Tenderloin by the gramme: The most expensive beef cuts become big business

This story has significance for readers across Kenya and beyond.

“Can you give me 500 grammes of tenderloin, 400 grammes of ribeye and T-bone? You might also get someone saying, ‘I just want a nice, decent one-inch steak of this cut and this cut,’ just to have that experience and choose which one I prefer,” says Omar Tamimy, the director of Merino Meats.

This is increasingly becoming the new way of ordering as meat lovers move beyond buying ordinary cuts sold by the kilo to premium steaks that can be ordered in portions as small as 250 grammes — enough to offer a taste of richer flavour, greater tenderness and a more refined dining experience.

Kenya’s beef market is carving out a new niche: ribeye, tenderloin, porterhouse, striploin, picanha and t‑bone are no longer just indulgences in five-star hotels and upscale steakhouses. People are buying to cook in their homes.

T-bone and ribeye are among the fastest-moving cuts.

“These sell really fast because they are not as pricey as some of the other cuts. Some cuts are similar, with the main difference being whether they have a bone or are deboned. But overall, they all have a steady demand,” he says.

What makes a cut premium?

The price and rarity is built on scarcity, but also the tenderness, flavour, marbling and consistency.

Out of an entire cow carcass, only 10 to 13 percent qualifies as premium cuts. Yet those few kilogrammes often command the highest prices, making them one of the most profitable products for butcheries, restaurants and beef processors.

“Premium cuts usually range between Sh1,000 and approximately Sh1,800 to Sh1,900 per kilogramme,” he says.

The price, he says, is mostly driven by the low yield of premium cuts from each animal, as well as the losses incurred during trimming. For instance, Mr Tamimy says, a 300-kilogramme animal can produce a maximum of about five kilogrammes of tenderloin.

“When you compare that with a 300-kilogramme cow, that’s really not much. A lot of it comes from the availability of the cuts in each animal, and then there are also losses from trimming.”

Once the premium sections are trimmed, some of the remaining meats cannot be sold as a premium steak, but are processed into products such as pet food.

“All this translates into a slightly significant price increase when it comes to premium cuts,” says the retailer who stocks ribeye, porterhouse, tenderloin and striploin, alongside premium lamb cuts such as lamb chops and racks and fish fillets including red snapper.

A changing consumer

Another Nairobi premium meat retailer, Cohen Kibindu, says the change in consumer behaviour has become much more noticeable over the past five years.

“People nowadays walk into a butchery and ask for ribeye, tenderloin or T-bone because they’ve travelled, watched cooking programmes or seen recipes online,” he says.

“Sometimes customers ask us how to cook the steak, what herbs to use and whether they should grill or pan-sear it. Selling the meat is only part of the business,” Mr Kibindu adds.

As demand from households grows, so does the business opportunity, with restaurants, hotels and catering companies emerging as important buyers to expand their premium menus.

“We have so much variety when it comes to cuisines from all around the world. For example, Brazilian cuisine particularly likes to create picanha, which is a rump cap that comes from the hindquarter. Restaurants are investing in premium menus to distinguish themselves,” Mr Tamimy says.

But selling premium cuts is not as straightforward as selling ordinary beef. At those prices, consumers expect more than just a good piece of meat — they want consistent quality, tenderness, flavour, presentation and the assurance that they are getting what they paid for.

“Hotels, for instance, expect every steak to have the same size, thickness and taste quality every single time. That means we have to source carefully and maintain strict cold-chain standards from the seller to the slaughterhouse,” Mr Kibindu says.

Most times, they struggle with limited supply too.

“You cannot create more tenderloin than the animal naturally has. Once it’s sold, it’s sold,” he says.

“Our biggest challenge is maintaining a consistent supply of high-quality livestock. There are also rising input costs and fluctuations in market prices, sometimes caused by livestock shortages,” Mr Tamimy adds.

Balancing the carcass

The premium business also creates an unusual inventory problem, where a retailer cannot buy only the parts that the customers want.

Mr Tamimy says managing supply is also important during the peak periods such as November and December.

“You can’t be taking in a lot of supply of beef just to get a few particular cuts. If we know we are getting tenderloin steaks and ribeyes from a specific section, we tend to take more hindquarters because that is where most of these premium sections come from.”

During peak seasons, the business balances full carcasses with quartered or half-sectioned carcasses to meet the demand meant for both premium and ordinary cuts.

What are consumers paying for when it comes to premium meat?

Timothy Kipng’etich, a trainer and meat grader at the Meat Training Institute, adds that premium beef begins with understanding the animal itself.

“Many people think the most expensive cut automatically becomes a premium cut, but premium cuts are defined by quality and where they come from on the carcass,” he says.

Most premium cuts, including tenderloin, T-bone, striploin, topside and silverside, are obtained from the hindquarter.

“The muscles in those areas do very little work during the animal’s lifetime, which makes them naturally tender. Compare that with muscles such as the neck, brisket and shank, which support the animal’s movement. Those muscles develop more connective tissue and collagen, making the meat tougher,” Mr Kipng’etich explains.

Breed also matters.

Mr Kipng’etich says breeds with better feed conversion rates, such as Boran and Charolais, generally produce better-quality carcasses suitable for premium markets.

Age is equally important. “The younger the animal, the more tender the meat. As animals grow older, the collagen fibres become tougher, reducing tenderness,” he says.

He notes that bulls intended for premium beef are commonly slaughtered at around 18 months, while heifers are processed at about 42 months.

The feeding practices further influence quality.

Consequently, consumers often associate premium steaks with marbling, which is the fine streaks of fat running through the muscle. “Marbling contributes to tenderness, juiciness and flavour,” he says.

He adds that grain-fed cattle would produce more marbling than grass-fed animals.

“Some customers prefer less fat, forcing butcheries to trim away some of the marbling before sale. That also affects profitability because trimming reduces the saleable weight.”

Even after slaughter, the work is far from over. Proper ageing allows natural enzymes to break down muscle fibres, which improves the tenderness and flavour over time.

“Ageing is one of the factors that enhances the eating quality of premium beef,” Mr Kipng’etich says.

He cautions that expensive meat should not be mistaken for healthier meat.

“Premium pricing doesn’t necessarily mean healthier meat. Good farming practices, proper feeding and safe production systems remain the most important determinants of quality.”

Reporting originally appeared via Business Daily. Read the full source for additional context.