Beef on Dairy

The Packer’s Dream: How Beef-on-Dairy is Solving the $2 Billion Consistency Problem

Thu, 23 Apr 2026 14:41:08 GMT

When Brad Kooima of KKV Trading spoke to “AgriTalk” in late January, he described beef-on-dairy as the “gorilla in the room.” But it wasn’t just the volume that caught his attention; it was the control.

“For the first time, you got an integrator that has the ability to control that thing from its birthday and schedule it out 341 days later that we’re going to slaughter that thing,” Kooima said. “Once a dream that the packers chased.”

That dream is now a reality, according to data presented at this year’s High Plains Dairy Conference. For decades, the beef industry has struggled with the fragmented nature of the native cow-calf sector — thousands of small herds with different genetics, different calving seasons and massive variability at the rail.

Ending the War on Variability

Lauren Kimble, manager of ProfitSOURCE Supply Chains for Select Sires, Inc., highlighted the greatest strength of the beef-on-dairy movement is its ability to kill variability.

“I care deeply about consistency ... variability is the enemy,” said Sidney Abbot of OT Feedyard & Research Center, a sentiment echoed throughout the conference.

The data proves why. While the total U.S. fed cattle harvest is a mixed bag of quality, program-specific beef-on-dairy is hitting 40% Prime and 59% Choice. Because these calves are born on dairies that operate like clockwork, they offer the packer something the native beef industry rarely can: Year-round market supply and uniform carcasses.

The Factory Floor of Beef

In the Texas High Plains, where over 25% of the nation’s fed cattle are processed, the shift is undeniable. Data from Laphe LaRoe of Smith Cattle Company shows while native cattle inventories are plummeting, the beef-on-dairy line is climbing.

By 2026, the dairy barn has effectively become the factory floor for the beef industry. Because a dairy cow calves every day of the year, the integrator (the dairy producer) can provide a steady, predictable stream of high-quality protein to the packer every single week. There is no calf crop season. There is only a continuous, scheduled flow.

This isn’t just a marginal gain; it is a fundamental shift in the dairy business model that allows for this factory-like precision. Ken McCarty of McCarty Family Dairy in Kansas says the transition from Holstein bull calves to high-value beef-on-dairy crosses has rewritten their balance sheet. McCarty Family Farms was recognized as the 2025 Milk Business Leader in Technology Award winner for transforming their operation into a high-tech, 20,000-cow operation driven by innovation, data and bold decision-making.

“Bull calf sales went from something that you basically ignored in your budget to something that really today accounts for, depending on the month in the market, somewhere around 50% of our overall revenue,” McCarty says.

When half of a dairy’s revenue is tied to the beef side of the barn, the producer is no longer just a milk man — they are a high-stakes beef integrator with every incentive to meet the packer’s demand for perfection.

Systems Capture Value

As Troy Marshall of the American Angus Association notes: “Genetics create potential. Systems capture value.”

The system is the ability to track a calf from its specific beef-sire breeding date through a standardized calf-raising program, into a professional feedyard, and onto a rail where it hits Certified Angus Beef (CAB) specs with surgical precision.

By 2026, the industry isn’t just selling cattle; it’s selling predictability. For the packer, a beef-on-dairy calf isn’t a gamble — it’s a scheduled delivery of a high-marbling, consistent product that meets the consumer’s demand every time. The gorilla in the room isn’t just big; it’s incredibly disciplined.

U.S. Bovine Semen Slipped 4% in 2025, Exports Hit Record $327M

Tue, 17 Mar 2026 19:06:22 GMT

Even with a major export market disappearing early in the year, the U.S. bovine genetics industry proved its resilience in 2025.

New data from the National Association of Animal Breeders (NAAB) , which represents roughly 95% of the U.S. artificial insemination industry, shows total semen sales slipped about 4% in 2025 to just under 66 million units - a decline of 2.9 million compared with 2024, effectively giving back last year’s modest gain. However, the industry offset much of that loss through stronger beef demand, expanded export markets and continued shifts in dairy breeding strategies.

China Closes Doors, Global Markets Evolve

In February 2025, U.S. bovine semen exports to China came to an abrupt standstill after Chinese authorities halted the issuance of required veterinary health certificates, cutting off one of the industry’s key export channels. The disruption stemmed from regulatory and trade tensions, not animal health concerns. Without the certificates, U.S. exporters had to redirect product to other markets.

“While dairy unit exports were down due to the closure of the China market, exports to other countries increased, which significantly reduced the impact of the closure,” says Jay Weiker, president of NAAB.

Even with China offline, robust interest from Europe, Brazil, North Africa and South Asia helped steady the export picture.

“The industry not only stabilized but continued to advance by strengthening long-standing markets and opening new ones,” says NAAB international program director Sophie Eaglen.

The closure of China also reshaped the list of top semen buyers by value. In 2025, the United Kingdom led the rankings, followed by Italy and Mexico. Brazil led in total units imported, followed by Mexico and Russia. Overall, 46 markets imported over $1 million in U.S. semen, accounting for 94% of export units and 95% of export value.

A Down Year for Dairy

The U.S. dairy semen market experienced a substantial decline in 2025, reflecting ongoing shifts in breeding strategies and global market pressures. Total dairy unit sales, including domestic, export and custom-collected units, fell 6% compared to 2024, a loss of roughly 3 million units, bringing the total to 45.8 million.

Despite the overall decline, domestic use showed a slight rebound, increasing 2% to 16.5 million units, or nearly 367,000 additional units. Sexed semen continued to dominate U.S. herds, rising 6% to 10.6 million units and now accounting for 64% of all dairy semen used domestically. Conventional dairy semen declined by 280,000 units, highlighting the continued trend toward precision breeding and genomic selection.

Exports for dairy semen totaled 28.3 million units, down about 2.5 million from 2024. The early-year closure of the China market contributed to the drop, but exports to other countries, particularly across Europe, Brazil, North Africa and South Asia, helped offset much of the lost volume. NAAB says strong international demand for replacement heifers continues to create opportunities for U.S. dairy producers.

Beef Semen Sees a Bump

The beef segment saw modest growth in 2025, reversing a multi-year decline. Total beef semen sales increased by 1%, or roughly 122,000 units, to reach 20.2 million units. Domestic use accounted for most of that growth, with beef units sold into beef herds rising 7% for the second consecutive year. In total, 9.8 million beef units were used domestically, with 8.1 million going into dairy herds and 1.7 million used in traditional beef herds.

Heterospermic beef semen, which combines genetics from multiple sires in a single straw, remains a significant portion of the market, though it declined from its 2024 peak of 2.8 million units to just over 2 million in 2025. Domestically, heterospermic units represented 2 million of the total, with 400,000 units exported. Angus remains the dominant beef breed, followed by crossbreeds and heterospermic products.

Export demand for beef genetics also continues to expand. Total beef semen exports grew 13% to 5.5 million units, underscoring the global appetite for U.S. genetics even as total semen unit exports declined overall.

Beef-on-Dairy Genetics Hold Steady

Beef-on-dairy genetics have become an increasingly important strategy for U.S. dairy producers, and 2025 was no exception. Domestic use remained steady at 8.1 million units, while exports of beef-on-dairy semen grew 13%, adding approximately 279,000 units.

This segment is fueled by genomic selection strategies that allow dairy producers to produce replacement heifers from their best animals while using beef sires on the remainder of the herd to create high-value F1 calves for feedlots. Adoption is also growing internationally, with rising demand for F1 calves and crossbred genetics, reinforcing the role of U.S. dairy producers in meeting both domestic and global needs.

Adaptive Trends and Future Opportunities

Despite the year’s unit declines, the industry is adjusting and finding its footing as global demand shifts and new breeding tools and market opportunities come along.

“Trends in semen usage reflect producers’ efforts to improve genetic outcomes and economic returns in an evolving marketplace,” Weiker says. “NAAB members should be complimented for their commitment to developing new markets and increasing market share in strategically important markets. There are many positives that can be gleaned from the 2025 results.”

With export value at record levels and beef-on-dairy strategies growing, the industry appears positioned for continued adaptation and progress in years ahead.

Beef-on-Dairy is Becoming a Bigger Engine for the Beef Supply Chain

Thu, 26 Feb 2026 20:58:55 GMT

Beef-on-dairy has become a significant part of the U.S. beef supply over the past decade, gaining momentum much like a freight train that keeps picking up speed. In fact, roughly 20% of today’s beef now traces back to a dairy cow, reflecting how integrated dairy production has become with the broader beef value chain.

And according to Matthew Cleveland of ABS Global and Nick Hardcastle of Cargill North America, that momentum shows no signs of slowing down.

“I think we’re all aware of the scope and magnitude of what beef-on-dairy has become and the significant role it plays within our beef supply chain today,” Cleveland noted during a panel at the 2026 National Cattlemen’s Beef Association conference.

He says the sector’s growth has also changed how the dairy and beef industries view one another. Rather than operating as separate segments, the lines between them have blurred.

“The dairy business is a big part of the beef business,” Cleveland says. “I don’t even like to separate them now. We’re all in the beef business, and we value partnership with our dairy producers.”

As beef-on-dairy has expanded, more attention has turned to decisions made on the dairy, where breeding choices directly influence how those calves perform all the way through the beef system.

Breeding With the Beef End in Mind

In the early days of beef-on-dairy, breeding decisions were driven largely by convenience rather than genetic intent. Beef semen was often selected based on price and availability rather than how those genetics would fit the needs of the beef sector.

“Before people really started thinking about beef sire genetics on dairy cows, there wasn’t much consideration for what those genetics actually were,” Cleveland says. “Most decisions came down to what semen was already in the tank or what was free. The main goal was simply getting the cow pregnant.”

That approach began to change as the industry started to see beef-on-dairy as a long-term genetic opportunity rather than just a reproductive tool.

“We began looking at beef‑on‑dairy more seriously from a genetic improvement standpoint around 2012,” Cleveland says. “We started to see the signals that beef-on-dairy was growing.”

Not long after, dedicated breeding programs were being developed across genetic companies to address the needs of both dairy producers and the beef supply chain. Today, Cleveland says those programs continue to evolve, with commercial performance data feeding back into genetic evaluations to drive ongoing improvement.

From ‘Black Holsteins’ to Beef-Calf Performance

During the early days of beef-on-dairy, crossbred calves exposed real challenges for the beef industry. Cleveland notes that many of these animals were simply viewed as “black Holsteins,” which cooled enthusiasm among packers.

“If you think back to 2013-14, you were just trying to create a black calf,” he notes. “We weren’t seeing the performance that you would expect from a beef calf. And for a few years, I think that soured the supply chain on the idea of beef-on-dairy.”

As sire selection became more intentional, however, performance improved. By 2017-18, Cleveland says calves coming from dairy cows began to more closely resemble traditional beef calves.

“We had to create animals that were going to perform,” Cleveland says. “And for us, that was really about focusing our genetic improvement to ensure we selected for the right things each segment wanted.”

Some of those genetic improvements included:

Fertility and calving traits for dairies
Feed efficiency and growth traits for feedyards
Carcass merit and consistency traits for the packers

According to Cleveland, these efforts have helped beef-on-dairy calves perform more like native beef cattle. And by focusing on traits that matter for dairies, feedyards and packers, the beef-on-dairy animals that we know today are much more consistent and valuable.

Performance Trends from the Packer’s Rail

With beef-on-dairy calves now performing more like traditional beef cattle, packers see that consistency as essential for maintaining quality and keeping cattle moving through the system.

“Beef-on-dairy is a very important thing for the beef industry right now, especially when we’re talking about capacity,” Hardcastle says. “We have to make sure we have a beef population that can meet our consumers’ demand.”

Importantly, he emphasizes that these animals are not bringing down overall standards in the beef industry.

“They’re good for the consumer,” Hardcastle says. “Tenderness data shows they perform very well, making a positive impact. These aren’t just animals being blended in that lower beef quality; they actually help improve it.”

He references Cleveland’s remarks, highlighting how focused breeding and feeding approaches have contributed to stronger quality grades.

“Over the past five years, we’ve seen quality grade continuously improve,” he says. “Back in 2021, these animals graded 80% Choice or better. Today they’re leveling at about 92% Choice.”

Hardcastle says beef-on-dairy cattle are also making a notable contribution to Prime.

“From a marbling perspective, almost two-thirds of these cattle could qualify for upper two-thirds Choice,” he says. “The ones that don’t usually fall short because of factors like hot carcass weight, ribeye size and fat thickness.”

From a carcass quality perspective, Hardcastle says beef-on-dairy is delivering the kind of results the industry needs. They’re grading well, adding stability to supply and proving they can hold their own in a system that demands both consistency and performance.

Processing Challenges Inside the Plant

Even as grades and marbling improve, processors are still working through carcass traits that affect returns, particularly excess kidney, pelvic and heart (KPH) fat. Hardcastle explains that beef-on-dairy cattle often mirror their Holstein roots, tending to carry more KPH fat than native beef animals.

“From a packing perspective, you pay for a carcass with the kidney, pelvic and heart fat in it, but that fat can’t be sold as beef,” Hardcastle says. “It ends up in the tallow market at 50 to 60 cents a pound, compared with about $3.60 on a beef grid, creating an immediate value loss.”

On today’s heavier carcasses, even modest differences in KPH can add up.

“If I have a 950-lb. carcass, which is pretty common today, that can mean about 12 extra pounds of internal fat instead of saleable meat,” he says. “That difference can cost $30 to $40 per head.”

These carcass differences are also highlighting the limits of traditional yield grade assumptions.

“Yield grade is meant to estimate how much salable red meat a carcass will produce,” Hardcastle explains.

Based on ribeye size, backfat and carcass weight, beef-on-dairy cattle should cut better than native beef, but yield grades often don’t reflect their true performance.

“Yield grade and beef-on-dairy really aren’t closely related,” he says. “Research shows that yield grading doesn’t reliably predict cutability or value for Holsteins or beef-on-dairy cattle.”

This mismatch shows that standard measures like yield grade, internal fat and weight don’t always capture the real value of beef-on-dairy animals, making it challenging for processors to price and sort them at the rail. To address this, Cargill is testing new technology called SizeR to capture 3D carcass measurements at chain speed.

“So, we can evaluate the full composition of these animals, not just traditional ribeye and fat thickness,” Hardcastle says. “This will help feeders and geneticists be able to better target the right traits to improve cutability and consistency.”

Growing and Permanent Force

Each year, millions of beef-on-dairy calves enter the market, providing a reliable source of high-quality cattle that deliver value from the dairy all the way to the packer.

“We have somewhere in the neighborhood of 3 [million] to 3.5 million beef-on-dairy calves in the market today, which obviously represents a significant proportion of that beef supply chain,” Cleveland adds.

That presence is prompting both dairy and beef participants to think differently about their place in the larger system.

“At every stage, from the dairy to the feedyard to the packer, these animals are performing and adding value,” Hardcastle says. “We understand the significance of beef-on-dairy, and we know that beef-on-dairy is not going away.”

As the industry continues to refine how these cattle are evaluated and managed, beef-on-dairy is positioned to remain a dependable contributor to both supply and consumer demand. With ongoing genetic gains and strong beef demand fueling the engine, the sector is gaining momentum and becoming a permanent fixture in the beef supply chain.

Why Fiber Quality Matters More for Beef-on-Dairy

Thu, 05 Feb 2026 22:33:20 GMT

On paper, a beef-on-dairy steer may look about the same as conventional beef at finishing. But at the bunk and in the rumen, it’s a very different animal.

While physically these animals are identical, beef-on-dairy cattle are running on a more expensive engine, according to University of Nebraska beef systems Extension educator Alfredo Di Costanzo. During his recent webinar on beef-on-dairy fiber requirements, he used grazing data to highlight the different fiber needs for this terminal cross.

Different Genetics, Different Requirements

During a recent study, when Di Costanzo compared beef breeds to beef-on-dairy animals on pasture, the results were consistent. The traditional beef cattle converted forage to gain more efficiently, while the beef-on-dairy group gained more slowly and finished at lighter weights. To Di Costanzo, it showed the genetic influence of the dairy breed increases the energy required for growth.

“Because I put dairy [genetics] on this beef animal, the maintenance requirements have gone up,” he explains. “If we’re going to increase fiber inclusion, we’re going to have to do it with a better-quality forage.”

Why Low-Quality Fiber Doesn’t Cut It

The challenge is not just that beef-on-dairy cattle use more energy. It is also how quickly feed moves through their systems.

Dairy and dairy-cross animals tend to have a faster rate of passage through the rumen, Di Costanzo notes. That may not sound like a major difference, but it changes what kind of forage they can actually use. A stemmy, lower-quality roughage a beef steer might handle fairly well can end up acting like little more than gut fill in a Holstein-influenced calf.

While this study focused on cattle on pasture, the same idea applies at the feed bunk.

Di Costanzo explains lower-quality fiber does not stay in the rumen long enough to be properly digested for these beef-on-dairy crosses. In nutrition terms, that can create negative effects where poor-quality roughage drags down the performance of the entire ration by taking up space without delivering much energy in return.

“Lower quality forage, for me, means less time for ruminal digestion and more time, too, for negative associative effects,” Di Costanzo warns.

Those negative effects can show up as lower total digestibility, poorer feed efficiency and more variability in intake, especially when cattle are already being pushed on a high‑concentrate program. For beef‑on‑dairy cattle, that means cheap, low‑quality roughage is rarely worth the investment. Di Costanzo notes every pound of dry matter must work harder, making junk roughage a poor economic fit.

Is Cheap Roughage Costing You Gain?

Biologically, cattle can get by on very little fiber if energy and protein are there, Di Costanzo notes.

“At zero or near-zero inclusion of fiber in the diet, cattle are continuing to thrive,” he adds. “There’s really no NDF requirement for maintenance or growth.”

But in a real‑world feeding program, beef‑on‑dairy cattle need rations that turn a profit, not just keep them alive. That’s why Di Costanzo warns against using cheap, low‑quality hay or residues just to say the diet has enough roughage.

Instead, he suggests aiming for about 10% to 15% NDF from good‑quality forage. For many feed yards, that might mean favoring well‑processed silages or higher‑quality forages over the cheapest roughage available. The goal isn’t to stuff the rumen. It’s to support muscle gain without sacrificing efficiency.

Quality Over Quantity

Fiber decisions are not just about keeping the rumen healthy. They also affect how cattle perform on feed and the value you get when it’s time to sell.

Adding more fiber to beef-on-dairy diets can help support greater feed intake, but there’s a limit. Average daily gain starts to drop quickly once physically effective NDF goes above about 15.5%, and feed conversion efficiency also declines. The challenge for producers and nutritionists is finding the sweet spot where cattle eat enough without slowing growth.

Overall, the type of NDF is less important than making sure cattle get the right amount of good-quality fiber. Hitting that balance helps support intake, maintain feed efficiency and keep beef-on-dairy steers performing at their best. For beef on dairy cattle, a well-planned grower ration with the right balance of concentrate and quality fiber can set cattle up for a better finish.

Will Beef-on-Dairy Help Rebuild America’s Record-Low Cattle Numbers?

Tue, 03 Feb 2026 21:10:38 GMT

America’s cow herd has shrunk to levels not seen in 75 years, falling to 86.2 million head. Weather challenges, high input costs and record cattle prices have made heifer retention a difficult decision for many beef producers, keeping numbers tight. In response, more feedlots have turned their attention toward the dairy sector, where beef-on-dairy calves are helping to fill the gap.

Can Beef-on-Dairy Help Fill Feedlot Pens?

As beef cow numbers continue to slide, beef‑on‑dairy calves have stepped up, offering feedlots a steady source of quality cattle. That growing demand is giving dairy farmers a chance to cash in on a market with lucrative returns.

A 2024 industry survey found about 72% of dairy producers are actively using beef-on-dairy breeding programs, and production numbers mirror this trend. CattleFax estimates beef-on-dairy calf production jumped from just 50,000 head in 2014 to 3.22 million in 2024, with projections likely to reach 5 to 6 million head by 2026.

These trends are reflected in the latest USDA numbers, which show just how tight beef supplies are and how the dairy herd is playing a growing role in meeting demand:

The number of milk cows in the U.S. increased 2% to 9.57 million.

Total Cattle and Calves Inventory: 86.2 million head (down 0.35%)
Beef Cow Herd: 27.6 million head (down 1%)
2025 Calf Crop: 32.9 million head (smallest since 1941)
Beef Replacement Heifers: 4.71 million head (up 1%)

(USDA Data)

Brad Kooima of Kooima Kooima Varilek believes the tightest supply of this entire cattle cycle could occur in the next 60 to 90 days. During a recent episode of “AgriTalk”, Kooima highlighted how beef-on-dairy has become a major component helping to keep the beef supply chain strong.

“The gorilla in the room, to me, is beef-on-dairy,” he says. “From a couple of standpoints, the dairy cow herd’s the biggest since 1993. It’s grown and grown, and why wouldn’t you if you can get $1,200 to $1,500 for a day-old calf?”

What used to be a steady stream of native beef calves is now increasingly made up of dairy-beef crosses. Feedlot managers say these cattle have helped provide something the beef industry has long struggled with — a reliable, steady supply.

Dr. Eric Belke, veterinarian and feedlot partner at Blackshirt Feeders in Nebraska, says that need for consistency is exactly why Blackshirt Feeders was designed around beef-on-dairy cattle.

“Historically, in the feedlot world, there has been a lot of seasonality. With the beef-on-dairy population, we have a very consistent flow of cattle throughout the year,” he explained during the 2025 MILK Business Conference. “We needed a very large and consistent supply chain.”

Belke’s experience highlights how some feedlots are restructuring their operations to lean heavily on beef-on-dairy cattle, designing facilities and supply chains around the predictability these animals provide.

“Our feedlot was really built for feeding beef-on-dairy animals,” Belke says. “Right now, we’re at a capacity of 100,000 head, and we’re under construction. Next year, we’ll be at 150,000 head. By the end of 2027, we’ll be at 200,000 head. Currently, we have about 87,000 head on feed, and over 90% of those are beef-on-dairy animals.”

What Impact is it Having on Packers?

That predictable pipeline isn’t just benefiting feedlots. Packers are seeing the results, too.

Each year, several hundred thousand beef-on-dairy animals are processed alongside native beef cattle. And the quality within these animals is strong, with many grading very high Choice and even Prime. That quality has helped secure their place in the market.

Nick Hardcastle, Cargill senior director of meat grading and technical specialist, explains beef-on-dairy calves are an upgrade to the traditional Holstein steer.

“Beef-on-dairy is more desirable because it helped overcome several Holstein difficulties,” he says. “Improvements include red meat yield — more meat to a consumer — as well as improved acceptance in branded programs.”

That progress comes from being more intentional with breeding and management. Since replacement females aren’t the goal for the dairy farmers producing these calves, they and their genetic partners can focus on the traits that matter most to the beef supply chain, like calving ease, feed efficiency, days to finish, carcass weight, marbling and overall yield.

Data is what makes that possible. By linking individual AI sires to feedyard performance and carcass outcomes through electronic identification and data sharing, some supply chains are reviewing sire performance every six months and making rapid adjustments. The result has been a measurable improvement in grade, efficiency and days to finish — driven by genetics and management working together.

The Other Side of a Hot Market

While the beef-on-dairy boom has been a big win for dairy farmers, not everyone is celebrating its rise in popularity. Kooima worries about the long-term effects of vertical integration and the growing control some companies now have over the supply chain.

“For the first time, you’ve got an integrator that can control an animal from its birthday and schedule it out 341 days later to slaughter,” he explains. “It’s a dream the packers chase. I watched what happened in hogs and poultry. This scares me to death. The combination of all of that is we’re losing price discovery. They’re going to try to slow it down as much as they can until they control the supply.”

That tension, between a system solving today’s supply problem and one that could reshape how cattle are marketed, is shaping much of the beef‑on‑dairy conversation.

With the U.S. native beef herd unlikely to rebound soon, beef-on-dairy is becoming an important part of keeping the supply chain steady. While the long-term market effects are still unfolding, the trend highlights how the dairy sector is helping meet the country’s ongoing demand for beef.

Tightest Cattle Supply Predicted in The Next 60 to 90 Days

Fri, 23 Jan 2026 17:56:31 GMT

While fundamentals continue to drive the cattle market, increasing prevalence of external factors can play havoc day-to-day.

Based on placements the past six months, Brad Kooima of Kooima Kooima Varilek believes the tightest supply of this entire cattle cycle will occur in the next 60 to 90 days. It wouldn’t be the first-time the market makes a high in February or March.

“Now beyond that, I don’t see there’s a tremendous chance to have an oversupply of cattle going into the summer,” he adds. “However, you’ve got things like the Mexican border that are coming into play. So, I’m trying to react to what I see, but the fundamentals aren’t going to change.”

Here are seven other takeaways from Kooima’s recent conversation with Chip Flory on AgriTalk:

1. Fundamentals Still Drive The Cattle Market.

“I wish we could just talk about cattle fundamentals,” he says. “I’m still an old-school fundamentalist who believes a lot in trying to figure out where we’re at with supply and how we’re getting along with the boxes and beef demand.”

Rumors and misguided comments, such as the New World screwworm (NWS) scare a week ago and geopolitical factors this past Tuesday, can cause the markets to react.

“Now, is it only supply? Of course not,” Kooima says, regarding what drives the markets. “But if I had to start there, barring more of this outside, new stuff we’ve been inundated with, I think the market still generally driving the deal. We don’t have enough cattle, and that’s why they’re cutting kill. That’s why they’re closing plants. There’s not enough to go around.”

2. Heifer Retention Exists But Isn’t a Major Market Factor.

Kooima says heifer retention has started but is insufficient to significantly change the supply trajectory.

“It’s not like 2015 when we flipped a switch and the whole world decided to save them at one time, but it’s there,” he says.

He’s predicting a 1% to 2% increase, saying the retention is regional — referring to the Dakotas, Montana and Colorado.

“What’s driving it is economics,” Kooima says. Some ranchers can’t afford to not sell their heifer calves, while other factors include the age of the rancher, no desire to deal with first-calf heifers and drought.

When asked if there is enough heifer retention to move the needle to bring some relief on the supply side, Kooima responds: “The short answer would be no. We’re never going to have a cow herd like we had 10 years ago. We’re going to have to figure out how to do with less.”

He says the strategy to increase supply is feeding to heavier weights and the growth in beef-on-dairy.

“The gorilla in the room, to me, is beef-on-dairy,” he says. “From a couple of standpoints, just from a raw supply standpoint, the dairy cow herd’s the biggest since 1993. It’s grown and grown, and why wouldn’t you if you can get $1,200 to $1,500 for a day-old calf?”

3. Mexico Has Built Feeding and Processing Infrastructure in Response to Border Closure.

Kooima says with the U.S.-Mexico border closed due to NWS, Mexico has figured out how to finish and process cattle.

“I think there’s a lot of people there who don’t want anything to happen,” he says, regarding reopening the border. “They’re benefiting from this great big bull market and now they’re selling the beef to us. So, it may never exactly be the way it was again. They waited too long on this matter, in my opinion. It’s not a market factor.”

4. Beef-on-Dairy and Vertical Integration Are Rising Concerns.

Kooima shares his concern about the long-term implications of vertical integration and the consequences of the growing beef-on-dairy supply.

“For the first time, you got an integrator that has the ability to control that thing from its birthday and schedule it out 341 days later to slaughter,” he explains. “A dream that the packers chase. I watched them wreck the hog market. I see what happened in poultry. This scares me to death. The combination of all of that is we’re losing price discovery. They’re going to try to slow it down as much as they can until they can control the supply.”

5. Packers Are Adapting to the Market.

Kooima says the closing of Tyson’s Lexington plant and shift reduction at its Amarillo plant are examples of the broad industry trend to reduce harvest rates and shutter facilities when supplies tighten. He explains the closing will result in even less negotiated trade. The Lexington plant primarily did formula (non-negotiated) pricing, and he predicts those formula customers will now go to Tyson’s Dakota City plant.

“Dakota City, a plant that’s closest to me, 64 miles away, is likely going to become a formula plant. It’s going to further deteriorate price discovery up in this neck of the woods,” he stresses.

He adds packers are also using tight supplies as an opportunity to perform necessary cooler clean-out cycles and reduce the number of harvest days per week.

“They’re systematically reducing kill to try to gain some leverage back,” Kooima says.

When it comes to regional packers, he hopes they can survive: “I think they’re critical to price discovery.”

6. Demand for Beef Remains Strong.

Kooima is bullish about beef demand, especially amid supply tightness.

“When people say demand is pretty good, I go ‘No, it is phenomenal,’” he says. “The demand for grind is crazy. We have to make sure we can continue to fuel that rocket.”

7. Risk Management is Essential Amid Market Uncertainty.

On protecting against risk, Kooima advises: “My mantra is and has been for a year and a half to buy some puts. You’re going to have to buy puts to keep you in business. Let’s not let 2015 happen to us again.”

He goes on to add: “Do I think that there’s a high-risk point here in the short term? No, obviously, I just said I think we’ve got the tightest numbers ever, but there’s always something that can go wrong, so be careful.”

Listen to Kooima’s and Flory’s AgriTalk conversation here:

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The New Age of Beef-on-Dairy is Here

Mon, 12 Jan 2026 13:00:00 GMT

Not long ago, beef-on-dairy was viewed as a side experiment to add value to low-demand dairy bull calves. Today, it’s become a practical strategy for both the dairy and feedlot sectors, boosting dairy margins while giving feedlots a steady, predictable supply of cattle.

As the segment has grown, the conversation has moved from whether it works to how it can work better. That evolution was front and center during the 2025 MILK Business Conference , where dairy producers and feedlot managers came together to compare notes, share lessons learned and discuss where beef-on-dairy is headed next.

(Farm Journal)

From Skepticism To Standard Practice

For many dairy producers, the first step into beef-on-dairy was taken cautiously. Daniel Vander Dussen, a New Mexico dairy farmer, remembers pushing back when beef-on-dairy was first introduced on his farm.

“We started giving it a try in 2017, so we weren’t the first ones to do it. I actually pushed back against it at first,” he says.

At the time, the idea of using beef semen on Holstein cows felt counterintuitive, especially after years of genetic progress focused mostly on milk production. The turning point came when calf buyers began to weigh in on value.

“Our custom calf raiser came to us and said, ‘Look, no matter what, your beef-on-dairy calves are going to bring you more than that Holstein steer ever will.’ So as soon as we figured that out, we went to beef-on-dairy. And looking back, I wish I would have started doing it even sooner,” Vander Dussen says.

That same progression has played out on a larger scale for Tony Lopes and his family’s fourth-generation California dairy. Over the past seven years, Lopes has helped turn beef-on-dairy from a trial concept into a central part of the operation. Today, the family milks 5,000 cows across four locations, produces about 3,800 beef-on-dairy animals annually and sources more than 12,000 additional crossbred calves from outside dairies and calf ranches.

(Angie Denton)

“Beef-on-dairy was becoming the trendy thing to do, and it coincided with us going through an expansion,” Lopes says.

During the farm’s expansion, replacement needs were secured using sexed semen. Once the dairy had hit their target, they stopped using conventional semen altogether and leaned fully into beef genetics. Today, the program has evolved even further, with calves raised from day-olds, to 400-lb. weights and up to 700 lb. to 750 lb. before marketing.

“In seven years, we’ve gone from knowing nothing about the feedlot side of beef-on-dairy to making it an incredibly big piece of our operation,” Lopes says.

What To Consider

For dairy producers like Lopes and Vander Dussen, as beef-on-dairy has cemented itself in the market, success has shifted from simply creating a black calf to producing one that fits the needs of the entire supply chain.

Feedlots and buyers are looking for cattle that finish the way they’re expected to, and that begins on the dairy. Breeding decisions, early calf health and how calves are managed in the first weeks all influence how predictable those animals will be later. As the market continues to mature, producers who plan ahead and stay connected to their buyers will be better set up for the long haul.

Begin With The End In Mind

Value doesn’t start at the feedlot. It starts on the dairy. Lopes says long-term success comes from thinking about how calves will be evaluated down the line. Animals that meet buyer and feedlot expectations are easier to market and more likely to earn premiums.

“If there isn’t value after the calf leaves your operation, it’s going to be difficult to capture more,” Lopes says. “Producers need to understand what buyers value and plan for that from the start.”

Vander Dussen learned that lesson over time.

“At first, as long as you had a black calf, that felt like enough,” he says. “But we quickly learned that feedlots care about more than just color. I wish we would have pushed harder for higher genetics right away.”

(Angie Denton)

Lopes bases genetics and buying decisions on conversations and data that align with his cattle marketing goals, not just individual traits.

“The goal is predictability,” he says. “You translate performance into dollars and make decisions from there.”

That same thinking carries into the feedyard.

“Everybody has to win within the chain,” says Dr. Eric Belke, veterinarian and feedlot partner at Blackshirt Feeders in Nebraska. “When data and feedback are interchanged, it leads to more consistent cattle and more value for everyone involved.”

Feedlots Crave Consistency

Collaboration matters with feedlots now leaning heavily on beef-on-dairy programs like those run by Lopes and Vander Dussen. These operations provide a steady supply of calves that grow and perform predictably, giving feedlots the scale and reliability they need.

Belke says that need for consistency is exactly why Blackshirt Feeders was designed around beef-on-dairy cattle.

“Our feedlot was really built for feeding beef-on-dairy animals,” Belke says. “Right now, we’re at a capacity of 100,000 head, and we’re under construction. Next year, we’ll be at 150,000 head. By the end of 2027, we’ll be at 200,000 head. Currently we have about 87,000 head on feed, and over 90% of those are beef-on-dairy animals.”

As beef-on-dairy enters a new era, feedlots like Blackshirt Feeders are looking more toward dairies to keep their pens full. Belke says the year-round flow of cattle sets beef-on-dairy apart from traditional procurement models that are heavily influenced by seasonality.

(Angie Denton)

“The reason this closed loop system really works is because we can grow cattle at scale. We needed a very large and consistent supply chain,” he explains. “Historically, in the feedlot world, there has been a lot of seasonality. With the beef-on-dairy population, we have a very consistent flow of cattle throughout the year.”

Consistency also shows up in performance, driven by genetic design and selection.

“Consistency is key, not just in the flow of cattle, but also in the consistent and predictive outcome of the cattle,” Belke adds. “What we’ve done genetically is work with dairy farmers to design sires that ultimately create extremely similar offspring.”

That focus on genetics and uniformity has helped feedlots manage risk and improve efficiency. Tony Bryant, director of nutrition, research and analytics at Five Rivers Cattle Feeding, says these animals are helping feedlots fill supply needs today and will continue to do so efficiently in the future.

“The cattle supply has been challenging for us trying to keep these yards full, and part of that is just the nature of the cattle cycle. But the other part of it is drought and the closure of the border. So, the beef-on-dairy cross animals really help us and the whole industry, especially from a cattle supply standpoint,” Bryant adds.

Bryant says improvements in genetics and faster access to data are helping feedlots get cattle that perform predictably, making it easier to manage costs and hit marketing targets.

“Beef-on-dairy has come a long way in a short time, with data coming back faster and the cattle getting better because of it,” he adds.

With the native beef herd continuing to shrink, both Belke and Bryant say the reliable supply and more predictable results of beef-on-dairy cattle have become critical tools for feedyards looking to secure cattle and manage risk year-round.

Predictability Built on Relationships and Data

As beef-on-dairy moves into its next phase, predictable outcomes are coming from stronger partnerships. Partnerships now begin at breeding, with dairies and feedlots working together to reduce uncertainty down the line.

“We start with the dairy before the calf is born,” Belke says. “Once the calf arrives, we make an offer based on the current market. Then we get the data that goes along with that calf. In return, the dairy producer gets a credit back to the semen company that is more than the original cost of the semen. So, they receive day-old market value for the calf, plus more than their semen cost covered, and we get the calf.”

That early coordination creates value on both sides. Dairy producers are paid fairly and rewarded for their breeding decisions, while feedlots gain calves with known genetics and management history that can be tracked from birth through finish. Just as important, that data follows the animal through the supply chain.

“All of this data goes back to help us make smarter decisions for the next generation,” Belke adds.

Bryant says that feedback loop is becoming essential as programs scale and risk management becomes more complex. With calves sourced from many dairies, knowing how animals were bred, fed and cared for early in life makes a difference.

(Angie Denton)

“Our objective is to build relationships with the producer, their nutritionist and their vet so we can synchronize the program as best we can,” Bryant says. “It is slower than we would like, but it is worth it.”

As those relationships deepen, data is becoming the backbone of decision making. What started as basic record keeping is evolving into a system that actively guides breeding, calf care and marketing decisions.

“The more we know about these calves before they arrive, the better we can manage growth, feed efficiency and overall performance,” Bryant says.

Rather than just sharing information after the fact, producers and feedlots are beginning to use data in real time, predicting outcomes before calves leave the dairy and adjusting programs accordingly.

“When you track calves from birth through harvest, you can actually see how dairy decisions show up later,” Belke adds. “It helps everyone stay on the same page and make better choices.”

Looking ahead, transparency and collaboration are becoming part of doing business. Operations willing to share information and act on it are creating more consistent outcomes and setting the direction for where beef-on-dairy is headed next.

A Defining Shift

What began as a way to add value to unwanted calves has evolved into an integrated system shaped by genetics, data and collaboration. For dairies, it offers a way to strengthen economics during volatile markets. For feedlots, it provides dependable supply and predictable performance in an increasingly uncertain cattle landscape.

As native beef numbers remain tight and pressure mounts across the supply chain, beef-on-dairy is proving to be more than a trend. It’s the new normal. Producers who plan ahead, build strong relationships and think about the whole system are the ones seeing the benefits.

Filling Pens: Beef-on-Dairy Feeders Are Here to Stay

Wed, 17 Dec 2025 09:45:49 GMT

The biggest factor impacting the quality of beef-on-dairy calves in the feedyard is genetic selection.

For the past five years, Hy Plains Feedyard in Montezuma, Kan., has worked with experts to greatly improve their dairy-influenced calves. What might have begun as a trend has only grown and become more popular in filling pens at feedyards.

“We started about 2012 on dairy-cross cattle, and it has taken us up until about this last year with our quality grades,” Tom Jones of Hy Plains says. “Now, these cattle are running about 90% to 100% Choice and 20% to 30% Prime.”

Working with select dairies in Kansas and Nebraska, Jones says genetic selection was the key to improving both quality grades and red meat yield. While they still are not as feed efficient as beef calves, they are still fed the same rations.

Jones says working with Dan Dorn with ABS Global to help navigate genetics was the turning point.

“We were failing miserably until we brought in Dan to help us do this genetic selection. That kind of opened the door for us, and we got better really fast,” Jones explains.

Working with Hy Plains helped ABS gather progeny data in the feedyard to make better sire selections when crossing beef-on-dairy cows.

“We focus on three profit drivers first, and the No. 1 profit driver in the feedyard is feed conversion,” Dorn says. “No. 2 is carcass traits and No. 3 is carcass weight. At ABS, we have been using Sim-Angus genetics from the beginning.”

Working with Dorn on the front end of genetic selection started making a difference in the carcass quality. Next, they consulted with Dale Woerner, Texas Tech University Cargill endowed professor.

“Things really accelerated when we brought in Dale Woerner, and we started looking and measuring red meat yield, quality grade of the cattle and muscling,” Jones explains.

The collected data from all three — Hy Plains, ABS and Texas Tech — were shared and evaluated.

“It really accelerated us into moving these cattle to all Choice and a large percentage of Prime,” Jones says. “It wouldn’t have been near as successful if I hadn’t stuck with those guys.”

Jones works with two dairies that have consistently had 100% Choice cattle and 20% to 30% Prime.

“Nobody thought we’d ever get to that level,” he says.

Dr. Miles Theurer, DVM and research director for Veterinary Research and Consulting Services, works closely with Jones at the Hy Plains research facility and echoes how genetic selection made the biggest improvement in the beef-on-dairy calves.

“The feedyard relied on ABS to figure out how we improve this more rapidly and by really tracing that animal all the way back to that straw of semen,” Theurer says. “We figured out which of those sires worked well and which of them did not perform up to expectations and then how to incorporate that into the selection criteria.”

While more success has been found with beef-on-dairy calves and they continue filling pens at feedyards, one major concern has come to light — liver abscesses .

“Liver abscesses are very challenging on these beef-on-dairy crosses,” Theurer says. “So it varies by location, but also by origin and practices. These can be anywhere from 30% to 40% all the way up to 80% to 90%. Quite a wide range of variation in the amount of liver abscesses.”

Beef calves in comparison in the Midwest are closer to 25% with liver abscesses. This factor has also been taken into consideration with genetic selection, but hasn’t proven to be the answer.

“We need to have more knowledge where these liver abscesses are actually occurring in the production phases for us to develop more appropriate intervention strategies,” Theurer adds. “Right now everyone wants to kind of point the finger at each other, but I think more of that supply communication up and down the supply chain can help find more of the root cause so we can develop effective mitigation strategies.”

Looking ahead, Dorn says beef-on-dairy calves in the feedyard are here to stay and have helped cattle numbers.

“I think as we look at this from the genetic selection, not only on the quality grade but also at some of the red meat yield potential, can help separate these beef-on-dairy crosses for the future,” Theurer summarizes.

Bridging the Beef-on-Dairy Divide

Thu, 04 Dec 2025 19:29:54 GMT

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.

(Farm Journal)

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.

Siring Success: One California Farm’s Approach to Better Beef-on-Dairy Calves

Mon, 01 Dec 2025 21:09:45 GMT

Over the past seven years, Tony Lopes has steered his family’s fourth-generation California dairy through a remarkable transformation. Today, the family milks 5,000 cows across four locations, produces 3,800 beef-on-dairy crossbred calves and procures an additional 12,000-plus head from outside dairies and calf ranches annually, offering a model for other farms looking to diversify revenue and improve herd economics.

Lopes first got into beef-on-dairy during a period of expansion when the farm had extra pen space and a surplus of heifers.

“Beef-on-dairy was becoming the trendy thing to do, and it coincided with us going through an expansion,” he says. “The first question we had to ask ourselves was if we breed some of these lower-end animals to beef, can we still produce enough heifers. The answer was yes. It was a crawl-before-you-can-walk kind of experiment.”

Once the operation confirmed they could meet replacement needs using sexed semen, they stopped using conventional semen entirely and began focusing on generating as many beef-on-dairy cross calves as possible.

“From the first calves that hit the ground, we backgrounded them and sold them in small gooseneck loads. The math kept working, and as our volume increased, we moved up to 50,000-lb. loads,” Lopes recalls.

Over time, the program evolved even further. They now take calves in as day-olds or at 400 lb. to 450 lb., raising them to 700 lb. to 750 lb. before marketing. This growth gave Lopes the confidence to take full control of the genetics behind the operation.

“The entirety of our beef-on-dairy program today is sired by our own Angus genetics,” Lopes explains. “By 2022, we had enough data to confidently procure our own bulls, and in seven years we’ve gone from knowing nothing about the feedlot side of beef-on-dairy to making it an incredibly big piece of our operation.”

Not Held Back By Tradition
“I’ve always had a passion for genetics and have been interested in what genetic inputs can result in better performance outputs,” Lopes says.

So, when beef-on-dairy began gaining traction, he found himself watching the space closely.

“When we were all starting out, there were a lot of questions,” Lopes recalls. “It seemed like the whole industry, at the same time, was trying to figure out what to breed our cows to. Every stud company, every region, at that point, had a little bit of a different answer.”

After experimenting with several breed compositions, the decision ultimately came down to market demand.

“What drove our decision to go Angus was just buyer demand,” Lopes says. “From an animal husbandry standpoint, we were trying to do everything we could to raise a good quality calf. And as we were building relationships with buyers, they were pretty consistently saying: ‘Hey, we’d really prefer if you just made these all Angus.’”

Lopes emphasizes that genetic decisions on the farm are driven by data and economics, not tradition.

“We’re big believers in making genetic decisions based on dollars and cents as opposed to just a biased opinion or tradition,” he explains. “When we started getting kill data back and looked at the economic drivers of our decisions, we arrived at a conclusion: These are the trait compositions that are going to result in more profitability.”

That analysis led the farm to source a specific set of elite Angus bulls, genetics they couldn’t consistently find in any single company’s lineup. According to Lopes, the breed’s data quality, quantity and large population size made it a logical choice for maximum genetic progress.

“Fortunately, in the Angus seedstock world, elite genetics are well distributed throughout the industry,” Lopes says. “There are a substantial number of bull sales every spring and fall. We were able to find the bulls most elite for the traits we care about, and that just kind of grew from there.”

Still, choosing to buy and use their own bulls came with uncertainty at first.

“It was a little leap at the time, but as we continue to aggregate more and more data, we’re very glad we made that investment and very confident in the performance advantages we’re seeing from our selected sires,” Lopes says.

Data-Driven Decisions
Lopes relies on rigorous data collection and economic modeling to guide breeding decisions.

“Everything we do is built into an economic model from the standpoint of profitability,” Lopes explains. “We look at all the things that go into what we’re asking the animal to do. We’re asking the animal to hang the heaviest carcass possible in the shortest number of days.”

It’s a model that pushes the operation to look beyond individual traits and consider how they work together. The goal isn’t simply to make better cattle but to make cattle that deliver the greatest economic return.

“We’re financially incentivized not just for pounds but for quality. If a carcass grades Prime and we’re chasing the best feed conversion, we have to evaluate those trade-offs,” Lopes says. “A 1% gain in feed conversion versus a 1% increase in Prime percentage delivers very different financial outcomes. Our system converts each of those factors into dollar-and-cents projections so we can prioritize which traits deserve the most weight in our selection process.”

But to understand which traits truly move the needle, the process starts with the carcass data connected to each animal.

“We receive kill data on every individual carcass and tie it back to that animal’s ID — hot carcass weight, backfat, ribeye area, marbling score, yield grade and more,” Lopes says. “We can link all of it to genetics and to management factors like sex, birth date, colostrum score and how many times the calf was treated for pneumonia or other illnesses.”

When those metrics are layered together, the picture becomes much clearer.

“By combining all these data points, we can isolate the genetic components from management influences,” he says. “That helps us make smarter decisions about both genetic selection and day-to-day herd management.”

Eyes on the Future
Looking ahead to 2026 and beyond, Lopes remains bullish on the future of beef-on-dairy.

“I would say there’s a lot of people who think we can’t make any more beef-on-dairy calves than we are now. I don’t share that opinion,” Lopes says. “Producers could likely produce more calves with an optimized approach, using sexed semen and beef genetics. Even in five years, regardless of where beef prices are in the cycle, I think beef-on-dairy will remain a mainstay in the industry. It’s transformational for genetic progress, herd efficiency and revenue.”

On the replacement side, he sees a market that is tighter than ever but still overstocked in certain areas.

“Almost every dairy has fewer heifers than in recent memory, but some still have more than they need,” Lopes says. “Cull rates and herd management mean many farms are comfortable with lower turnover, yet heifers exist — just not where they’re needed. I know I’m in the minority, but I think there’s still an overabundance relative to actual demand.”

For his own operation, Lopes plans measured growth in 2026.

“We’re looking to expand the number of calves we bring in and work with strong operators across the western United States,” Lopes says. “The market is uncertain. Recent futures and processing news make it hard to know whether we’re sourcing at high or low values, but we’re confident there’s still value in beef-on-dairy calves, and we intend to continue growing.”

Cull Cows Defy Seasonality

Tue, 18 Nov 2025 12:55:56 GMT

All the talk of relaxing tariffs on imported beef, knowing that the majority of our beef imports are lean beef trimmings to go into ground beef competing with cull cow beef, suggested it might be time to take a quick look at the cull cow market.

Most will remember that cull cow prices tend to hit their seasonal lows in the rall. The most important reason for the price decline is that more cows are culled from the herd in the fall.

For beef cattle, the largest proportion of cows are culled in the fall following calf weaning. On the dairy side, cow culling increases from summertime lows. The increase in supplies of cows for sale results in lower prices. Another contributor to lower prices is the end of grilling season, with consumers shifting over to more fall and winter consumption patterns.

(USDA-AMS Livestock Marketing Information Center)

So far this fall, the cull cow market has defied normal seasonality. Southern Plains cull cow auction prices hit about $165 per cwt. back in June and have remained there since then. A couple weeks of declines were followed by rebounds back to about $165 per cwt. National average cutter quality cows have declined recently, slipping about $9 per cwt. to $126.

(USDA-AMS Livestock Marketing Information Center)

While the live cow market has not declined much, the same cannot be said for the cow beef market. The boxed cow beef cutout climbed to $340 per cwt. but has declined to $317 over the last two months. Wholesale 90% lean beef has declined from $436 to $404 per cwt. over the same period. Both the boxed beef cutout and wholesale 90% lean have followed the normal season pattern, declining into the fall.

(USDA-AMS, USDA-NASS Livestock Marketing Information Center)

We are likely to see some increased culling from the dairy side of the beef industry in the coming months. USDA’s latest milk production report indicated the nation’s dairy cow herd at 9.85 million head. That is the largest herd since at least 1993.

Milk production in September was 4% larger than the year before. Milk prices are beginning to decline sharply with increased production. There is no doubt that the increased returns from using beef bull instead of dairy breed semen to produce beef-on-dairy calves is boosting profits and aiding in the dairy herd expansion.

Beef cow culling is likely to remain low due to the historically small cow herd and incentives to expand. More dairy cow culling and less beef cow culling will continue to leave cull cow prices high.

Your Next Read: Beef Industry Chaos: Tight Supplies, Strong Consumer Demand and Political Interference

Insights into Calf Mortality at Commercial Calf Ranches

Fri, 24 Oct 2025 12:52:21 GMT

As the dairy industry embraces beef-on-dairy crossbreeding, a new type of animal is reshaping the U.S. calf and feedlot landscape. These calves, born on dairies but destined for the beef supply chain, are prized for their hybrid vigor, growth potential and carcass quality. Their journey often includes an early stay at commercial calf ranches, where young calves are reared in large groups under varying environmental and management conditions.

While these specialized facilities play a key role in raising thousands of calves efficiently, they also present unique animal health challenges. Calves arrive from multiple dairies, often within days of birth, and face stresses from transport, commingling and pathogen exposure. The industry has long suspected that respiratory disease dominates mortality at these sites, but until recently, detailed, systematic data to confirm those patterns were limited.

A new study by Rebecca Bigelow and colleagues from Kansas State University set out to change that. The study compiles data from over 240 necropsies performed across four different commercial calf ranches over a 12-month period documenting cause of death, concurrent conditions and whether these patterns shifted by season, sex, breed or location. These necropsies included both beef-dairy cross (152) and dairy calves (91). Their findings confirm respiratory disease is indeed the leading cause of death, but they also shed light on gastrointestinal (GI) disease and septicemia. Their work provides a valuable benchmark for working to improve early-life calf health.

Of the 243 necropsied calves, 67.5% of them had a primary diagnosis of respiratory disease. Gastrointestinal causes accounted for 11.5%, septicemia for 9.5%, and miscellaneous cases (including trauma, umbilical infection and liver abscesses) for the remaining 11.5%.

Most calves had no additional comorbidities recorded, but among those that did, respiratory plus another condition was the most common combination. Within the respiratory category, bronchopneumonia represented nearly 90% of cases, while bronchopneumonia with interstitial pattern was less frequent. Considering GI lesions, 49% of calves had no lesions, while 21% had upper GI lesions (rumen and abomasum), 13% had lower GI lesions (small and large intestine), and 30% had both.

One of the study’s more surprising findings was what didn’t change. Statistical modeling showed no significant associations between the likelihood of respiratory or GI diagnoses and season, sex, breed or ranch. This result suggests the underlying disease pressures in these systems are persistent year-round rather than being driven by environmental conditions or genetic background. Further, beef-dairy cross calves had no improved disease resistance compared to dairy calves under commercial rearing conditions.

These results can be summarized into the following takeaway points for animal caretakers:

Prioritize respiratory prevention.

With two thirds of deaths linked to respiratory causes, calf ranches must focus on preventative strategies: proper ventilation, gradual group transitions and consistent monitoring for early signs of respiratory illness. Review vaccination programs and align them for protection at times of stress and exposure.

Necropsies pay off.

Routine necropsy programs can help producers spot emerging disease trends before they escalate.

Maintain consistent management year-round.

Prevention and monitoring must remain equally rigorous through all seasons, not just in winter or transport peaks.

Collaborate across the production chain.

Calf health outcomes at ranches depend on colostrum management, navel care and nutrition practices at the dairy of origin, as well as transport and receiving protocols. Strong communication between dairies, calf ranches and veterinarians ensures continuity of care.

Why Beef-on-Dairy Is Shaking Up The Dairy Industry Landscape

Mon, 13 Oct 2025 14:06:07 GMT

The dairy industry is evolving, and producers are finding new ways to diversify their operations. For Ken McCarty of McCarty Family Dairy in Kansas, one big innovation has come through the rapid rise of beef-on-dairy practices — transforming what was once considered low-value into a substantial source of income.

“We remember the days when we were trying to sell Holstein bull calves, two for $5, and you couldn’t get rid of them,” McCarty recalled on the U.S. Farm Report live taping at World Dairy Expo. “And, bull calf sales went from something that you basically ignored in your budget to something that really today accounts for, depending on the month in the market, somewhere around 50% of our overall revenue.”

A Sustainable Practice
According to Dan Basse, president of AgResource Company, beef-on-dairy is not a fleeting trend but a long-term solution in an industry seeking stability.

“I don’t think we can get enough mama beef cows to come forward,” Basse says.

He anticipates robust prices in the future, although not consistently at peak levels, still valuable for dairy operations.

“I’m not saying they’re going to stay at $1,400, but I do believe there’s somewhere north of $700 to $800, which is still a lot of money for the dairy operation,” he says.

The 2025 Farm Journal State of the Dairy Industry report echoes this view, with three-quarters of operators engaging in beef-on-dairy methods such as breeding and raising. There’s evidence in semen sales too, with figures showing a 317,000-unit increase in the U.S. by 2024, as reported by the National Association of Animal Breeders (NAAB).

Added Value
At the 2024 Milk Business Conference, Dale Woerner from Texas Tech highlighted the added value that beef-on-dairy crossbreds bring to the beef supply chain.

“Beef-on-dairy crossbreds have added enough value to the beef supply chain that we should never change what we’re doing,” he asserts, advocating for the continuation of creating crossbred cattle.

Challenges and Concerns
Despite the positive strides in diversification and value addition, the dairy industry faces significant hurdles. Labor remains a critical issue, with a consistent demand for quality and quantity — a luxury dairies can’t afford to ignore given their year-round operations. In fact, immigrant labor contributes to 79% of the U.S. milk supply, underscoring the importance of these workers in sustaining the industry.

“Labor is an ever-present issue within the dairy industry. We’re not afforded the luxury of taking Christmas day off. So, accessing the quantity and quality of labor that we need is a huge concern,” McCarty says.

Market volatility also poses a challenge. McCarty notes the worrying impact of market downturns on rural communities, which are integral to sourcing feed and maintaining vibrant local economies. There’s a growing concern about the long-term effects on communities and the dairy industry’s future prosperity in these uncertain times.

“We’re heavily dependent upon the neighbor next door to source feed from, to keep our communities vibrant,” he says. “When we’re in market downturns like this, we grow very concerned about the long-term impacts that’s going to have on our communities and our ability to have our business prosper in the future.”

The rise of beef-on-dairy practices demonstrates the dairy industry’s adaptability and resilience in the face of challenges. While the path ahead includes obstacles like labor issues and market volatility, innovation in practices such as beef-on-dairy provides a beacon of hope and stability for producers like McCarty, the 2025 Milk Business Leader in Technology winner. Embracing these changes could ensure the vitality of the dairy industry for years to come.

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How Beef and Dairy Genetics Are Smarter and More Profitable

Fri, 10 Oct 2025 17:12:20 GMT

Understanding your customer’s needs, the power of data and the need for continuous innovation is key to the success of beef and dairy producers. Lorna Marshall, Select Sires vice president of beef genetics, emphasizes the critical role of technology, data and strategic breeding in creating value in the industry today.

Marshall was the featured guest in “ The Future of Beef Show ” podcast Episode 13 .

Her perspective highlights the beef industry’s evolution from traditional breeding methods to a more sophisticated, technology-driven approach.

Marshall’s journey in the artificial insemination (AI) industry spans decades. She explains the AI industry has seen significant consolidation during her career — from 15 cooperatives to now three to four major organizations. She says Select Sires remains the only cooperative AI organization in the U.S.

“Whatever I see happen in the dairy world, beef is going to follow it in five to seven years,” she explains.

Key takeaways from the podcast include:

1. Beef-on-Dairy Evolution: The beef on dairy market has transformed dramatically since 2018, creating more valuable cattle by crossing beef bulls with dairy cows.

She says AI companies are focusing on terminal traits for beef-on-dairy, creating bulls specifically designed for producing high-value feeder cattle.

The biggest challenge in the beef-on-dairy space is semen fertility. Marshall acknowledges male-sexed semen would be a good option for beef-on-dairy, but the conception level is not where it needs to be today.

“Fertility is three times more important than any other trait,” Marshall explains about working with dairy producers. “Sexed semen, while we have really improved that product a lot, it still does not have the same level of fertility and conception rate.”

She adds management and cow fertility play a role in the success of sexed semen conception so it is something that can be considered herd by herd, not something implemented across the entire dairy population.

“If I could figure out how to improve bull fertility,” she says. “That would be the No. 1 thing I could do to improve business for Select Sires, or really, any AI organization.”

Fertility is not highly heritable, and there can easily be a 20-percentage-point difference between high and low bulls.

“The thing I love most about beef-on-dairy is, I love data, and I, finally, for the first time in my career, have data to play with,” Marshall says.

2. Genomic Testing: There’s a growing potential for genomic testing in beef cattle, similar to what’s been done in the dairy industry, to improve genetic selection and herd performance.

“If I was a commercial beef producer, I’d be wanting to test my commercial females and figure out who are really the elite ones,” she explains. “And then let’s go build our replacement heifers out of those.”

3. Breed and Genetic Trends: Genetic selection is becoming increasingly precise and data driven. The future of beef genetics lies in comprehensive trait measurement and genomic understanding.

She also emphasizes the beef industry’s evolution from single-trait selection to a more comprehensive strategy.

“There is always a pendulum changing or swinging,” Marshall says. “You’re always going to have people that are more willing to go out on those pendulums farther than others. And that’s what I love about our commercial industry, they always kind of keep the seedstock industry a little bit grounded.”

She explains at Select Sires they strive to provide the customer what they really want.

“We need some of those extremes, honestly, to kind of move the industry forward in different areas,” she says. “Look what we’ve done on traits like marbling. We’ve totally changed the beef demand dynamic, because we’ve created a more palatable product that our consumers really like.”

Comparing the seedstock and commercial beef industries, she says seedstock producers generally select for extreme in traits trying to be breed leading.

“Our commercial customers have almost always selected more for balance,” she summarizes. “But really the secret sauce to getting bulls that are going to sell lots of semen would combine phenotype and genotype, and then their pedigree is always important.”

Marshall predicts the industry will continue to develop new traits that we don’t measure today.

“We may get rid of some of the traits that we have and measure things in a much more profitable way, like age to harvest,” she adds.

She also emphasizes the need for bulls that will produce the next generation of the nation’s cow herd.

“We better have some maternal bulls in our lineup, because beef producers are ready to start rebuilding the cow herd,” Marshall says.

4. Labor Barrier for AI : The labor needed for synchronization is a critical challenge in AI adoption.

Marshall identifies labor as the primary barrier to increasing AI adoption.

“Until we figure out how to synchronize that cow with less labor, it’s going to be really hard to move the needle in a significant way,” she says.

Marshall summarizes the future of the beef industry relies on these four strategies:

- Embracing technological innovation
- Maintaining genetic diversity
- Focusing on commercial producer needs
- Continuous learning and adaptation

Check out the podcast to learn more about how Marshall believes how data, genetics and innovation is shaping the future of beef cattle production.

From Discount to Dominance: The Rise of Beef-on-Dairy

Mon, 15 Sep 2025 16:40:44 GMT

In recent years, the beef-on-dairy segment has undergone significant changes, illustrating a growing confidence among cattle producers and market stakeholders. Just three years ago, beef-on-dairy calves were sold at steep discounts compared to native beef cattle. However, times have changed and now this pricing gap has narrowed remarkably, indicating a positive shift in market perception and valuation.

The Role of Genetics and Breeding
According to Laurence Williams, dairy-beef cross development lead at Purina, beef-on-dairy calf prices averaged about $650 three years ago compared to today’s average price of $1,400 for day-old, beef-on-dairy calves.

In fact, Patrick Linnel, director of market research for CattleFax, highlights the ongoing transformation in a recent beef-on-dairy report from Purina. The report underscores that these changes are largely thanks to advancements in genetics and smarter breeding decisions.

“Genetic suppliers have zeroed in on beef sires that are well suited for dairy cows,” he says. “And producers are making more targeted selections. The result? Stronger, more consistent cattle in which feedlots and packers are increasingly confident in. While there’s still a small discount compared to native beef cattle in some weight classes, it’s far less dramatic and often offset by the reliability and feedlot performance of these crossbred cattle.”

Strategic Innovation and Market Maturity
As the beef-on-dairy segment continues to mature, Linnel says the next phase for this market will necessitate strategic thinking and adaptability from producers.

“While market growth may be slowing, the focus has shifted from volume to value. The future of this market will be shaped by those who can produce high-quality, efficient animals that align with the evolving needs of packers, feedlots and consumers,” he says.

When asked if beef-on-dairy revenue is going to be available to help producers bottom line for the next one to three years, Phil Plourd, president of Ever.Ag Insights nods his head.

“Yes. It’s certainly possible that beef and cattle prices will retreat at some point over the next couple of years,” he says. “History says that the cattle cycle resets eventually.”

Although, Plourd says prices are so high now that even a major retreat would still leave dairy producers with much more beef income than they enjoyed seven or 10 years ago.

“We think financial incentives will continue to lean toward beef-on-dairy activity, even if it’s not quite as lucrative as today,” he says.

Dan Basse, president of AgResource Company, strikes the importance that beef-on-dairy is not a fad but instead a structural change that was made possible by sexed semen and IVF’s.

“The U.S. and beef industries are intricately intertwined by the need for calves with the U.S. beef cow herd at its lowest level since the 1960’s and the cow/calf operation being difficult to scale,” he says. “The U.S. and world need the reproductive capacity of the U.S. dairy herd to bridge the supply gap in the U.S beef cow herd. It will always be cheaper to produce dairy crosses than feed, breed and winter a beef cow. This does not suggest that non-cross beef animals will end their price premiums, but that dairy beef is a new opportunity for dairymen that no longer need all their replacement animals that are produced due to sexed semen. And the packer has come to better understand dairy beef crosses, the length of the carcasses and the accommodations that are needed at plants. I expect the U.S. dairy beef will be profitable and persist for years to come.”

Premier Kansas Dairy Weighs in
For the past five years, the McCarty Family Farm in Colby, Kan., have participated in beef-on-dairy.

McCarty Farms, who recently were named Farm Journal’s 2025 Milk Business Leader in Technology award winner has tested more than 75,000 females since they began genomic testing in 2018 and continue to submit samples weekly.

“All animals are ranked from a genomic perspective, and the top half of the breeding herd creates the next generation, and the bottom half goes to beef, regardless of age or stage,” says Ken McCarty, one of the owners.

McCarty eagerly anticipates new genomic results each month, which provide valuable perspectives on their progress and future direction.

“The value of genomic testing has evolved over time,” he says. Currently, McCarty markets beef cross calves as day olds. The McCarty’s recognize there might be some additional value in retaining ownership; however, their preference is to take away the burden on their employees.

“When we have an opportunity in front of us, our attitude is, we’re going to take it, and that’s really our approach when it comes to the beef-on-dairy side of things,” McCarty says, noting that the market analysis that they have observed, including beef herd trends, heifer retention rates and rancher and cow-calf operator retirement all lead them to expect these prices to maintain strength through 2026 and into the first half of 2027.

“Of course, there is nothing certain in the ag economy, and black swan events seem to be occurring more often, but we are optimistic that values will remain strong for the foreseeable future,” he says.

McCarty says beef-on-dairy has become a substantial part of their operation’s non-milk income stream.

“This certainly has helped bolster profitability while also enhancing the long-term productivity and profitability of our farms through increased genetic selection intensity,” he says. “We don’t see tremendous downside risk in the beef-on-dairy market anytime soon.”

The beef-on-dairy segment has become a substantial part of non-milk income streams for dairy operations like McCarty Family Farms. By enhancing genetic selection intensity, these strategies bolster profitability while minimizing downside risk. As the market continues to evolve, those who embrace strategic innovation and adaptability will likely reap the benefits over the next few years.

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Dairy and Beef-on-Dairy Cattle Sizzling Market Has Found a New Balance

Mon, 18 Aug 2025 14:15:31 GMT

The dairy cattle market, according to Jake Bettencourt, manager of Turlock Livestock Auction Yards (TLAY) Video Sales, has been experiencing a period of steadiness over the past six to eight months. While the trend over the past two years has shown a rise in the value of dairy replacements and beef-on-dairy cattle, the market seems to have found its balance. This positive stability is crucial for the dairy industry, allowing for growth and expansion, particularly in the Midwest and upper Midwest regions.

According to Bettencourt, dairy replacements prices seem to have settled, however, beef on dairy crosses not so much.

“The trend for the last two years or better has been the value of these dairy replacements were getting higher and higher,” Bettencourt says. “And for the last six to eight months, it just feels like we’ve kind of found a place to settle.”

A Conservative Approach to Growth
Internally, at TLAY, there has been an ongoing debate about whether to be cautious or optimistic about this upward trend. Bettencourt says there is confidence in the market’s potential to maintain its current levels for another 12 to 18 months. This optimism is based on the demand and supply dynamics observed, especially when it comes to younger replacement cattle, which appear to be valued at a high level.

“There is a growing demand towards younger dairy heifers,” he shares. “So, there’s growth on the horizon.”

This growth matches the need to supply the $8 billion dollars in processing investments forecast to come online in the next few years. Bettencourt says as long as cull cows and beef-on-dairy calves stay at the level they are at, the dairy replacement market will continue to perform well.

“I know it’s hard to wrap your head around it for some people, but these replacements really aren’t that high in relation to everything else,” he says.

Choices and Strategies for Producers
For dairy producers, the decision between focusing on beef-on-dairy calves or concentrating on growing replacements remains complex. Both strategies aim to maximize profitability and maintain herd health. While feed costs have been relatively reasonable, milk prices are not at level that generate significant profit, thus pushing producers to rely on cattle sales to support their operations.

“We’ve talked to some producers who are starting to make a few more dairy heifers,” Bettencourt shares, noting the good corn crop on the horizon will help keep feed costs relatively inexpensive. “However, when you throw in these cull cow and beef-on-dairy checks, that is true income and adding profitability to dairies.”

Holstein Versus Jersey: A Demand Perspective
When it comes to breed preferences, Bettencourt says Holsteins seem to be in slightly higher demand compared to Jerseys.

“There is a higher value of a beef-on-dairy calf that comes out of a Holstein compared to a beef-on-dairy calf that comes out of a Jersey or a Jersey cross, and there seems to be more availability in Jerseys than Holsteins right now,” he shares. “Holsteins are in slightly higher demand right now.”

Bettencourt says this has been the case for a while now. He also says there still is plenty of interest in Jersey and Jersey cross cattle, stating Jersey fresh cows and springers range from $2,700 to $3,200 and Holsteins anywhere from $3,500 to $4,100.

“In fact, I would say, of the expansions that we’re aware of, and we’ve been talking to customers about filling some of those procurements of replacements, it feels like there’s more growth and there’s more expansion where folks are looking for Jerseys and/or crosses,” he says.

Enthusiasm Remains
While challenges remain for those involved in the dairy industry, there is an overarching sense of optimism especially on the income derived from cull cows and beef-on-dairy calves.

Bettencourt says Jersey beef-on-dairy calves are going from $750 to $900 for day-old calves and Holstein beef-on-dairy calves are going anywhere from $1,200 to $1,350. He says a sale that they worked with sold dairy-on-beef cattle that weighed 550 lb. that went as high as $4.31 per pound.

“I mean, it seems like every other week there’s a new record,” he says. “It’s certainly supplementing income for these dairy producers.”

Dan Basse, president of AgResource Company emphasizes the production of beef-on-dairy crossbreds is critical for maintaining the industry’s current output levels.

“It is something that needs to be in every herd,” he says.

As the dairy industry continues adapting to market demands, there is hope that current positive trends will benefit producers for the foreseeable future. This balance offers a promising outlook for growth and stability within the industry.

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Transform Efficiency: The Evolution of Full Circle Jerseys

Wed, 06 Aug 2025 13:54:08 GMT

In the heart of Dalhart, Texas, a remarkable agricultural shift is underway at Full Circle Jerseys, a farm known for its robust herd of 5,000 milking cows. The farm is strategically transitioning its herd from straight Jerseys to Holstein x Jersey crossbreds. This change is driven by the pursuit of increased energy-corrected milk yield, and according to its management team, an overall enhancement of operational efficiency.

“In a nutshell the ‘HoJo’, as we call them, are simply a more efficient animal,” says Brandon Beavers, the farm’s general manager. “Not necessarily in terms of overall production, but in converting feed into milk solids.”

Full Circle Jerseys epitomizes the gold standard of agricultural integration. Alongside their dairy operations, they manage a feed yard in Oklahoma that specializes in backgrounding beef-on-dairy calves and includes a heifer-raising operation.

(Wyatt Bechtel)

Beavers articulates the level of integration they’ve achieved: “The farm basically is now fully integrated,” he states.

By producing their own feed and using a methane-capturing digester installed two years ago, the farm enhances its sustainability efforts and operational efficacy.

Leverage Technology
A pivotal element in Full Circle’s efficiency narrative is their embrace of advanced technology. Activity monitoring collars, a key technological tool, facilitate the monitoring of cow behavior.

“As the cow exits the milking parlor, the collar informs us if she needs attention,” Beavers explains.

This information complements other systems, such as automatic sort gates and a management rail, and optimizes time management by allowing the farm to focus on individual cow needs without disrupting the entire herd.

Beavers shares they now are better at time management when it comes to the cows, as they used to lock up 100% of the cows to work on a few. Now they can focus on the individual cow needs and not disrupt the entire herd.

In all areas of their Texas operation, measurement and data underpin decision-making. Daily milk production is scrupulously recorded with cutting-edge technology slated to soon record an individual cow’s milk yield, fat and protein content. Beavers expresses enthusiasm about the forthcoming advancements, including laboratory-grade analysis for each stall. This data, which provides insights into energy, health and feed efficiency, supports strategic decisions such as therapeutic care driven by subclinical indicators and herd management decisions based on milk production.

Comprehensive Calf Care
Attention to detail extends to their thorough calf care protocols. Immediately after birth, calves undergo a meticulous process — being weighed, tagged and having navels dipped in iodine, followed by a warm water bath and blow-drying. The cows are milked in a specialized parlor where colostrum testing occurs using a brix test.

“Anything over 22 brix is considered No. 1 feeding colostrum,” Beavers shares.

He says there are several purposes to washing a calf after birth.

“First, it helps clean the calf by reducing bacterial load the calf comes in contact with during the birthing process. It also helps dry the calf, which allows the natural defense mechanism of the hair coat to insulate the calf. The maternal cleansing also stimulates blood flow in the calf’s body and invigorates the calf,” he says.

Beavers adds the process of washing calves with warm water, then blow drying, is their attempt to imitate the natural process of a cow licking her offspring soon after birth.

“It replicates the cleansing, drying and blood flow stimulation while we are providing care for the calf in a clean, warm and dry environment,” he says.

A Comparative Look
While the dairy sector at Full Circle benefits from real-time data and technology, their feed lot operations involve longer feedback periods.

“In the feed lots, when we make a feed change, it takes us 150 days or 180 days to obtain results to go off of,” Beavers says. “With the level of technology and data that we collect from the dairy, it’s a night and day difference.”

Full Circle Jerseys exemplifies how integration and technology can revolutionize modern farming, elevating efficiency, sustainability and productivity. By continually innovating, they set a benchmark for the future of dairy farming.

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Community-Fed and Family-Led: The Unique Story of Brey Family Beef

Mon, 28 Jul 2025 15:08:52 GMT

At Brey Cycle Farm in Sturgeon Bay, Wis., beef-on-dairy is just a small piece of the family’s 1,500 registered Holstein operation — but it serves a big purpose. What started as a way to help maintain the farm’s herd size evolved into something more meaningful — an avenue to give back to consumers, connect with the community and promote transparency on their 121-year-old operation.

Located in the scenic countryside of Door County, Brey Cycle Farm has been a family-run operation since 1904. Over five generations, the Brey family has lived by their mantra: “To learn and grow so that all may prosper.”

That sentiment remained strong when Tony and Moriah Brey returned to the farm in 2007 and started milking just 100 cows. By 2016, when Jacob and Lauren Brey joined the team, the herd had grown to 400 cows. With more family involved, the Breys knew staying competitive meant being open to new opportunities.

“Typically, we always focused on growing the herd. But there was a time frame where we were not sure which direction we were going to go,” Moriah Brey recalls. “So, the boys began using beef-on-dairy to help keep numbers steady.”

After using Angus semen on a few of their lower-end Holsteins, the family had a group of crossbred animals ready to go to market in the spring of 2020. Rather than send them to the sale barn, they saw an opportunity to process and sell the beef themselves.

“We had beef available and a desire to give back,” Brey says. “We started processing our own animals and put in a retail store right away. It’s a little red shed that sits near my driveway across the road from the farm.”

Not long after the launch of Brey Family Beef, the COVID-19 pandemic threw a wrench in their plans. However, unlike many businesses during the pandemic, Brey Family Beef prospered.

“During COVID, people would call ahead and we would run the beef out to their car. And it actually worked really well because people didn’t want to come in to touch, see or feel things. They wanted to keep their distance. I’d like to tell you we had this crystal ball and knew things would shut down and everyone would stop in our driveway to buy meat, but we didn’t,” Brey says with a laugh. “It all lined up and worked in our favor.”

(Brey Family Beef)

While the small retail store’s timing was lucky, the product spoke for itself. Demand for Brey Family Beef grew, and the family leaned into the momentum.

“Our Facebook page started to take off, and others heard about us by word of mouth,” Brey notes. “People started reaching out with questions — not just about the meat, but about the farm, how the animals were raised, what they ate and how we handled them. And that opened a door for us to really tell our story and help people understand what modern dairy and beef farming looks like.”

A Local Staple
One of the guiding principles behind Brey Family Beef has been keeping everything local, starting from the calves and extending all the way to the final product.

“All of the meat comes from our farm,” Brey explains. “Nothing comes from outside of Door County.”

Much like their dairy operation, the crossbred calves are born and raised on the farm, often alongside their dairy counterparts.

“We raise the calves and grow all of our own feed. Then, when the calves are old enough, they graze one of our pastures until they are fed a finishing diet. Everything comes from here on the farm,” Brey says. “It’s all connected.”

That local loop extends to their beef finishing program as well. Even the processing is done close to home. By keeping every step of the process local, the Breys maintain full oversight of their product’s quality and consistency.

That local pride shows up in creative ways, too. The Breys recently partnered with a nearby cherry farmer to craft Door County cherry-and-cheddar-flavored beef sticks and summer sausage — a flavorful nod to their region and a testament to what can happen when local producers come together.

“We’re proud to keep it all here,” Brey adds. “It’s not just about raising good beef. It’s about doing it in a way that stays true to who we are and where we come from.”

(Brey Family Beef)

The Devil is in the Details
From the start, building a direct-to-consumer beef business was a family effort. Jacob and Tony focused on the cattle while Moriah and her sister-in-law, Lauren, took charge of customer outreach, marketing and day-to-day operations. With demand for their local products continuing to rise, it became clear that staying successful would require careful planning and collaboration.

“I’d run spreadsheets on what it cost to raise the animals, factor in what we needed to make and create a blend price for the products,” Brey explains. “When you’ve got a different amount of hamburgers, steaks and roasts that come from each cow, you have to do the math to make it all pencil out.”

That attention to detail extended beyond the spreadsheet. While some customers preferred to order quarters or halves in advance, others wanted the flexibility of shopping by the cut. To meet both needs, the Breys introduced more customer-friendly options — including preorders, customized beef bundles and seasonal holiday boxes.

“We wanted people to feel like they had choices,” Brey says. “Whether someone’s looking for a quarter of beef or just a few steaks for the grill, we try to make it easy.”

On the marketing and digital side, Lauren took the reins.

“Lauren works full time for Farmers for Sustainable Food, and she had great contacts and a good sense of how to build a brand,” Brey says. “She got our website off the ground, keeps it updated, manages plugins and hosts the online store. It’s all very user-friendly thanks to her.”

(Brey Family Beef)

Beef That Brings People Together
At Brey Family Beef, success goes beyond the amount of beef sold. From the beginning, the business has been built around people — placing value not only their customers, but also their employees and the broader community.

“All of our employees get beef at half price for their families,” Brey says. “We also give a lot away. It helps us meet people in the community and take care of the people who take care of the cows.”

Beyond taking care of their employees, Brey Family Beef often shares beef sticks during tours and community events and provides samples to local schools — reinforcing their belief that food is a powerful tool for connection and community building.

“People want farm-to-table. They want to know their farmer,” Brey says. “And we can provide that while also educating them on how we farm and why. We always emphasize that all sizes of farms are acceptable. There are lots of different ways to do things well.”

Currently, no major expansion plans are on the horizon. But the Breys remain open to small improvements and evolving needs. Rather than trying to fast-scale their retail beef brand, they have chosen a steady, intentional pace.

“We’re content with where we are at for the moment,” Brey says. “It checks the boxes for us. It gives us a way to give back, meet people and offer a product we’re proud of.”

That balanced mindset also extends to pricing.

“Right now, we’re probably priced lower than the grocery store, but it balances out,” she says. “And when the market dips, our loyal customers stick with us. That means a lot.”

In the end, Brey Family Beef may be just one piece of their broader farm operation — but it reflects the heart of who they are.

“It’s a small part of the big picture,” Brey reflects. “But it’s one that lets us share who we are and why we do what we do. That’s what makes it worth it.”

Success From The Start: Calf Health Starts Before Birth

Tue, 15 Jul 2025 13:11:34 GMT

If a calf struggles during its first 60 days of life, it’s going to carry that through all phases of production. Starting a calf, whether in a traditional beef or beef-on-dairy scenario, the right way is paramount to the lifetime health of that animal.

This is the message stressed by Dr. Taylor Engle, Four Star Veterinary Services, during episode eight of “ The Future of Beef Show ” podcast. He says success starts before a calf is born.

“There are a lot of really good genetics in the beef industry we can use. However, if you put that calf in an environment to fail, genetics does not play a factor,” he says. “We have to do everything right from an environmental piece to maximize the genetic potential.”

Check out the podcast to learn more about these five key messages discussed by Engle and the podcast’s hosts:

Environment matters more than genetics. Engle emphasizes if you put a calf in an environment to fail, genetics won’t save it. Management and early life conditions are critical to an animal’s success.
Calf health starts before birth. Proper care of the cow before calving, quality colostrum and a clean birthing environment are crucial for a calf’s lifetime health.

Engle encourages producers to think about the cow’s condition before, during and after breeding.

“Everyone gets really fired up — and rightfully so — about colostrum. Not all colostrum is created equal,” he says. “It’s what we are doing to set that cow up to have the best colostrum for that calf. Whether it’s beef-on-dairy or native, the right vaccines for the right diseases at the right time matters.”
Communication is key across the production chain. Sharing information about calf health, vaccination history and management practices between different stages of production can significantly improve overall animal performance.

Engle encourages producers to record vaccination and treatment information and then share it. Communicating with the feedyard is important to help the feeder decide on how to treat cattle.
Don’t be quick to treat — understand the root cause. Instead of immediately administering antibiotics, veterinarians should first investigate the underlying management or environmental issues causing health problems.

“We were trained to think it’s a disease, and more often times than not, there is a disease present. But there’s been something along the process where we have stressed that animal and caused disease,” he explains. “We’re always looking at it from an environmental standpoint and a management standpoint — the calf isn’t the culprit. What’s going on? Why did that calf break with respiratory disease? They don’t spontaneously get sick. Something happened. Was it a weather, feed or stressful event?”

He adds management strategies and mentality can be keys to determining the cause of a sickness.

“It’s a hard thing — whether you’re a nutritionist or vet — to have that hard conversation with a producer, be upfront with them and say, ‘It’s something we’ve done,’” he says. “A lot of times, there’s management practices that messed up along the way, and the result is a disease.”

In his practice, he works with the producer to help them understand and recognize the management strategies to improve the outcomes.

“In the beef industry, a lot of the mentality is, ‘We’ve never done it this way,’” he says.
“In comparison, in the poultry and pig industries, producers will say, ‘If it increases my production, I’ll do it.’ They have the mentality of being willing to give something a try to see if it increases health.”

Engle adds, “I always tell producers if you want A results, you got to give A effort,” he explains. “You can’t have a C -plus effort and expect A results.”
Stress management is more important than treatment protocols. Focus on reducing stress and creating optimal conditions for calves, rather than relying solely on medical interventions.

“The calves don’t lie,” Engle says.

He emphasizes the importance of careful observation, advising producers to “read calves every day” and make real-time adjustments.

Beef-on-Dairy Calf Health
Engle also has extensive experience with beef-on-dairy calf management and production and discussed how those animals compare to traditional beef calves, highlighting how multiple touch points and movements bring beef-on-dairy calves unique challenges — including different feeding systems and varied vaccine and management protocols at each location.

As a positive, he says, “In the beef-on-dairy space, we have all the data points, or we have the opportunity to collect all the data points. Then you can start making decisions.”

With this complex — but data-rich — production model, there is significant potential for improving calf health and performance.

Engle challenges producers to think holistically about animal health, management and production.

“It’s not the animal that’s usually causing the problems,” he says in summary. “It’s usually producer’s management or oversight. As farms have gotten bigger, the skill gap as we go higher actually closes. Everybody who has 10,000-head of cattle on feed, or more, probably knows a lot about feeding cattle. But what are you going to do for a competitive advantage that the next feedyard isn’t? I think a lot of that’s looking internally at your management strategies and your consulting team. It’s a team effort to get to where you want to be. Set those goals and look at what you need to do better to be where you want to be in the next five to 10 years.”

The Growing Intersection of Dairy and Beef: How to Navigate Market Dynamics and Opportunities

Tue, 08 Jul 2025 13:39:10 GMT

Dairy producers across the United States are increasingly turning their attention not just to milk markets, but also to the burgeoning opportunities within the beef market. In recent years, beef-on-dairy has emerged as a significant alternative profit source for many dairies nationwide.

Dan Basse, president of AgResource Company, emphasizes the production of beef-on-dairy crossbreds is critical for maintaining the industry’s current output levels.

“It is something that needs to be in every herd,” he says.

The integration of bottom-end genetics from dairy herds to produce beef appears to be an essential strategy moving forward. And as the average age of cow-calf producers climbs into the upper 60s, Basse predicts beef-on-dairy will remain in demand for years to come. He believes this approach will help sustain beef production and supply, despite challenges faced by traditional beef producers.

Olivia Willrett, market analyst at Five Rivers Cattle Feedlot, recently shared market dynamics from the feedlot perspective during the Global Dairy Conference in Chicago, Ill.

The Cyclical Nature of Cattle Inventory
As Willrett points out, the U.S. cattle inventory reflects a long cycle defined by expansion and contraction phases. Starting with a liquidation phase often triggered by drought, it’s characterized by the reduction of cow inventory.

“That is the other factor we need to consider when we look at the total U.S. cattle inventory — the long-term trend downward,” Willrett shares, noting how despite a contraction and expansion phase, levels never quite expand back to where they were at.

“Generally, when we contract, if we liquidate that cow herd again, we do it into a new low,” she says.

Since 2019, the U.S. has observed a significant contraction with approximately 8 million fewer cattle — marking the lowest herd size in roughly 70 years.

Beef Production Efficiency and Consumer Demand
Willrett says the divergence between cattle inventory and beef production has increased. Despite a reduction in cattle numbers, the industry has managed to produce approximately 10% more beef using 34% fewer cattle than in 1975. This remarkable feat arose from advancements in breeding strategies, genetic improvements, feedlot management and packing techniques. Beef production kept pace with — and even outpaced — domestic consumer demand thanks to these efficiency gains. U.S. consumers have consistently shown an appetite for beef, propelling a steady increase in beef production quality, with current year ratings showing a rise from 65% to approximately 85% in choice and prime ratings.

“This captures more value and more product per head on that animal, to the tune of about 287 lb. — almost a 50% increase over the last 50 years. Why we’ve done all this is because of the consumer,” Willrett says. “The consumer didn’t necessarily hear that we’ve got fewer animals to work with each term of the cycle. They decided they wanted to continue eating beef, and we as producers found ways to deliver that product to them.”

Price Trends and Feedlot Dynamics
Beef pricing has exhibited progressive increases, accentuated by peaks even higher than those witnessed during the 2014 cycle. Currently, on an inflation-adjusted basis, prices mirror those of 2014 — despite leaner cattle numbers. Consumers’ continued strong demand contributes to sustained price levels, with U.S. beef demand remaining resilient.
The growing role of dairy within beef production aligns with consumer willingness to accept current retail beef prices.

“Today, the U.S. consumer is willing to expect retail beef prices at $8.70 per pound and calf and feeder cattle prices that are soaring,” Basse says.

Feedlot operations, meanwhile, have adapted by feeding dairy-influenced cattle longer —contributing to higher feedlot occupancy rates but slower turnover.

Willert says over the last 15 years, we’ve grown our choice and prime rating about 20 points, from 65% to about 85% so far this year.

“We’ve used our genetics, feeding and operational strategies to figure out how to maximize the quality of these animals, while also doing so in an efficient manner,” she says.

The Growing Intersection of Dairy and Beef
As many in the dairy industry are aware, there has been a significant rise in the beef-on-dairy crossover in recent years. This trend has prompted dairy professionals to ponder, “When is high too high?” As the market continues to evolve, questions about supply levels and pricing trends have become increasingly pertinent.

Willert emphasizes the importance of understanding the U.S. cattle feed inventory, which is a valuable dataset published monthly by USDA. This report surveys feedyards across the United States with a capacity greater than 1,000 head, providing vital insights into inventory levels and movement in and out of these facilities.

As we look at the data for 2025, it’s clear fewer cattle are available — which is a direct result of tighter cow and calf supplies. For those maintaining a close watch on the numbers, the June report indicated a further decrease of 1.1% to 1.2% from the previous year. Despite this downward trend, current supply levels remain well above those recorded between 2015 and 2017.

“We’re obviously seeing supplies at surface value higher than a year ago,” Willert says. “But we’ve also achieved those high prices not necessarily because the cattle are in the future, but because we’ve synthetically reduced the supply of market-ready cattle.”

Factors influencing this reduction include a strategic increase in the number of days feeder cattle spend in feedyards, allowing them to grow larger and more efficiently. As Willert points out, this shift helps maximize economic returns by optimizing the growth cycle.

Trade and Consumption Trends
The intricacies of the beef market extend beyond production metrics. Import strategies have become increasingly vital, especially as non-fed slaughter levels have hit lows. Lean imports help balance the demand for blended trim products crucial for popular ground beef varieties. On the export front, while recent declines have been observed due to geopolitical factors like the Chinese market’s volatility, the overall long-term trend remains positive, with exports contributing substantially to cattle value. Domestically, beef consumption continues to grow, bolstered by lifestyle shifts toward higher protein diets, supported by cultural changes spurred by global events like the COVID-19 pandemic.

By leveraging quantitative data and strategic insights, dairy industry stakeholders can better navigate pricing pressures and supply challenges — leading to more informed decision-making in this dynamic market landscape. As the pursuit of excellence in beef production continues, the collaboration between the dairy and beef sectors provides new opportunities for growth and sustainability.

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Are Beef-on-Dairy Animals Really Worth the High Price Tag?

Are Beef-on-Dairy Animals Really Worth the High Price Tag?

Fri, 27 Jun 2025 21:25:43 GMT

Beef-on-dairy calves are no longer just a trend; they’re a business strategy for producers aiming to squeeze more value out of every breeding decision. For dairy farmers, they offer a way to turn lower-producing cows into a new revenue stream. For feedlots, they promise improved feed efficiency and more desirable carcasses.

“Dairy producers are breeding lower milk production cows to beef sires to increase calf revenue,” says Melanie Concepcion, a Ph.D. student at Michigan State University, who recently presented on the economics of beef-on-dairy animals. “The idea is to add more value to existing Holstein calves by improving muscling, hide quality and market desirability.”

According to CattleFax, beef-on-dairy crosses started showing up in the fed slaughter mix around 2019. Today, they represent an estimated 2 million to 3 million head annually, contributing roughly 15% to 20% of total U.S. beef production and signaling a major shift in how dairy genetics can serve the beef supply chain.

“They’re here to stay,” Concepcion adds. “And the number of beef-on-dairy cattle is only expected to grow.”

Study 1: Feedlot Gains and Carcass Traits
To measure how these crossbreds stack up, Concepcion launched a study evaluating 75 Holstein and 75 beef-on-Holstein steers from Michigan calf raisers. Raised under identical conditions, the steers transitioned from starter to finishing diets and the performance differences were not surprising.

Beef-on-dairy steers:

Reached market weight 21 days faster
Converted feed more efficiently
Posted a 20% larger ribeye area
Scored lower yield grades, signaling better muscling

“They’re more feed efficient and have a greater ribeye area and fat thickness than the Holsteins,” Concepcion explains. “Their yield grade is also lower, which is a good thing because it means more yield and muscling.”

However, liver health raises red flags. Concepcion finds that 39% of the beef-on-Holstein steers develop liver abscesses, some severe enough to adhere the liver to the carcass.

“In those cases, you see trimming losses,” she says. “And that hurts overall carcass value.”

Premiums and Pitfalls: Are Crossbreds Priced Right?
Economically, the study shows that beef-on-dairy calves bring greater value but also come with a price tag that’s tough to justify.

“We pay $310 more per calf for the beef-on-Holsteins, but our data shows we should have only paid $273 more,” Concepcion says. “Yes, they should be worth more, but not as much as we paid.”

With some day-old beef on dairy crossbreds fetching upward of $1,000, Concepcion says the numbers simply don’t justify the premium in many cases.

“These calves clearly have more value than Holsteins, but not to the degree that some buyers are currently paying,” she says. “We’re still seeing inflated calf prices that don’t reflect actual feedlot performance or carcass returns.”

Study 2: Corn Silage and Liver Health
Looking to address liver concerns, Concepcion led a second study focusing on dietary fiber. The hypothesis: increasing corn silage in the finishing ration could help reduce liver abscess incidence by supporting better rumen health.

The study included 65 Holstein and 65 beef-on-Holstein steers. Each breed was fed a finishing diet with either 20% or 40% corn silage.

“We wanted to see if increasing fiber through higher corn silage inclusion reduces abscess rates,” she says.

The findings were clear:

Steers on the 40% corn silage diet had significantly fewer liver abscesses
The diet change did not affect feed efficiency or cost of gain
Beef-on-dairy steers continued to outperform Holsteins in carcass traits, regardless of diet

“Increasing corn silage inclusion effectively reduces the amount of liver abscesses in cattle, regardless of breed,” Concepcion says.

Carcass Performance Remains Strong
Even with the shift in diet, beef-on-Holstein steers continue to demonstrate a clear advantage in carcass traits and processing yield compared to purebred dairy steers. These crossbreds exhibit:

Higher hot carcass weights
Greater dressing percentages
Larger ribeye areas
Lower kidney, pelvic and heart (KPH) fat

“Adding beef genetics to Holsteins results in more muscling,” Concepcion notes. “And that leads to higher carcass value.”

Interestingly, marbling and quality grade remain similar between breeds and diets. Most cattle grade in the low to mid-choice range, offering acceptable quality without excessive feed costs. Additionally, the lower KPH fat and higher dressing percentages give processors more saleable product, further boosting the overall economic benefit.

“Even with differences in feed and frame size, beef-on-dairy cattle continue to show consistency in carcass composition,” she adds. “This predictability is valuable for both feeders and packers.”

Feedlot Advantages Might Not Justify Current Calf Prices
Despite the performance benefits, the pricing issue resurfaces. In the second trial, beef-on-Holstein calves cost Concepcion $353 more than Holsteins, but break-even data shows they should only cost $281 more.

“We overpaid again, just like last time,” Concepcion says. “These studies show us that beef-on-dairy calves should be priced at a premium, but not as high as the current market suggests.”

Feed costs were actually lower for beef-on-dairy steers, thanks to shorter days on feed. And while the 40% corn silage diet increased feed cost slightly, it didn’t impact the cost of gain, making it a viable strategy for improving liver health without compromising efficiency.

Looking Ahead
While beef-on-dairy calves offer clear advantages in feedlot performance and carcass quality, Concepcion notes the market still needs tools to match pricing with actual value.

She continues to explore what drives health, gain and grading in these crossbreds, and her latest work includes studies on gut and liver health as well as comparisons across breed types like Simmental-Angus, Holstein and beef steers.

“The more we understand how these cattle grow, grade and ultimately eat, the better we can manage and market them,” she adds.

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To watch Cocepcion’s full webinar, click here:

Beef-on-Dairy: A Very Lucrative Proposition for Producers

Fri, 09 May 2025 13:46:43 GMT

The U.S. beef industry is experiencing a significant transformation, with dairy producers playing an increasingly crucial role in meeting the nation’s beef demand. This shift is driven by several factors, as explained by Dan Basse, president of AgResource Company on a recent episode of Professional Dairy Producers (PDP) “Dairy Signal.” According to Basse, beef-on-dairy crossbreds have become an indispensable part of the industry.

The U.S. beef cattle herd has reached its lowest numbers in 64 years, a trend unlikely to reverse in the near future. Persistent drought conditions and strong cattle prices have discouraged beef producers from retaining heifers, leading to tighter supply conditions. In response, the beef industry has turned to dairy farmers to produce crossbred animals, which serve as a vital supply line to meet growing beef demand.

Beef-on-Dairy Needs to be in Every Herd
Basse emphasizes the production of beef-on-dairy crossbreds is critical for maintaining the industry’s current output levels.

“It is something that needs to be in every herd,” he said.

The integration of bottom-end genetics from dairy herds to produce beef appears to be an essential strategy moving forward. Basse doesn’t foresee an end to this demand any time soon.

As the average age of cow-calf producers climbs into the upper 60s, Basse predicts beef-on-dairy will remain in demand for years to come. He believes this approach will help sustain beef production and supply, despite challenges faced by traditional beef producers.

“I don’t see a way how you consolidate or make that cow-calf operator to produce enough animals going forward,” he shares.

The market is attempting to incentivize dairy producers with substantial financial offers, with some wet calves generating $1,000 plus, indicating a stable market through at least 2028.

Phil Plourd, president of Ever.Ag Insights, concurs with the ongoing profitability of breeding beef-on-dairy

“It’s a classic ‘bird in hand versus two in the bush’ situation. In this case, the bird in hand is something like $900 for a day-old beef calf,” he says. “That still strikes producers as a better deal than the risks and uncertainties of raising a dairy heifer. The beef situation isn’t any different, either, with the Cattle Report showing the smallest beef inventories since 1961 and all-cattle and calf inventories since 1951. The whole situation is one of the more intriguing mysteries I’ve seen in the 25-plus years I’ve been hanging around the dairy industry.”

Consumer Trends and Market Outlook
The growing role of dairy in beef production aligns with consumer willingness to accept current retail beef prices. Currently, prices are soaring, with retail beef reaching $8.70 per pound. Despite these prices, demand remains robust, and calf and feeder cattle prices continue to rise. Basse notes the market is solid for the foreseeable future, with some uncertainty beyond 2028.

“Beyond that it is always mercury,” he says. “Today, the U.S. consumer is willing to expect retail beef prices at $8.70 per pound and calf and feeder cattle prices that are soaring.”

The beef-on-dairy approach is not just a temporary fix; it’s become a strategic component in the U.S. beef production landscape. As the industry adapts to changing conditions and consumer demand, dairy producers will continue to be key players in ensuring beef supplies remain steady.

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Liver Abscesses Reduced with Beef-Cross Feeding Strategy

Tue, 22 Apr 2025 16:00:00 GMT

As the dairy-beef crossbreeding phenomenon continues to evolve, there remain unsolved challenges to maximizing the performance and value of those animals.

We know those calves aren’t the same as fullblood, conventional beef animals. And we know we can’t feed and raise them exactly the same. But can we get closer to matching the performance of their beef cousins, particularly related to challenges like their currently high incidence of liver abscesses?

A recent Iowa State University study sought to bring some clarity to the lifetime nutrition of beef-cross animals, and how it influences their performance and ultimate carcass quality. The study started with 120 day-old, dairy-beef cross steers, and segmented them into 4 feeding groups:

A high-starch starter ration for 60 days, followed by a high-starch pelleted ration for 60 days.
A high-starch starter ration for 60 days, followed by a forage-based TMR ration for 60 days.
A low-starch starter ration for 60 days, followed by the high-starch pelleted ration for 60 days.
A low-starch starter ration for 60 days, followed by the forage-based TMR ration for 60 days.

All calves were weaned from a common liquid ration at 60 days. Following the 60-day postweaning experimental phase, the entire study group was fed a common grower TMR ration for 140 days, and a common finishing diet for another 200 days.

In the post-weaning receiving phase, the two groups fed the pelleted ration had significantly higher feed intake, average daily gain (ADG), and ending weight. However, that disparity narrowed during the grower phase. By the end of the grower phase (~260 days), there was no significant difference in bodyweight between the four groups.

In the finishing phase, there was also no significant difference in feed intake or ADG between any group. But the low starch/TMR group was unique in that it had a slightly different growth curve. Those calves continued steadily increasing in daily feed intake and growth as the other calves were slowing down.

“Some of this may be due to compensatory gain following the receiving phase, but we speculate some may also be due to a healthier rumen in the later finishing period,” said Iowa State Extension Beef Specialist Denise Schwab, primary investigator of the study.

Harvest data indicated no difference in the quality grade, yield grade, or carcass weights between the four groups, but the low starch/TMR group had slightly heavier carcass weights.

Most telling was the disparity in the incidence of liver abscesses and condemned rumens. In total, the incidence of liver abscesses across all groups was 19%, which is well below current industry incidence for dairy-beef cross steers. The high starch/TMR group had more than 30% incidence of liver abscesses, while the low starch/TMR group had less than 5%.

Rumen condemnations were highest for the high starch/high starch pellet group, at 19%. Comparatively, the low starch/TMR group was the lowest, at just 4%. Overall, the low starch/TMR group had an average of 20% fewer liver abscesses and rumen condemnations compared to the other three groups.

In terms of numeric economic returns, the low starch/TMR group had the highest average carcass value, and the high starch/TMR group had the highest net economic returns.

A summary of the study, which was supported by the Iowa Beef Industry Council and Iowa Beef Checkoff, can be found here .

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A Resilient Comeback: U.S. Bovine Semen Industry Sees Growth in 2024

Tue, 18 Mar 2025 13:57:20 GMT

After two years of declining sales, the bovine semen industry is experiencing a remarkable resurgence. Reports from both the dairy and beef semen sectors indicate increased sales in 2024, showing a promising trend that might not only match but potentially surpass the record levels seen in 2021. Jay Weiker, President of the National Association of Animal Breeders (NAAB), emphasizes the optimistic outlook for the industry, suggesting that if the current growth trajectory persists, new record sales could be on the horizon.

“Unit sales have not yet returned to the record levels of 2021. However, if the current trajectory continues, new records can be expected in the near future,” Weiker says.

In 2024, total unit sales increased by 4%, culminating in nearly 69 million units. This 2.7 million unit increase nearly compensates for the previous year’s decline. Moreover, the value of exported semen rose by over 6%, or roughly $20 million, establishing a new record of $326 million.

Dairy and Beef Segment Breakdown
The dairy sector, both in domestic sales and exports, saw a significant 4% growth compared to 2023. This equates to an additional 1.9 million units, summing up to 48.8 million units. Meanwhile, beef unit sales also increased by 4%, with over 850,000 additional units sold, reaching a total of 20 million units. Delving deeper, beef-on-dairy semen sales grew by about 317,000 units both in the U.S. and internationally, while beef-on-beef sales saw an increase of 408,000 units, reversing the decreasing trend of the past two years.

Global Adjustments and Shifts
Globally, dairy producers are recalibrating their reproductive strategies to maximize economic returns. They are now employing a mix of conventional, gender-selected dairy and beef semen to enhance their financial performance. In the U.S., this trend is visible in the shifting preferences for semen types. In 2024, gender-selected dairy semen led the pack with 9.9 million units, marking a 1.5 million unit increase.

The Rise of Heterospermic Semen
An intriguing development in 2024 is the surge in heterospermic beef product sales. Over 2.8 million units were sold, more than twice the numbers from 2023. Domestic sales dominated with 2.4 million units, making heterospermic beef the second largest beef semen category after Angus.

Domestic Market Dynamics
In the domestic market, dairy units increased by 5%, adding nearly 705,000 units, with the total market size reaching 16.2 million dairy units. The domestic beef units saw an overall increase of 304,000 units. The most notable domestic shift was towards gender-selected semen, rising by 1.5 million units or 18% and now comprising 61% of the dairy units used in the U.S.

Robust Global Demand
On the international front, U.S. bovine semen exports continue their upward trajectory despite economic and geopolitical challenges in major markets like China and Russia. Encouraging signs of recovery in Brazil, growth in Western Europe and Central Asia, and expanding opportunities in the Middle East and Africa reflect the global strength of the industry. Beef semen exports rose significantly and according to Dr. Sophie Eaglen, NAAB’s International Program Director, this stems from the increased demand from Brazil and China, alongside a growing number of smaller markets.

“This trend may be attributed to the global adoption of the beef-on-dairy strategy, which is gaining traction across diverse regions” Eaglen says.

The U.S. bovine semen industry has made a strong comeback in 2024. With positive trends in both domestic and international sales and the growing acceptance of innovative breeding strategies, the foundation is laid for future growth and advancements in livestock reproduction. As these trends continue, the industry stands on the verge of a promising era characterized by growth, innovation, and global expansion.

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Beef-on-Dairy: A Critical Solution to the Shrinking U.S. Cattle Herd

Wed, 05 Feb 2025 16:04:57 GMT

The U.S. beef cattle herd is the smallest it has been in 64 years, and there’s little indication that rebuilding will happen anytime soon. Persistent drought and strong cattle prices have discouraged beef producers from retaining heifers, further tightening supply. As a result, the beef industry has increasingly turned to dairy farmers to produce beef-on-dairy crossbreds to help meet growing demand.

USDA NASS says as of January 1 2025, there were 86.7 million head of cattle and calves on U.S. farms.

(Lindsey Pound )

Beef-on-Dairy’s Growing Role in the Industry

During the 2024 MILK Business Conference, Dale Woerner of Texas Tech University highlighted the impact beef-on-dairy has had on the industry.

“Ultimately, these crossbred animals have improved the conventional straight Holstein steer so much, and they’ve offered more volume and a really high-quality product into the beef industry,” he said. “With low native cattle numbers, the industry has to have these cattle. Not only do they have to have them, but they have to have them grade prime or choice.”

Woerner believes that beef-on-dairy crossbreds have added immense value to the beef supply chain and should be seen as a long-term solution. “Beef-on-dairy crossbreds have added enough value to the beef supply chain that we should never change what we’re doing. We should continue creating these crossbred cattle for the future.”

A Reliable and Consistent Supply of Cattle

With native beef cow numbers dwindling in recent years, beef-on-dairy crossbreds have stepped in to fill a critical gap, offering both consistency and quality during a time of supply uncertainty. Despite inevitable market fluctuations, Woerner is confident these crossbred cattle are here to stay.

“While we can’t promise that we’ll always see $800-$900 for a beef-on-dairy calf as we do today, I don’t think we’ll ever return to the low value of purebred Holstein steers from the past,” Woerner added.

Feedlots have become especially reliant on these crossbreds. “Feedlots need these animals – they’re a top commodity,” Woerner noted. “Over the years, many feedlots have gained experience in feeding beef-on-dairy cattle, optimizing their efficiency and performance. From a feedlot perspective, these cattle are in higher demand than ever before.”

The Value of Traceability

Looking ahead, Woerner thinks it’ll take at least three to five years to rebuild the beef herd, depending on weather and market conditions. But even with that, beef-on-dairy crossbred calves are still going to be a valuable part of the industry. One big advantage he sees with these animals is the traceability they offer, which adds extra value and transparency throughout the supply chain.

“Even when native cattle numbers rebound, the traceability system in place with beef-on-dairy crossbreds will continue to offer a level of accountability that sets these animals apart in the marketplace,” he added. “I wouldn’t be surprised if feedlots and packers start offering a premium for that kind of information.”

Challenges Ahead

While the native beef herd has reached record lows and prices have skyrocketed in recent months, beef-on-dairy crossbred cattle have stepped in to help fill the gap. Woerner noted that these crossbreds have provided much-needed consistency and quality during a time of uncertainty. And although the beef herd is expected to gradually rebuild over the next few years, it’s clear that the beef industry will continue to rely on these crossbred animals to meet demand and keep the pipeline full.

Even though the beef herd is expected to rebuild in the coming years, analysts warn that it won’t happen overnight. Arlan Suderman, chief commodities economist at StoneX, pointed out that the industry hasn’t even started rebuilding the breeding herd yet. “The next takeaway is that we have not started rebuilding the breeding herd. As such, perhaps we have a little higher numbers over the next half year or so, but then things get tighter, and more significantly tighter once we actually do start holding back heifers,” Suderman explained.

A Long-Term Solution

With native cattle numbers still under pressure, beef-on-dairy crossbreds are providing the industry with a critical supply of cattle. Their value—through efficiency, consistency, and traceability—ensures they’ll remain an essential piece of the beef supply chain, even as the market continues to evolve.

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10 Beef Production Stories of 2024

Mon, 30 Dec 2024 11:50:00 GMT

We rounded up some of our most read beef production stories from 2024.

The Simple, Yet Most Essential Nutrient for Cattle

Should You Keep Females from First Calf Heifers?

Liver Abscesses in Beef-on-Dairy Cattle are Costing Packers Big Money

What to Feed When There’s Nothing to Feed

Chasing the Elusive Second Calf

Tips for Dealing with Wet, Muddy Feedlot Conditions

Management Tips for Receiving New Calves Into Feedlot

Tips for Managing Calving in Muddy Conditions

What to Consider Before Selling or Buying Heifers

When to Assist with Calving

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Is Beef Breeding Derailing the U.S. Dairy Industry?

Tue, 17 Sep 2024 20:27:30 GMT

Beef-on-dairy breeding has revolutionized the U.S. cattle industry, shored up dwindling fed-beef cattle supplies, and added considerable black ink to the bottom lines of dairies in recent years.

But is it a phenomenon gone too far? Regardless of industry, mega-trends can carry with them unintended consequences. Veteran dairy data expert and thought leader Steve Eicker, DVM, fears the lure of lucrative near-term cash-outs on beef-cross calves may be altering the course of the U.S. dairy business to damaging degrees.

Eicker, co-founder of Valley Agricultural Software and its popular Dairy Comp 305 herd management software, acknowledged that beef-cross calves have plugged many holes in the nation’s beef animal supply. At just over 28 million head, the U.S. beef cow herd size is at a 70-plus-year low.

Feedlots have welcomed beef-cross calves to keep their pens full, and at premium prices to boot. This past summer, newborn beef cross calves sold for as high as $1,000/head or more, with $600-800/head the norm.

But at what true cost to the dairy industry? Eicker believes the chinks in the armor are beginning to show and will become more apparent in the months and years ahead. The factors that are being affected include:

Heifers are in short supply – Creating more beef-cross calves has resulted in less opportunity to produce dairy heifer calves. In just two years, from the start of 2022 to 2024, the total number of replacement dairy heifers in the U.S. has dropped more than 10%, part of a 7-consecutive-year decline in the nation’s heifer inventory. At slightly over 4 million dairy heifers, the national supply is at a 20-year low. What’s more, just 2.59 million heifers are projected to calve and enter the nation’s lactating herd this year -- by far the lowest inventory in 22 years of USDA projections. Commensurately, heifer prices have climbed precipitously through 2024 as dairies scramble to secure them.
Removals have slowed – Marketing dairy cows for beef has also hit record-low territory. Because dairies are having a hard time finding enough heifers to keep their stalls filled, they are hanging onto cows longer. In the week ending July 6, 2024, just 40,189 dairy cows were slaughtered nationwide, the lowest total in any week since Christmas 2009, and more than 20% lower than the same week in 2023. By August 17, only 1.74 million head of dairy cows were sold for beef this year, compared to 2.04 million head in the same time period last year. Eicker said the detrimental effects of this data are three-fold. First, dairies give up the potential of introducing the most current genetics into the herd that heifers deliver. Second, “those cows that are removed are in far worse condition, and thus bring less income at salvage,” noted Eicker. Consequently, the beef supply is also shorted by those lighter cows that are in worse condition. Third, he is concerned that delaying the removal of market cows will negatively impact their condition and welfare.
Milk production is down – “U.S. milk production is dropping because we have far too many low- producing cows that we cannot replace,” declared Eicker. Again, the numbers tell the story. Total milk production has flatlined at just over 225 billion pounds annually since 2021, after growing incrementally each year since 2014. In the most recent USDA Milk Production Report , average milk production per cow dropped 13 pounds/head for April-June 2024 compared to the same window in 2023, and total milk production for the quarter was down 624 million pounds year-over-year.

Eicker said the beef-on-dairy movement may prove to support the old adage of, “if it seems too good to be true, it probably is.” And he is fearful that the current inventory situation will prevent dairies from maximizing their ability to capitalize on currently rising milk prices, because they simply will not have the animals to do it.

“That short-term increase in calf revenue is dwarfed by the fact that they will be forced to keep their market cows many months longer,” he noted. Plus, with rising heifer values, there is real money to be made again raising and selling heifers. “What dairy would want $600 now instead of $1,600 in two years?”

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