June 28, 2010

Chile challenges Argentina in premium beef quality

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 ARS25,000 (US$47) a kilo and almost ARS30,000 (US$56) a plate in specialised 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.

Meanwhile, 90% of the premium beef sold in Chile, including Wagyu, comes from Chilean producers. According to reports, 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 US, Europe and Japan, at between US$70 and US$130 a kilo.

A recent ban on all Japanese beef exports because of a suspected outbreak of FMD 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.