Omaha Steaks CEO Talks Beef Prices, Demand

Summary

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Bloomberg Talks — Omaha Steaks CEO Talks Beef Prices, Demand

Podcast: Bloomberg Talks
Episode Date: November 25, 2025
Guest: Nate Rempe, CEO of Omaha Steaks
Main Theme: U.S. beef prices, demand, and the supply chain dynamics as Americans head into Thanksgiving

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Episode Overview

Just ahead of Thanksgiving, the episode dives into the unique dynamics behind skyrocketing beef prices in the U.S., persistent consumer demand, and the complex supply chain challenges impacting the beef industry. The host interviews Nate Rempe, CEO of Omaha Steaks, who shares insights on how his company is managing these conditions and why rebuilding the nation's cattle herd is key to restoring supply and stable prices.

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Key Discussion Points & Insights

1. State of the U.S. Beef Market

Time: 00:40–01:13

• Despite inflation, tariffs, and reduced cattle herd sizes, American demand for beef remains robust.
• Beef prices are high due to a classic supply-demand mismatch.
• Nate Rempe explains that Omaha Steaks leverages “flash freezing” and commodity buying to keep consumer prices stable.

Nate Rempe: "The demand is really high and the supply is low...But, you know, watching the beef market now has been just fascinating from my seat, seeing what it's doing, particularly in grocery stores across the country." [01:13]

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2. Omaha Steaks’ Pricing & Supply Chain Approach

Time: 01:13–02:14

• Omaha Steaks utilizes its vertically integrated supply chain, inventory management, and market timing to control costs.
• They’ve maintained their premier gift package at $89.99 for another year, despite broader market price increases.

Nate Rempe: "Our premier gift package, that perfect gift, is going to be 89.99 again this year. ...This is one of the great moments for Omaha Steaks to really step forward and shine and leverage and flex our muscle." [01:34]

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3. Domestic vs. Imported Beef Supply

Time: 02:14–03:34

• Only about 13–14% of beef consumed in the U.S. is imported, and 80% of that is lean trim for ground beef.
• The majority of premium cuts are supplied domestically, underscoring the importance of rebuilding the national herd.
• Remedies to high prices won’t be found in imports; expanding the domestic herd is essential but time-consuming (six–eight years).

Nate Rempe: "Rebuilding that herd is the inevitable requirement for bringing supply up...that’s a six to eight year process to kind of get back to what would be considered a surplus in the size of the herd." [03:13]

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4. Heifer Retention and Herd Rebuilding

Time: 03:34–04:47

• Ranchers’ current incentives (high beef prices) make them send more female cows (heifers) to market instead of keeping them for breeding.
• This practice—less heifer retention—has driven the U.S. cattle herd size to a 70-year low.
• Early signs of heifer retention are emerging, but the market will get tighter before improving.

Nate Rempe: "When you make that heifer retention decision, it actually further exacerbates the size of the herd because fewer animals are going to market. So to say it’s going to get worse before it gets better." [04:32]

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5. Consumer Behavior & Protein Demand Swings

Time: 04:47–05:45

• Some consumers are “trading down” from premium cuts to more affordable steaks or switching to chicken but overall beef remains a staple due to its satisfying flavor and texture.
• Omaha Steaks observes adventurous purchasing within beef categories as consumers explore different cuts.

Nate Rempe: "We are seeing some trade down kind of inside the product set of beef. You know, those consumers that may have opted for the filet mignon are now exploring how amazing the top sirloin is or...a strip or a ribeye." [05:27]

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Notable Quotes & Memorable Moments

• On pricing strategy:
  “Our premier gift package, that perfect gift, is going to be 89.99 again this year.”
  — Nate Rempe [01:34]

• On herd rebuilding timeline:
  “That’s a six to eight year process to kind of get back to what would be considered a surplus in the size of the herd.”
  — Nate Rempe [03:28]

• On heifer retention impacts:
  “When you make that heifer retention decision, it actually further exacerbates the size of the herd because fewer animals are going to market.”
  — Nate Rempe [04:32]

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Important Segment Timestamps

• Beef market overview & pricing: 00:40–02:14
• Domestic vs. imported beef supply: 02:14–03:34
• Herd rebuilding & heifer retention: 03:34–04:47
• Consumer behavior & shifting protein demand: 04:47–05:45

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Episode Tone & Takeaways

The episode delivers a clear-eyed look—via direct, practical language from Nate Rempe—at the compounding challenges and slow solutions impacting the U.S. beef industry. Despite market volatility and historic supply constraints, strong demand persists, and firms like Omaha Steaks lean into operational strengths to maintain value for customers. The outlook? Patience is required, as rebuilding the American cattle herd will be a lengthy but necessary process.

Transcript

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[Bloomberg Audio Studios Announcer]

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[Podcast Host]

All right, we're just two days out from Thanksgiving, but forget the turkey because Americans can't get enough of beef. The US Is the world's largest consumer of red meat, but inflation, tariff pressures, and shrinking cattle herds have sent prices soaring. Despite this, though, our next guest says that American demand for beef remains. Song I'm pleased to welcome Nate Rempe. He is the CEO of Omaha Steaks. Nate, great to have you with us. And we just had that chart up of beef prices. Talk us through what you're seeing in your seat when it comes to the cost of your steaks.

[Nate Rempe]

Yeah, I mean, the demand is really high and the supply is low. So my business focuses a lot on the power that we built over 100 years to leverage flash freezing, where we can buy in the commodities market. When we see little breaks in the market, build that inventory and then leverage, leverage, you know, some of our supply chain leverage, our processes and automations to hold our prices. Pretty static. In fact, America is going to be, I think, pleasantly surprised when they come to Omaha steaks.com they're going to find that our, our premier gift package, that perfect gift, is going to be 89.99 again this year. And I told my teams internally this is one of the great moments for Omaha stakes to really step forward and shine and leverage and flex our muscle. That is that vertical inte and that ability to play that commodities market. But, you know, watching the beef market now has been just fascinating from my seat, seeing what it's doing, particularly in grocery stores across the country.

[Podcast Host]

Well, talking about the beef market more broadly, outside of just your business, I mean, when it comes to matching supply and demand, how does the US Necessarily boost supply? Or is it just inevitable that you're going to have to try to source beef from overseas?

[Nate Rempe]

Yeah, I think there's, there's a lot to be learned about the supply chain of beef in America. Only about 13 to 14% of the total beef consumed in America is imported. And of that percentage, about 80% is lean trim that goes into ground beef. So in particular, you know, portions, steaks and roasts, and that largely come from the domestic supply and, you know, Those percentages really give you a sense for how important building the domestic herd is to meeting the demand of America's desire for red meat. And so, you know, imports are an important part of the overall picture, but it's not the solve, it's not the silver bullet to addressing the cost of beef in America. Rebuilding that herd is the inevitable requirement for bringing supply up. And that is not a fast process, Katie. That's, you know, that's a six to eight year process to kind of get back to what would be considered a surplus in the size of the herd.

[Podcast Co-host]

I am curious though, Nate, how we do that. And by how, I mean, is there a real push to do that beyond just yourself? Meaning a more coordinated push?

[Nate Rempe]

Yeah. Is a decision that ranchers and feedlot owners make. It's called heifer retention. It's an industry term that describes a holding back the female animal to build the herd as opposed to sending it to market. Now, as you might imagine, when demand is high, there's a lot of motivation for ranchers and feedlot operators to send those female animals to market and take advantage of the, the optimal live price. But that comes at a cost. And over the last number of years, because of the demand for beef, those female animals have gone to market and have not calved. And the end result is the lowest herd size in 70 years. And so to, to change that is to make that decision to hold that animal back, to build the herd. And we're seeing, you know, early signs of that. But what's super guys, is that when you make that heifer retention decision, it actually further exacerbates the size of the herd because fewer animals are going to market. So to say it's going to get worse before it gets better.

[Podcast Co-host]

Yeah, just real quickly, we only have about 30 seconds here, but I am curious just about long term trends, you know, so looking really further out and consumption trends and consumption patterns, and I know we've seen oscillations where, you know, we all favor chicken for a while, then it's beef, then it's pork, back and forth. How do you sort of manage those swings?

[Nate Rempe]

Yeah, I mean, you know, America trades down really in any product set. And as it relates to beef and chicken, you know, we're seeing some consumers opt for chicken, but it's just not as satiable as a protein. It really just doesn't deliver like beef does. And so we are seeing some trade down kind of inside the product set of beef. You know, those consumers that may have opted for the filet mignon are now exploring how amazing the top sirloin is or, you know, a strip or a ribeye and exploring up and down the category there and really pushing themselves to educate on where else they can get their beef. All right, Nick, Like Omaha Steaks.

[Podcast Host]

All right.

[Podcast Co-host]

Got to leave it there. Nate Rempe, of course, the CEO of Omaha Steaks.

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