 2008, 5:31 am PDT

    I'm sure it is better,my wife and i,did go to the best places to eat in Dallas,up to,7 or 8 years ago,mostly steaks for me.Now we just go to Japanese,restaurants,to eat out,just like we both have japanese suv's.Sure i will buy it,but only,from my local japanese restaurant.

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  • 18. Posted by Debra G on Mon, Jul 07, 2008, 5:35 am PDT

    I thought everything in china was cheaper

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  • 19. Posted by james.wernersr@verizon.net on Mon, Jul 07, 2008, 5:35 am PDT

    I'll take a prime NY steak anytime if it is prepared correctly. For a steak as good as any just visit Burns in Tampa. Wagyu is not much more than a put on for more money. Want to try something better than any steak mentioned, try Sturgon, the best tasting thing known to man. Problem, it is seasonal. The best is from Lake Michigan, fresh water vs. salt water, however, their both better than any steak from any place on earth.

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  • 20. Posted by ciescos_ace_in_the_hole on Mon, Jul 07, 2008, 5:44 am PDT

    It really is as good as they say and it is as expensive as they say. There is a ranch just east of Dallas, TX that raises this style beef, and they have a restaurant. I tried it there, at a bit of a price break, and it is dangerously good. I must say though that a good tenderloin is a fine subsititute. But if you want to splurge, I say go for it!!

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  • 21. Posted by heidi s on Mon, Jul 07, 2008, 5:48 am PDT

    i am sorry but medium rare is gross. i hope they get worms. lol i like my stake medium well. sorry but no strak or any food in that matter is worth that much money especially with so many hungry people in the world

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  • 22. Posted by moonchild16@verizon.net on Mon, Jul 07, 2008, 5:55 am PDT

    Huh, Do the cows get happy ending after their massages?

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  • 23. Posted by Deepan Diyogirt on Mon, Jul 07, 2008, 5:59 am PDT

    It is with great sadness we Americans are unable to get our own marble cows. We have become socially castrated and our lives are at the mercy of forein lands.

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  • 24. Posted by richard2 h on Mon, Jul 07, 2008, 5:59 am PDT

    I raise grass fed Angus and they have the same characteristic as the Wagyu for a lot less. Corn fed beef is putting on a high percentage of fat and the mixture of fats is all wrong. Find some grass fed and you will not want any other kind.

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  • 25. Posted by Paul the English Guy on Mon, Jul 07, 2008, 6:07 am PDT

    one point.......nothing to do with cows! Typical for America..... some one commented that she "thought everything was cheap in China" Huh? Where did China come into the story..... Japanese cows lady... It's more about the blind leading the blind in this country....

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  • 26. Posted by on Mon, Jul 07, 2008, 6:14 am PDT

    For that price you could buy a steer get it slaughtered and sell what you don't eat and probably make a profit. This is outrageous! I still think people are crazy for paying $20 or more for a T-Bone steak.

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  • 27. Posted by julia4139@att.net on Mon, Jul 07, 2008, 6:16 am PDT

    what about the ribs and tri tip of these high price cow are they as good and that guy is right about sturgon that taste like chicken of the sea i want a $80 maine lopster and $100 STEAK RIGHT LOL SORRY U GUYS ARE NUTS $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

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  • 28. Posted by Perry M on Mon, Jul 07, 2008, 6:30 am PDT

    I agree with richard2 h. I have ate the koby beef while in Japan in the late 50's and early 60's and yes it was a tasty treat but when i got home and ate grass fed I could not tell any differance.

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  • 29. Posted by Dina K on Mon, Jul 07, 2008, 6:34 am PDT

    No way Jose! Give me a break! No matter how good is that beef, it's the same meat you're going to flush in the toilet. So if the cows get a massage, etc.... I guess we can apply this to the chicken, pig and so fort and so on to enable the meat to have a great taste.! ...Good luck!

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  • 30. Posted by felix g on Mon, Jul 07, 2008, 6:35 am PDT

    i would buy a delmonico steak before i would buy that wagyu and make it taste just as good.it`s all in the marinade!

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