Omaha Steaks calls beef market the worst in its history and bets on tenderness

Omaha Steaks CEO Nate called the beef market the worst in the company’s history. He said cattle numbers were at their lowest in 76 years while demand for beef remained elevated, pushing prices up. Supply cannot be increased quickly: he described beef production as a biological process involving an 18-month gestation, followed by the animal’s growth.

In response to higher prices, Nate said the company is working to add value for customers and improve its products. He cited USDA Certified Tender as an example: the company tests steaks for tenderness and, he said, offers customers only the most tender ones.

Nate does not believe the growth of plant-based meat is connected to the current cattle shortage. He attributed the shortage mainly to beef demand and COVID’s long-tail effects. Around 2017, he wondered whether plant-based meat would become significant, but said that after trying an Impossible Whopper he concluded it was not a problem for beef.