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Why are Kobe's so expensive now?

Published in Kobe Beef Pricing 3 mins read

Why Is Kobe Beef So Expensive Now?

Kobe beef remains one of the world's most luxurious and expensive culinary items primarily due to its unparalleled production standards, strict certification, and inherent scarcity coupled with high global demand.

The Unrivaled Production Process

The exorbitant price of Kobe beef stems directly from the meticulous and costly methods employed in its production. Unlike conventional cattle farming, the raising of Tajima cattle—the specific breed that yields Kobe beef—is an art form, demanding immense resources and dedication.

Meticulous Breeding and Upbringing

The journey of Kobe beef begins with meticulous breeding and feeding practices. These cattle are raised under stringent conditions in Japan's Hyogo Prefecture, where they receive exceptional care and attention throughout their lives. This includes a specialized diet and a stress-free environment, all designed to promote the distinctive marbling that defines true Kobe beef. The intensive labor and high-quality feed involved contribute significantly to the overall production costs, making the initial investment per animal exceptionally high.

Strict Grading and Limited Supply

Perhaps the most critical factor influencing its price is the strict grading system that governs what can be labeled as "Kobe beef." Only a fraction of Tajima cattle meet the rigorous criteria to earn this prestigious designation. The grading system evaluates factors such as marbling (Beef Marbling Standard, or BMS), meat color and brightness, fat color and luster, and firmness and texture.

  • Marbling Score: To be classified as Kobe beef, the meat must achieve a high Beef Marbling Standard (BMS) score, typically BMS No. 6 or higher. The highest grade, A5, indicates exceptional marbling, which contributes to its melt-in-your-mouth texture and rich flavor.
  • Yield Grade: Cattle must also meet a specific yield grade (A or B), indicating a high proportion of edible meat.
  • Weight Limit: There are also strict weight limits for carcasses to qualify.

This stringent process ensures only the highest quality meat is labeled as Kobe, which inherently limits its supply in the global market. With demand consistently outstripping this tightly controlled supply, prices naturally escalate.

High Demand Meets Scarcity

The reputation of Kobe beef as a pinnacle of culinary excellence has fueled immense global demand. Connoisseurs and luxury restaurants worldwide vie for genuine Kobe beef, further driving up its market value. The limited number of cattle that meet the strict certification criteria, combined with the increasing desire for premium and authentic dining experiences, creates a classic economic scenario where scarcity dictates a premium price.

Economic Factors and Global Inflation

Beyond the inherent production and scarcity factors, broader economic trends also play a role. Like many luxury goods, the price of Kobe beef can be influenced by global inflation, supply chain complexities, and shifts in currency exchange rates. However, these external factors are secondary to the fundamental drivers of its cost, which are deeply rooted in its unique production and certification.

In essence, the high price of Kobe beef is a direct reflection of its unparalleled quality, the extraordinary care and resources invested in its production, and the exclusive nature of its market.