Why Two Steaks From the Same Animal Have Different Prices

Every so often someone will look at the case and ask,

“Why is that steak $X and this one $Y if they both come from the same animal?”

It’s a fair question.

The short answer is that not all parts of an animal are produced in equal amounts, and not all parts are demanded equally.

That’s where things get interesting.

⸻

Let’s Start With Filet Mignon

Filet mignon is the easiest example.

It is, anatomically, the most tender muscle on the cow. That’s not marketing. That’s just how the muscle functions. When cooked properly, it’s going to be fork tender.

But here’s the reality.

From a 1,500-pound animal, you might get around five pounds of fully trimmed tenderloin. That’s both sides combined. Once you factor in tapering and trim, that usually translates to somewhere around eight to ten good 8-ounce filets.

Eight to ten steaks.

From an entire animal.

Percentage-wise, that’s roughly half a percent of the carcass.

So right away, you’re dealing with something that is naturally scarce.

⸻

Now Add Demand

Scarcity alone doesn’t explain price. Demand does the rest.

Filet didn’t become popular by accident. The beef industry marketed it heavily beginning in the 1980s. It was positioned as the premium cut. It’s tender. It’s lean. During the low-fat diet era, that combination really resonated.

Fast forward decades later, and that perception is still there.

Demand for filet is steady. It’s not wildly seasonal. Valentine’s Day will bump things, sure. But overall, people consistently want it.

So you have:

• Very small supply

• Very consistent demand

That’s high school economics. When supply is low and demand is steady, price adjusts to balance the two.

Not because anyone is trying to be clever. That’s just how markets work.

⸻

What About Ribeye?

Ribeye is a good contrast.

It’s not as scarce as filet, and it’s not lean. But it’s extremely flavorful because of its fat content. People know it. They trust it. They’ve cooked it before.

A ribeye cut an inch thick might weigh 16 to 20 ounces. Selling one ribeye moves more pounds than selling one 8-ounce filet. That affects revenue patterns, even if price per pound differs.

Different attributes. Different supply levels. Different demand patterns.

Same animal.

⸻

Is One “Better”?

That word gets thrown around a lot.

People ask me what my favorite cut is, and I usually tell them it’s a moving target.

If it’s just me and I want a steak, I’ll grab a ribeye. I care about flavor and ease of cooking. Ribeye gives you margin for error.

If I’m feeding four to six people, I might cook a Wagyu tri-tip instead. It slices well. It feeds a group efficiently. It makes sense for that situation.

That’s the lens I use.

Not “better.”

More like, “What makes sense here?”

Every cut excels at something. Tenderness is one attribute. Flavor is another. Fat content matters. Cooking method matters. Headcount matters.

Once you start thinking that way, the pricing differences start to make more sense.

⸻

The Bigger Picture

If someone says, “Fine, then just produce more filet,” the math doesn’t cooperate.

To get more filet, you don’t just produce more filet. You produce more cattle. And raising a beef animal takes about two years. Land, feed, labor, risk. It’s a long supply chain.

So even small changes in demand ripple backward slowly.

It’s a bit of a dance. Demand moves. Supply responds over time. Price manages the gap in between.

Your butcher shop sits at the end of that system. We don’t invent the imbalance. We operate within it.

So when you see two steaks from the same animal at very different prices, it’s not arbitrary.

One is abundant.

One is scarce.

And the market has been voting with its dollars for a long time.