MercoPress. South Atlantic News Agency

Chile has become a producer and exporter of premium Wagyu (Kobe) beef

Sales have quadrupled over the last five years

The traditional rivalry between Chile and Argentina is likely to be turned up a notch with the news that Chile could be soon challenging its meat-famous neighbour with the quality of its beef.

The premium beef industry in Chile has enjoyed US$60 million in exports and national consumption. The rise in national consumption has been attributed to higher affluence and a recent increase in exclusive butchers in eastern Santiago.

Wagyu beef, which comes from the Japanese breed of cattle of the same name, has enjoyed sales increases of 50%, even though prices can be as high as 25,000 pesos (US$47) a kilo and almost 30,000 pesos (US$56) a plate in specialized restaurants.

Wagyu, also known as Kobe beef, is an expensive cut renowned for its taste, tenderness and juiciness, and for its marbled fat, something that lends it an extra succulence. Many stories claim that the Wagyu cattle are treated like royalty by their Japanese breeders; fed beer and given daily massages to relax their muscles, all so they can be sold for a fortune in chic Tokyo restaurants.

Ninety percent of the premium beef sold in Chile, including Wagyu, comes from Chilean producers. According to Esteban Plaza, commercial manager of Wagyu Chile, one of the country’s top breeders, the local market reported sales of US$1 million in 2009 and hopes to sell more than US$1.5 million this year.

Chile has produced the up-market beef since 1999, while Argentina introduced it in 2001. Chilean beef producers are considered to have the capacity to compete with their eastern neighbours and in some cases, even, to do better than them, said Alejandro Anwandter, general manager of premium meat producer Frigosor.

The most important sales channels are restaurants and hotels, followed by supermarkets and direct sales. The majority of Chile’s Wagyu beef is exported to the United States, Europe and Japan, at between US$70 and US$130 a kilo.

While the price tag of US$47 a kilo might seem steep, Chilean Wagyu is relatively reasonable when compared to its price in other countries. The exclusive London department store Selfridges sells “the world’s most expensive sandwich,” made with imported Chilean Wagyu, for a hefty US$127, while top New York restaurants sell imported Japanese Wagyu steaks for as much as US$250.

According to El Mercurio, the typical Chilean consumer of premium beef is male, between the age of 30 and 40, and tends to live in the eastern (upscale) area of the city and frequent exclusive restaurants as well as specialized butchers.

Suppliers tend to see a rise in sales over the summer months, August to late January in Chile, as well as long weekends and festivals. Recently on Father’s Day, sales of premium beef in specialist shops and supermarkets increased 30 to 50%.

A recent ban on all Japanese beef exports because of a suspected outbreak of foot-and-mouth disease has resulted in a Wagyu beef shortage in the United States. With Chile already one of the country’s importers, Chile may see its exports increase even more in the coming months.

By Jessica Jones – Santiago Times