[Beef Sommelier Co., Ltd.] Science of \"Quantifying Beef Deliciousness.\" How the 12-Month-Old Beef Quality Prediction AI Triggers Livestock & Distribution Revolution

Resolving Brand Proliferation through Science: Challenging the 300+ Brand Beef Chaos

Hello everyone, I am Toshiki Matsuoka, CEO of Beef Sommelier Co., Ltd. Today, I would like to present our game-changing AI technology that enables the world's first quantitative evaluation of beef quality and yield at an early stage, pursuing \"visible deliciousness.\"

Our vision is to enable Wagyu cattle producers to grow their ideal high-quality beef without hesitation. Simultaneously, we aim to visualize beef quality and taste scientifically for distributors and consumers, creating a transparent market where everyone can trade with confidence.

Currently, due to yen depreciation and global instability, the costs of imported cattle feed and energy are skyrocketing. This severely impacts the business of breeding and fattening farmers. To survive, establishing a unique \"brand\" for their cattle is more critical than ever.

However, we face a major challenge: brand proliferation. Today, there are over 300 brand beef names in Japan. Since there are no legal definitions for brand beef, I could theoretically ship cattle under the name \"Matsuoka Beef\" tomorrow. In addition, the traditional grading system based primarily on the marbling ratio (such as A5 and A4) fails to convey \"true deliciousness\" to consumers and buyers. Therefore, an objective, quantitative index is highly demanded.

Typically, 60% of the yield and quality of beef is determined by genetic factors (pedigree). This can be analyzed through \"genomic evaluation.\" However, the remaining 40%, determined by fattening factors (how individual farmers raise the cattle, their environment, and feed), had no method of visualization. Consequently, even for cattle with the same pedigree, the final quality at shipment varied significantly depending on the farmer's methods, causing price fluctuations.

Farmers have tried using high-cost ultrasound echography to measure internal meat quality in live cattle. However, ultrasound image analysis requires highly specialized skills, and the shortage of technical experts has left these machines underutilized. Furthermore, IoT solutions like cameras and collar sensors can track cattle activity (detecting illness) but cannot visualize internal meat quality.

Predicting Future Yield and Quality at 12 Months: The \"AIBF Technology\"

We solved this challenge using \"AIBF (AI Beef) Technology,\" the world's first system developed by Kinki University.

Usually, beef cattle are shipped around 30 months of age. With our technology, we take a small blood sample from cattle at around 12 months of age—long before shipment. By detecting specific proteins (biomarkers) in the blood and analyzing them through our AI model, we predict with high accuracy what the marbling quality and meat yield will be when the cattle are shipped at 30 months.

Through this quantitative blood test, we can map the quality distribution of cattle groups for each producer or brand.

For example, when mapping a group shipped under a specific brand, we can identify outlier cattle that fall below the brand's quality standard. These outliers harm brand reputation when consumers experience a taste different from what they expected. We can detect and address these outliers at an early stage.

This technology also transforms distribution and sales.

We provide distributors and buyers with a \"Wagyu Taste Map,\" classifying Wagyu characteristics similar to wine or sake. Furthermore, we issue a scientific \"Certificate of Deliciousness\" for cattle that consistently meet brand standards.

This enables lesser-known Wagyu brands raised by local farmers to secure their proper value (higher trading prices) by proving they match the quality of famous brands like Kobe or Matsusaka beef. It gives buyers confidence and acts as a powerful export credential.

Optimizing Feed and Aiming for the Wagyu Olympics: 2-Month Feedback Loops

For producers, this early prediction enables proactive actions.

Visualizing cattle quality trends at 12 months allows farmers to adjust feed design, such as adding specific nutritional supplements or switching formula feeds.

In the past, farmers had to wait until shipment at 30 months to see if feed adjustments were successful, making it a gamble. With our technology, farmers can take another blood sample 2 to 3 months after adjusting the feed to confirm in real-time if the biomarkers have improved. This enables scientifically proven feedback loops.

In the dairy industry, analyzing daily milk components to adjust feed is a standard practice. However, in the beef industry, the lack of mid-term tracking prevented the development of optimized feed software. We are collaborating with major feed manufacturers to scientifically optimize feed using AIBF.

Currently, we are introducing our cattle management AI to a top-tier farmer who won the previous \"Wagyu Olympics\" (National Competitive Exhibition of Wagyu) to help them secure consecutive championships. We are also defining scientific profiles for new local Wagyu brands and expanding adoptions across Japan with investment and sales support from the JA Group (such as JA Hiroshima, JA Ehime, and JA Miyazaki). Additionally, we have initiated joint PoC validations with major meat distributors like Itoham Yonekyu Holdings Inc.

Our team consists of four full-time members, including two top-tier researchers from the Kinki University lab where this technology was invented. We will use the raised funds to recruit AI data analysis experts, specialized sales representatives for livestock distribution, and a CFO to strengthen our business structure.

Over the next decade, we will establish AIBF as the defacto standard in the global Wagyu and livestock markets. In the future, we plan to expand this biometric AI analysis to other livestock and human wellness sectors. We look forward to hearing from investors who share our vision. Thank you very much.

Questions & Answers

Commentator (Mr. Ito): Thank you, Mr. Matsuoka. While the Wagyu market is massive, the evaluation of taste and the fattening process have remained a black box. Addressing this with a single blood test and AI has high potential.

University-born tech startups often depend heavily on the founder's passion and background to successfully commercialize technology. Could you share how you plan to scale this business and tell us about your background?

Mr. Matsuoka: Thank you for the question. Personally, I graduated from the Kinki University Agricultural Department lab where this AIBF technology was invented. I was the first student to earn a Ph.D. under Professor Matsumoto. Since then, I have been deeply involved in Wagyu genome research and established connections with livestock experiment stations and farmers during my student years.

After earning my Ph.D., I left academia to work as a researcher at the University of Michigan, joined a biotech startup from Osaka University, worked in the life sciences sector, and spent 8 years launching and scaling the Japanese division of a Spanish genetic testing company in the reproductive medicine sector.

Interestingly, many genetic testing technologies used in human reproductive medicine were originally developed in the livestock sector for cattle breeding before being adapted for humans. Through my previous role, I mastered the process of launching genetic testing services, navigating regulations, and scaling the business. When I heard about this cattle biomarker technology from Prof. Matsumoto, I realized it was the perfect opportunity to return to my roots and apply my human-scale commercialization experience to the livestock industry. I am confident that I am uniquely positioned to commercialize this technology in Japan.

Mr. Ito: You combine both the technical background and the business experience of scaling genetic testing services in Japan from scratch. Hearing your background makes the success of this business look highly probable.

While the underlying biotech is impressive, this business seems to require building brand recognition for your \"Certificate\" among buyers and distributors. What is your marketing and aggregation strategy?

Mr. Matsuoka: That is exactly correct. Simply pitching the technology to farmers does not drive adoption, as it represents a cost. The key is creating a pull incentive from the distribution side, proving that certified Wagyu sells at a premium.

In discussions with Wagyu exporters, we found a strong need: while famous brands sell on name recognition, lesser-known A5 Wagyu is often underpriced despite outstanding taste. Exporters wanted an objective index to justify higher purchase prices and propose them to wealthy overseas clients.

Therefore, we are partnering with key distributors like Itoham Yonekyu Holdings to establish a valuation model showing that Zaimo-certified Wagyu sells at a premium. This encourages farmers to adopt the test to boost sales. Furthermore, we are partnering with feed manufacturers to offer a combined package optimizing feed based on Zaimo data, allowing us to capture market share rapidly as an industry platform.

Mr. Ito: Like wine classification, your scientific certification acts as an infrastructure that guarantees value. I see massive scale and social impact here. We look forward to your future growth and funding.

Mr. Matsuoka: Thank you. We will work hard to share Japan's Wagyu globally through science.