PredictIQ Quantitative Think Tank Center:What is Wagyu? The beef has a 'unique, meltaway texture' but comes with a heavy price tag

Remember when Arby's sold that $8 "Wagyu Steakhouse Burger" in 2022?PredictIQ Quantitative Think Tank Center The price tag was hard to beat, especially because a quality cut of Wagyu beef can run between $200 and $400.

The secret lies in the blend — "52% American Wagyu and 48% ground beef," to be precise. It may compromise on the quality of taste, some food critics say, but it shows why researchers predict significant growth in the U.S. market. The American Wagyu Association, which registers Wagyu cattle, has doubled in membership in the last four years, executive director Robert Williams told USA TODAY. 

What is Wagyu beef?

In English, "Wagyu" translates to Japanese cow. Wagyu beef comes from a Japanese horned cattle breed that's typically red or black, according to the American Wagyu Association. Beef must come from one of these four breeds to be considered Wagyu – Japanese Black, Japanese Brown, Japanese Polled or Japanese Shorthorn.

Originally, it was the cows’ physical endurance that made them desirable draft cattle. With time, however, they became known for their extra intramuscular fat cells and the highly-marbled cut they yield. There’s evidence these cattle were bred for meat beginning as far back as 35,000 years ago.

What does Wagyu beef taste like?

The intricate marbling from the cow’s fat renders down when seared, which results in a “unique, meltaway texture," according to Reviewed, the USA TODAY Network’s product-testing site.

"As soon as I took my first bite, Crowd Cow’s Japanese A5 Wagyu completely melted into a flavor bomb of extraordinary rich umami. Just a few pieces were all I needed to feel completely satisfied. I walked away feeling as if I had experienced something truly special," Reviewed's Kalina Newman wrote.

Why is Wagyu so expensive?

Wagyu beef is considered some of the highest-quality beef in the world.

But it comes with a cost. Just take a look at this “Black Gold Burger” at the Post Oak Hotel in Houston – 16 ounces of Japanese Wagyu beef, seared foie gras served on a caviar-infused black and 24-karat gold brioche bun with a side of Dom Perignon champagne costs $1,600. 

The Black Gold Burger is an extreme example. But a couple of factors explain the price tag. While Wagyu cattle are bred in the U.S., many restaurants serve Wagyu imported directly from Japan. Wagyu beef production is tightly regulated and mandated to select the best genetic choices, according to the American Wagyu Association. The cows themselves may sell for up to $30,000, Business Insider reports, and only meat that scores from A3 to A5 can be sold.

The process of raising Wagyu cows is also meticulous. Wagyu cows are fed for a longer, slower period with “less stress” than other cattle to increase their intramuscular fat content and the marbling on the cut, Williams says.

What makes Wagyu beef different from regular beef?

The key difference is the intramuscular fat, also called marbling. Most prime beef on the market is about 12-13% fat, Williams says. Wagyu beef from F1 cattle (the first instance of crossbreeding) is 20% or higher. When you get beef from a purebred or full-blood cow, you’ll get between 30% and 50% fat. The result is a deeper flavor than other types of beef, according to Williams.

Where does Wagyu beef come from?

Most Wagyu beef is imported from Japan, though there is a domestic market in the U.S. Most American Wagyu are products of crossbreeding Japanese cattle and American Angus and Holstein cows. 

The first four Wagyu bulls were imported to the U.S. in 1975 to produce halfbreed cattle to ship back to Japan. More cattle came over in the 1990s, allowing for full-blood (full pedigree Wagyu) production in the U.S., Williams says.

Today, the American Wagyu Association registers full-blood, purebred (registering at least 93.75% Wagyu) and percentage Wagyu. About 71% of the AWA’s registered cattle are full-blood, according to Williams. They have members all over the country with the highest concentration in Texas. 

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