As beef-on-dairy has grown from a new concept to a standard production model, dairy producers, calf ranches and feedlots have found themselves working together more frequently than ever before. And while these partnerships have strengthened communication across the supply chain, disconnects remain.
At the 2025 MILK Business Conference, dairy producers and feedlot managers came together to address some of these pain points. Their conversation highlighted where progress has been made along with the areas where better alignment is still needed.
Colostrum Management
Dairy producers often move beef-on-dairy calves off the farm quickly. But feedlot managers say those first few hours on the dairy, long before a calf is loaded onto a truck, have more impact on long-term health and performance than anything that happens later. How that calf gets started determines whether it enters the feeding system with a strong immune foundation or fighting an uphill battle.
“One of the disconnects that I see across the industry is what happens to that day-old calf,” says Eric Behlke, general manager of Blackshirt Feeders in Nebraska.
He stresses that when a calf misses out on high-quality colostrum, the consequences follow it all the way to the finish. For feedlots paying top dollar for these calves, that early-life setback is hard to overcome.
“The No. 1 predictor of a calf’s health is passive transfer,” Behlke says. “Did that animal receive colostrum? When there is failure of passive transfer or they don’t get colostrum, it is detrimental to their health.”
What frustrates buyers is that the solution is not complicated. Giving beef-on-dairy calves the same care as replacement heifers with timely colostrum, consistent protocols and clean environments is the quickest way to close the performance gap, yet feedlot managers say they still see too many calves entering the system without the foundational immunity needed to thrive.
Two sectors, two languages
Another disconnect is simply the language each sector uses. Dairy and feedlot teams might talk about the same calf, but the terms and phrasing can be different enough to make early conversations a little confusing.
Daniel Vander Dussen, a dairy producer in New Mexico, describes his early experiences selling calves.
“When I first started selling beef-on-dairy, I was selling some calves via video, and we were trying to set up a contract,” he says. “[The crew I was working with] were talking to me about one-way slides, two-way slides and base weights. I had no idea what any of that meant. I needed them to explain it to me in a way that I could understand.”
The terminology, pricing structures and expectations that are standard in the feedlot world can often feel foreign to dairies who have never been part of that marketing system. They do not need a perfectly shared vocabulary, but both sides need to understand what the other is talking about to create value together.
“Any time I had to the opportunity to ask ‘why’ or ‘what does that mean,’ I would,” Vander Dussen says. “It was a chance for me to get a better understanding.”
Sire Selection
Feedlots also wanted to clarify the idea that every beef-on-dairy calf needs to be sired by Angus. While Angus genetics remain a reliable choice, Tony Bryant, director of nutrition, research and analytics at Five Rivers Cattle Feeding emphasizes the best sire is the one that fits both the dairy operation and the needs of the eventual buyer.
“Color is one of the least important drivers on our grid,” he says. “A common misconception is that they all have to be black. That’s not true. There are a lot of advantages from other breeds, too.”
Perhaps the biggest tension point comes down to expectation and investment.
Being Adaptable
Today’s feedlots are investing heavily in beef-on-dairy calves, with prices reaching record highs. That level of spending underscores how much is at stake for both feedlots and dairies, making collaboration and flexibility more important than ever.
“A few months ago, these calves were $1,650. That’s a tremendous investment,” says Tony Lopes, a California dairy producer. “If they are going to spend that much, we need to show up at the table with an open mind.”
According to Lopes, this means being willing to reevaluate long-standing traditions such as genetic providers, sexed-versus-conventional strategies, the amount of beef semen allocated or even the type of beef breeds used.
He notes that what feedlots want most is a partner not just a seller. Someone who asks questions, understands finishing-system goals and adjusts where possible to produce a calf that succeeds through the entire supply chain.
“I’d stress to producers to be willing to reevaluate the way things have always been in order to ensure that the partnership with that transaction is successful,” he adds. “Make sure you’re doing everything within your power to be a good partner and to maintain that customer service relationship.”
The Path Ahead
Beef-on-dairy has evolved into a standard production model for dairy producers across the country, creating new opportunities and challenges for dairies and feedlots alike. Success for both sectors depends on strong communication and a willingness to adapt.
From early calf care to clear expectations and thoughtful genetic decisions, every step matters. Producers who embrace flexibility and focus on building partnerships will be best positioned to deliver healthy, high-performing calves and maintain long-term market relevance. Those who resist change risk falling behind in an increasingly competitive industry.
