Cattle-tech startup could help with high beef prices
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Illustration: Sarah Grillo/Axios
Breedr, a startup that's developed a digital system of record for cattle, today announced $27 million in new venture funding.
Why it matters: The price of beef is just too damn high, causing pain for ranchers, consumers, and politicians.
- Breedr isn't a price control platform, per se, but could lower costs by reducing uncertainty around cattle quality.
The big picture: Austin, Texas-based Breedr is the brainchild of Ian Wheal, who was raised on an Australian cattle farm by his rancher father.
- "The big change is moving from group-level information, which is what a lot of the old systems did, to individual animal tracking," Wheal tells Axios. "Our iPad app links to things like weigh scales and tissue samples, which then links to individual performance so that producers can make decisions on both genetics and genomics. ... We help track from embryo to carcass."
- He adds that "a good animal earns you $600 to $1,000 more than a bad animal."
Deal details: Partech led the Series B round, joined by insiders LocalGlobe and Outsiders Fund.
- Proceeds will be used, in part, to expand into the Australian and New Zealand markets. Some also will go toward recruiting more U.S. ranches, particularly those undergoing generational change.
Zoom in: Breedr currently has over 2.5 million cattle and over 2,000 global ranchers on its platform. It also has a cattle marketing group with nearly $500 million of trading on an annualized basis — which could help provide more consistent supply for meatpackers — and a financing fund for ranchers (i.e. Breedr owns some animals).
Zoom out: America's cattle herd is at its lowest level in more than half a century, in part due to drought, and calf crop projections remain historically small.
- All of that has kept beef prices very high, prompting President Trump last week to announce plans to import discounted beef without tariffs — a move that's angered ranchers and even some GOP allies.
- Wheal says that the White House move doesn't really impact Breedr's business, as it's more focused on premium cuts whereas what Trump announced was on lower-priced ground beef.
The bottom line: Farms are getting digitized.
