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Yoshinoya Diversifies Into Ostrich Business Amid Rising Beef Costs

The company introduces ostrich-based cosmetics and limited meat offerings to counter high beef prices
Japan
y 9861.TSE Mid and Small Cap 2000
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Yoshinoya Holdings, the operator of Japan’s popular gyudon beef bowl chain, is branching into the ostrich business as it looks to mitigate the impact of rising beef costs and explore new revenue streams. The company announced plans to launch a skincare line using ostrich oil and offer ostrich meat dishes at its restaurants in limited quantities.

The decision comes as Yoshinoya grapples with soaring beef prices, driven by increased global consumption and supply chain challenges. The wholesale price of frozen U.S. beef belly, a key ingredient in Yoshinoya’s gyudon, has surged nearly 80% over the past year. This has forced the company to raise prices on its signature dish, highlighting the need for alternative sources of profit.

Ostriches, known for their efficient feed-to-meat conversion and lower environmental impact compared to cattle, are being positioned as a sustainable option. Yoshinoya’s venture into ostrich farming, through its subsidiary Speedia, includes both meat production and the creation of cosmetics derived from ostrich oil, which is praised for its skin-friendly properties.

The company’s new ostrich set meals, priced at 1,683 yen, are available at 400 locations across Japan in a limited run. While ostrich meat is still a niche product in Japan, Yoshinoya aims to gradually expand its presence in the market, using its extensive restaurant network to familiarize consumers with the product.

 

 

 

 

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