Dairy Genetics

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.

Zoetis to Acquire Neogen’s Animal Genomics Business

Mon, 02 Mar 2026 13:12:11 GMT

Today, Neogen Corporation , an innovative leader in food safety solutions, announced it has entered into a definitive agreement to sell its global genomics business to Zoetis Inc. , the world’s leading animal health company, for $160 million, subject to customary closing adjustments.

Neogen’s planned divestiture, which had been previously announced, was part of the company’s portfolio review strategy to simplify the business and focus on core strategic markets.

“Neogen’s genomics business ( GeneSeek ) has been a pioneer in advanced DNA testing for livestock and has set a high standard for innovation across the livestock sector, with globally recognized solutions spanning genomic prediction, herd improvement and data integration,” says Tom Schultz, Neogen head of commercial global genomics."We’re excited to build on that foundation in our future with Zoetis and to continue advancing tools that strengthen animal health, performance and overall profitability. Customers can expect a thoughtful transition and continued excellent service,”

According to a Zoetis release , “This acquisition aligns directly with Zoetis’ strategy to drive future livestock innovation through genomics, reinforcing its commitment to livestock producers worldwide and advancing its precision animal health portfolio. By integrating Neogen’s genomic technologies and data solutions, Zoetis is expanding its capabilities to deliver predictive insights, individualized care and greater value to customers across major livestock and companion animal species.”

Neogen’s genomics business serves customers in more than 120 countries through its five laboratories in the U.S., Brazil, Australia, China and the United Kingdom, as well as an office location in Canada. The business leverages a comprehensive genotyping platform of fixed array and sequencing technologies, as well as software solutions that empower customers to make informed and data-driven decisions. The business is a leader in U.S. beef and dairy genomics , and its cutting-edge technologies enable highly accurate, scalable genetic testing and deeper insights into animal health, productivity and sustainability.

“This transaction is part of the company’s strategic portfolio review and allows the company to accelerate de-leveraging and improve profitability going forward,” says Mike Nassif, Neogen’s chief executive officer and president. “Furthermore, this deal allows us to focus in areas where the company has the most significant competitive advantage and further leverage our core capabilities in food and animal safety. We are committed to a smooth transition for customers, employees and other stakeholders, and believe the business is well positioned to thrive under Zoetis’ ownership.”

GeneSeek has been a pioneer in advanced DNA testing for livestock and companion animal industries, leveraging a global presence to deliver highly accurate, data-driven insights that contribute to improved animal performance and health, as well as profitability, in the beef, dairy and other industries. Through the flagship Igenity and GGP portfolio and rapid turnaround times, the business offers returns-focused genomic tools and globally recognized standards in genomic prediction to accelerate herd improvement and enable genomics trait screening. Supported by the Encompass platform for genomic data integration and strategic partnerships advancing DNA-backed traceability, GeneSeek is committed to continued innovation and scientific excellence.

“We’re excited to build on our innovative genomics portfolio offerings in our future with Zoetis and to continue advancing tools that strengthen overall animal health, performance, and profitability,” Schultz says. “At Zoetis, genomics becomes a core part of a company fully dedicated to animal health. Zoetis brings deep scientific capabilities, operational scale, and a long-term commitment to genetics and data.”

Jamie Brannan, Zoetis chief commercial officer, adds, “The addition of Neogen’s genomics business strengthens our commitment to advancing animal health through innovation, data and technology. As we continue to grow our leading innovative solutions in Precision Animal Health, this acquisition brings complementary capabilities that expand predictive insights and individualized care, enabling us to deliver added value to customers. Together, we are shaping the future of animal health, empowering customers with the tools they need to support healthier animals and sustainable livestock production globally.”

The transaction is expected to close by the end of the first half of the company’s 2027 fiscal year, subject to regulatory approval and customary closing conditions. The net proceeds from the transaction are expected to be used primarily for debt reduction. The Neogen genomics business generated approximately $90 million in sales during fiscal year 2025.

“At the time of the announcement, nothing will change,” Schultz explains. “Our customers’ contacts and ordering processes remain the same — products, services and support also remain the same. Customers can expect a thoughtful transition, continued service continuity, and future benefits from Zoetis’ focus in the business. Any changes will be communicated well in advance.”

Zoetis says it is committed to a seamless integration, supporting continuity for colleagues and customers, and building on Neogen’s legacy of innovation in genomics.

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.

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.

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.”

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.

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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Embryo Surrogacy – The Next Dairy Niche?

Thu, 12 Sep 2024 15:40:41 GMT

From composted manure and beef-cross calves to methane-powered electricity and renewable natural gas, dairies continue to explore paths to garner bonus revenue beyond the traditional cash crop of milk.

The latest idea may be another collaboration between dairy producers and their beef cattle brethren: embryo surrogacy. Or stated another way, renting out uteruses.

“Right now, there are so many more embryos sitting in tanks than sitting in cows,” declared show stock photographer J. Brad Hook of Humeston, Iowa, host of the “ Genuine JBH ” podcast. Hook lamented that in the beef cattle show stock world, breeders have made remarkable strides in genetic analysis and mating that consistently produce excellent offspring. But what has not kept up with the breakneck pace of genetic progress and embryo development is the recipients in which to put them.

Hook explained that the supply of embryos has far outstripped the availability of beef recipient animals, especially in today’s high-dollar-value beef industry. “Recip” cows currently are extremely expensive to purchase. Custom beef recipient herds are largely booked, and also have increased their prices considerably due to the value of the animals. Today, the average take-home cost of an embryo born to a beef recipient is $4,000-$5,000 per calf, not even counting the price of the embryos.

Enter the humble dairy cow. She has to have a calf every year anyway, and in many cases, she may not be a chosen dam to create a replacement heifer for the dairy. So why not put a beef embryo in her, with a guaranteed price over market value for the calf?

That’s exactly what Lynchburg, Ohio club calf breeder Jake Osborn is doing. Osborn and his son, Wyatt, are partnering with an 800-cow Ohio dairy to bring to life the overflowing supply of embryos that are sitting in their tanks and others’ across the country. Last year they started with 9 embryos that resulted in 6 live births. But next year Osborn Show Cattle plans to produce about 150 calves via surrogate dairy dams.

“The appealing part about this situation is that the dairy is able to synch up a large number of recips at the same time,” noted Osborn. “You can get a whole string of calves from the same mating, born within just a few days of each other.”

Osborn said the attention to breeding details and readiness of dairy dams also results in considerably higher conception rates at the dairy. “At my place, a 20-30% conception rate on embryos was pretty common, which is not real conducive to making money,” he shared. “Currently, we’re running 55-70% conception in the dairy cows, which is way better on IVF embryos than I’ll ever do at my house.”

And the calves themselves? Hook attested that when he viewed Osborn’s spring sale calf line-up this year, he couldn’t tell them apart from the dam-reared calves in terms of growth and conformation. Osborn noted that the quality of the calves was due largely to the efforts of an excellent caretaker at the dairy. Ultimately, he worked out an arrangement to pay her a bonus on the embryo calves based on their sale price.

Another benefit was the disposition of those show calves. Purchasing families were delighted to take home animals that were broke to lead and tame and ready to go. “You can buy one for your 10-year-old and not have to worry about them getting hurt,” shared Osborn. “They’re a lot different than a calf that has been at the side of a normal recip cow.”

For the dairy, the value lies in the premium price they are paid for the calves, which Osborn said is above the healthy $800-900-per-head price they are currently receiving for their own beef-cross calves. The dairy owns the embryo calves until weaning at 60-90 days, then sells them back to the embryo contractor.

In further collaboration with the dairy, Osborn also plans to put embryos into cows identified on the cull list. After dry-off at the dairy, they will be sold at a premium price over cull value and raise their embryo calf, plus a couple more grafted onto them.

Looking forward, Hook and Osborn noted even more related business opportunities, such as custom raisers who would take the embryo calves at birth and rear them specifically into show cattle. The ability of dairy cows to calve out beef embryos also may be an avenue for purebred beef breeders to create more offspring. Plus, it could help rebuild the commercial beef cattle herd in the U.S., which is currently at its smallest size in more than 70 years.

“Not everyone is going to be good at this,” Osborn stated. “It really takes a special dairy – someone who knows a lot about nutrition and management, and really cares about calves.”

Beef-on-Dairy: How to Make Successful Semen Selection Strategies

Wed, 28 Aug 2024 17:09:42 GMT

Today’s dairy farmers aren’t just bringing milk, cheese and butter to the table – they’re also bringing beef. And, it’s adding some serious value to their operations.

With week-old beef-on-dairy calves fetching nearly $1,000 in some parts of the country, prices are turning heads and calves are turning profits, pushing producers to prioritize their beef-on-dairy mating selections. And with crossbred calf prices through the roof, making the right beef semen selection has the potential to push those sky-high prices even higher.

Robert Weber, professor and department head for the Eastern Kansas Research and Extension Center at Kansas State University, highlights three considerations every dairy farmer should keep in mind before selecting semen for their beef-on-dairy program:

Understand Industry Dynamics – As market conditions and consumer demands evolve, producers should align their beef-on-dairy mating programs with current and anticipated market needs. This alignment can be achieved by partnering with genetics consultants, utilizing specialized mating decision tools, and staying informed on industry trends.

“In the past, there has been limited knowledge of beef-on-dairy pairing criteria,” Weber says. “Genetic companies saw the need for a better selection index to accommodate this production model. More research has been conducted to refine beef bull trait criteria, particularly for dairy cows, and create a beef-on-dairy sire directory and customized selection index.”

He recommends collaborating closely with your semen provider to understand what tools are available to make the most informed decisions possible.

Map It Out - Just like any breeding program, your beef-on-dairy mating decisions should align with ‘big-picture’ goals of your farm.

“Consider the specific breeding objectives of your operation,” Weber says. “Are the primary goals centered around maximizing milk production, ensuring high fertility rates or perhaps both? Dairy semen is the preferred option if the aim is to maintain or enhance dairy-specific traits such as milk yield and production of replacement females. On the other hand, if the focus is on enhancing growth rates, feed efficiency, improving carcass quality and aligning with market demands favoring beef characteristics, opting for beef semen is a more viable option.”

Evaluate Traits – When making mating decisions, producers will often turn their focus toward the traits certain sires possess. However, Weber says it’s imperative not to overlook the valuable contributions of the dam.

“Advancements in breeding practices have debunked the misconception that using beef semen adversely affects milk production,” he explains. “Producers no longer have to stick to the old rule of using beef semen only on their lowest performing cows. Instead, they can customize their breeding plans and choose beef traits and bulls/breeds that excel in those areas which complement Holstein and Jersey’s genetic potential for marbling and consistency.”

To optimize crossbred calves, producers should establish specific criteria for selecting dams before breeding a dairy animal with beef semen. Consider factors such as the number of calvings, genetic merit, production records, and genomic testing results. Sire traits to select for include frame size, muscling, ribeye area and calving ease. This approach ensures that only the most suitable dams and sires are chosen for crossbreeding, ultimately maximizing the value of their beef-on-dairy program.

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Survey: Beef-Cross Calves Need Better Implant, Breeding Strategies

Fri, 02 Aug 2024 21:22:26 GMT

What started out as somewhat of an experiment less than a decade ago has now become a standard of the U.S. cattle industry. All signs would indicate that the beef-dairy crossbred animal is here to stay.

Recognizing the unique characteristics and production channels of these calves, researchers at Iowa State University conducted a survey of producers involved in their rearing. Funded by the Iowa Beef Industry Council and Iowa Beef Checkoff, the study was conducted to:

(1) Learn about management practices employed by dairy producers and calf ranches who raise beef-cross calves; and

(2) Learn about challenges related to finishing beef-cross calves from the perspective of commercial feedlot operators.

On the calf-rearing side, responses were submitted by 11 producers who raise more than 21,000 dairy or beef-cross calves annually. Five were current dairy producers, while the rest were speciliazed calf raisers.

All but one of the 11 calf raisers had ongoing knowledge of colostrum feeding and/or tested incoming calves routinely for passive transfer of immunity. The single producer who did not have confirmed colostrum status purchased calves from auctions.

The calf raisers indicated a need for additional research on reducing liver abscesses; sire genetics and selection; starting calves to prevent sickness; weather impact on starting calves; nutrition plans; improving carcass cutout; impact of stress events; and prevention on treatment of mycoplasma.

On the feedlot side, 21 cattle feeders replied, most of whom had experience raising full-blood beef, dairy, and beef-cross calves.

Of particular interest was the disparity between the size of the animals when they entered the feedlot stage. The producers reported the average weight of beef calves entering the feeding stage was 613 pounds, compared to an average in-weight for beef-cross calves of 372 pounds.

The feeders’ experience also pointed to the superior carcass performance of beef-cross calves. They reported an average of 13% of beef-cross animals grading Prime, compared to an industry average of 7.54% reported in the most recent National Beef Quality Audit. They also reported an average of 22% of beef-cross calves produced Yield Grade 1, versus a 6.77% national average.

The ISU researchers noted a wide variation in implant strategies for beef-cross calves, which they suggested could use some fine-tuning. “In theory, there should be a different implant protocol for BXD compared to beef cattle due to differences in days on feed, marbling genetic merit, and traditional muscle size and shape,” they stated.

Feeders also expressed a desire for improved education regarding beef semen selection, particularly focused on choosing sires that promote feedlot performance and high-quality carcass finish. “Additional research is needed to select the ideal beef bulls based on growth, performance, and carcass merit without compromising calving ease,” the ISU researchers noted.

The study’s complete report can be accessed here .

Survey: Beef-Cross Calves Need Better Implant, Breeding Strategies

Wed, 03 Jul 2024 19:05:39 GMT

Sexten: Lessons From the Dairy Industry

Tue, 27 Feb 2024 13:57:52 GMT

You will be hard pressed to find a current beef publication that doesn’t reference beef on dairy calves somewhere in the copy as the number of dairy cows bred to elite beef producing bulls continues to grow. The ability to produce a steady and sufficient supply of elite dairy replacement heifers has been enabled by two technologies widely adopted in the dairy industry: genomic testing and sexed semen. The widescale use of these technologies offers a window into the future of the beef production system.

A recent article₁ in Frontiers from George Wiggans and Jose Carrillo at the Council on Dairy Cattle Breeding reviewed the impact of genomic testing in dairy cattle genetic improvement. This review and the associated changes in the dairy production model highlight the ability to change selection focus when we expand beyond simply using bulls as the source of genetic improvement.

Since 2011, the number of dairy cows evaluated using genetic testing has doubled every five years to exceed one million annually. Don’t miss that the use of genetic testing is doubling in COWS. Growth in the use among sires is flat, as less than 1% of sires used in dairy matings are not genetically tested. Since genetic testing for dairy sires is table stakes, this has enabled the reduction in the sire generation interval to the point where genetic improvement is occurring at the biological limit.

Knowing the individual genetic merit of the cow herd enables the strategic mating of tested cows to either produce dairy replacements or be mated to beef sires. With the advancement of sexed semen further specialization is enabled, as the by-product of targeted matings is virtually eliminated.

Beef producers are now competing with a dairy whose by-product is feeder calves. The characteristics of this by-product address three key challenges of the native beef supply chain: eliminating seasonality of supply, easily sourced in load lots and uniform management despite individual sorting early in life. While there is much attention to beef from dairy cows, the percentage of the beef supply chain originating from dairies hasn’t changed nearly as much as the genetic potential of the cattle themselves.

Imagine a production system where sire genetic improvement is occurring at the biological limit coupled with a cow herd that that turns over every four years. Despite dairy cows being productive for about half as long as a beef cow, genetic testing in dairy herds exceeds that of beef herds. The dairy model has moved their genetic focus from selecting replacements from a system to creating the replacements needed for their system.

The Net Merit score is an index used in the dairy industry to implement genetic selection of replacements. How would you weight the following areas if designing the net merit index: milk yield, milk components, health, longevity, reproduction, efficiency, and physical characteristics?

The article from the Council on Dairy Cattle breeding1 outlined the weighting of the current net merit index: milk components (48.3%), longevity (20.8%), efficiency (13.2%), reproduction (9.6%), health (4%), physical characteristics of feet and udder (3.8%) and finally milk yield (0.3%). Anyone else surprised the lowest category of emphasis is milk yield? Perhaps dairies have reached the limit on milk yield. A similar case could be made for weaning weight and milk production in the beef herd where we are limited more by the environment than genetic potential for productivity.

The emphasis on milk components suggests making progress enhancing the composition of milk is more important than total yield. From a beef production perspective carcass merit would be similar to component improvement. There are few beef selection indexes where the composition of carcass gain is more important than the gain itself. Cattle feeders recently proved with cheap feed and days on feed beef carcasses weights can be increased to record levels, perhaps it’s time to change focus to ribeye area and marbling.

The ability to select for longevity, efficiency, and reproduction is not limited to dairy cows. Beef producers have genomic tools available today to make genetic progress in all these areas, yet few operations have adopted genomic testing for any traits. In an industry where feed costs make up the greatest percentage of operating costs and reproduction is the most important production trait; we should not continue to ignore the tools available to make progress in these areas. Beef producers can select replacements designed for our production systems before ever turning out a bull.

Some suggest the dairy model doesn’t apply to beef systems due to the diverse environment. Every cow herd has environmental constraints that limit stocking rate comparable to the limited number of parlor spots in a dairy. If you are trying to optimize the production of beef per acre is a replacement selection model where keeping the biggest and oldest heifer calves with little knowledge of their genetic merit or variation within those females the best way to optimize the land resource?

Beef-on-Dairy: Why Feedlots Crave This Important Information

Thu, 01 Feb 2024 14:37:24 GMT

Within the last five years, the number of purebred dairy animals that have passed through feedlots has shrunk drastically. What used to be a purebred Holstein steer has now become a beef-on-dairy cross, and it’s estimated almost 23% of the total number of fed steers and heifers within the U.S. are actually coming from dairies.

According to Dr. Aimee Halfa, a beef innovation lead at Cargill, there are several reasons why these beef-on-dairy animals have seen explosive growth. One of the biggest spurs from the severe drought that has blanketed most of the Midwest, which in turn has forced herd reductions amongst the beef industry.

With the conventional beef herd currently in a liquidation phase, feeder calf prices have skyrocketed, triggering a supply and demand issue between the beef industry and feedlots. Dairy producers, however, have helped fill the pipeline by producing beef-on-dairy calves, and have turned a hefty profit in doing so.

Feedlots and Consumers Crave Knowledge

Not only have beef-on-dairy animals proven their worth within the beef supply chain system, they’ve also won over consumers with their overall consistency.

“The beef industry has always been segmented and variable,” Halfa told the audience during the Dairy Strong conference held in Green Bay, Wis. “We have cattle that originate from variable genetics, different production systems and different environments. All of this is feeding into a system where our customers and consumers want to be able to purchase a steak, hamburger or whatever kind of beef product they want and have the same eating experience every single time. Additionally, they want to know exactly how that animal was raised. This is where dairy can contribute nicely to our system.”

According to Halfa, beef-on-dairy cross animals work well in the beef industry because they are so uniform. And because of this, dairy farmers have the opportunity to contribute quality beef to the pipeline while also turning a sizeable profit. To do so, however, requires producers and feedlots to breed and feed these animals efficiently. And as beef-on-dairy animals within the feedlot system continue to rise, feedlots are craving two key pieces of information to help ensure these crossbred cattle thrive.

Health Records

No matter what age beef-on-dairy animals are sold, buyers want to see that the animals they are purchasing were well cared for. In particular, feedlots are looking for beef-on-dairy animals who were given colostrum, vaccinated and who have been exposed to a minimum amount of stress.

“One thing we’ve known for a while in the beef cattle industry is that disease, specifically respiratory disease, has a big impact on animal performance and carcass quality,” Halfa says. “Knowing when and what vaccinations or antibiotics were used along with having information on any health events is really valuable data to pass along.”

By knowing the animal’s health status before it enters, feedlots can make more informed treatment decisions and better understand a specific animal’s performance metrics.

Nutrition Records

When a beef-on-dairy calf makes its way to the feedlot, the transition can be a stressful one. Just the dietary changes alone can be a challenge, Halfa notes.

“One area I see some operations struggle with is the transition from a calf grain to a feedlot TMR,” she says. “This is a really challenging point in these animals lives and when it’s not done correctly, you can really miss out on some good performance during a time when you should be capturing great feed efficiency and gain.”

To help make the transition a bit smoother, Halfa recommends dairy producers provide feedlots with the nutritional information of beef-on-dairy calves sold after weaning.

“Providing feedlots with previous diet information along with when the animal was weaned are two excellent pieces of data to pass along,” Halfa says. “Bonus points should be given to producers who track an animal’s average daily gain. Communicating that captured level of information can be really helpful for the next person feeding those animals.”

Additional Areas to Focus On

Besides providing health and nutritional information, Halfa says there are several other ways dairy producers can work to keep the buyers of their beef-on-dairy animals happy.

Communication - Regardless of who you are selling your animals to, communication and a well-established relationship will always be essential.

“Ask questions, get feedback and make improvements,” Halfa says. “People who are feeding or buying your cattle love to get information on the animals they are purchasing, and its valuable information dairy producers can provide. Prioritizing communication is an excellent way to help secure future business relations.”

Traceability – Knowing exactly how and where an animal was raised can be a big-ticket advantage for feedlots looking to buy animals who are predictable and consistent. According to Halfa, this is an area where dairy producers excel.

“When it comes to traceability, the beef industry has a lot of hurdles. The dairy industry, however, has a great opportunity to provide a traceable beef product much easier and quicker,” she says.

Dairy farmers are no strangers to providing quick and accurate information. In turn, not only does this help supply buyers with valuable information, but it also opens doors of opportunity to increase market access and build up your farm’s reputation of producing high-quality animals.

Metrics = Money

Whether you are selling your beef-on-dairy animals to a private buyer or a commercial feedlot, knowing the specific data points these buyers are looking for can help bring additional value to the animals you bring to market. Failing to pass this information along could be cause you to leave extra dollars on the table.

“Beef-on-dairy animals have the potential to add quality cattle to our fed beef supply,” Halfa says. “If you are going to look at breeding dairy animals to beef, it’s important to understand the metrics behind how these animals should be handled and fed within feedlots in order to sell them for a healthy alternative income stream.”

For more on beef-on-dairy, read:

How to Increase the Marketability of Beef-on-Dairy Calves

Tue, 16 Jan 2024 14:00:00 GMT

Many farms have become more innovative over the past few years by implementing beef genetics into their breeding programs. There have been two main advantages to adopting beef on dairy: management of replacement numbers and increased market value of the calves leaving the farm. A Wisconsin study found that 65% of the farmers surveyed sell their dairy beef crosses within the first week of birth, while 12.5% raised them to finish. No matter when beef cross calves are being marketed, steps can be taken to make them more marketable.

Don’t Skip Day One of Calf Care

The calves are not staying on the farm, but they should be treated like any other replacement animal. Dip navels with 7% iodine, administer proper vaccinations, and feed high-quality colostrum. Colostrum should be greater than 50 IgG to be considered high quality. Some farms have concerns about using their high quality colostrum on calves that may leave the farm. Many farms have had luck keeping their colostrum stocked by saving 50 to 70 lgG colostrum for market calves and greater than 70 for replacement heifers. Just like with replacement heifers, ensure colostrum is fed within a couple of hours of birth.

Track Calf Growth

For those marketing weaned calves, track average daily gain. Calves should have an average daily gain of approximately 1.5 lbs per day or double their birth weight by 8 weeks of age. Tracking weights weekly by using a weigh tape or portable scale will help determine whether these goals will be met. Collecting calf weights will also help determine when to vaccinate. Respiratory vaccinations should be given between 400 and 500 pounds. Ensure vaccinations are given at least two weeks before being transported from the farm.

Keep Health Records

Health records are extremely important when selling calves to a private buyer or through a contract. No matter what age the calves are marketed, buyers want to see that the calves are well cared for. Keep track of and provide vaccination and processing records. Signs of navel infections and respiratory disease will decrease the calf’s value. By collecting passive transfer for each calf, the farm can prove that the calves were given high-quality colostrum to set them up for future success. Being able to prove that providing the buyer with healthy calves by providing health records and sound calves will make your calves more marketable.

For more on beef-on-dairy, read:

Dairy and Beef: A Merger of Many Merits

Fri, 15 Dec 2023 00:57:29 GMT

Beef-on-dairy breeding is a phenomenon that has boomed at a breathtaking pace in the United States, according to Dr. Zeb Gray, Technical Feedlot Specialist for Diamond V.

Gray, who has deep roots in beef production, from the cow-calf phase through post-harvest meat science, said the practice is changing the landscape of the U.S. beef industry – probably permanently.

Data from the National Association of Animal Breeders indicates beef genetics are being swapped for dairy semen at an impressive clip. From 2018-2022, beef semen sales in the United States rose by about 5 million doses, while sales of dairy semen dropped by nearly an identical number.

All the while, the size of the U.S. dairy cow herd remained steady at about 9 million head – an indication that the shift is due largely to the growing adoption of beef-on-dairy breeding.

Gray said that although there have been growing pains, the beef cross calves have been well received by both feedlots and packers. “Feedlots are like hotels,” he explained. “The only way they work financially is if their pens are full. The same is true for packers, whose profitability depends on their maximization of throughput every day.”

He noted the steady, year-round availability of beef cross calves is a game-changer in terms of animal procurement. “It’s always been a challenge for feedyards to keep full pens of consistent cattle year-around, and particularly now with our shrinking native beef herd,” stated Gray. “Calves born on dairies not only offer that consistency, but they are simply age- and source-verified and can provide a complete history of every animal, for which consumers are increasingly clamoring.”

Feedlots, packers, and branded beef programs see working with large dairies as an opportunity to build a reliable source of calves that check all the boxes. It proves to be much easier to work with a handful of large dairies to secure these calves in just a few transactions, versus dealing with a couple hundred ranches and having to buy in much smaller lots.

But for all of its merits, this rapidly evolving production path is not without some speed bumps. The new demand to procure beef cross calves has led to a common occurrence where freshly weaned, very young cattle weighing as little as 250 pounds enter commercial feedyards.

“When it comes to rumen development, there’s no replacement for time,” Gray stated. “Those calves are at a considerable disadvantage compared to their full-blood beef counterparts who are on a partial milk diet for up to 6 months and learn to eat forage gradually alongside their mothers.” He added feedstuff availability in cattle-feeding country and feedyard logistics are often not conducive to including optimal levels of roughage in young calves’ diets.

So, what can dairies and calf ranches do to boost the health and performance of beef cross calves before they graduate to the feedlot? Gray offered 3 suggestions:

Prioritize critical colostrum – Even if beef cross calves spend less than a day at their dairy of origin, nothing can replace the myriad benefits of colostrum that will carry through their entire productive lives. Setting every calf up for success with colostrum delivery within the first 4 hours of birth is the single most important measure in ensuring calf welfare and preventing morbidity and mortality.
Focus on nutrition -- There is a growing body of research-based evidence that feeding feedlot-bound calves higher volumes (example: 6 quarts per day) of higher-protein milk replacer (example: 25-27%) results in better-gaining, more robust calves at weaning and beyond. Work with a nutritionist who can help develop both liquid and solid ration formulations, as well as advise inclusion of proven feed additives to support calf health.
Consider retained ownership – Owning beef cross calves longer – possibly all the way to market – may help dairies expand profit centers beyond milk production, and reap the benefits of investments like feeding calves more nutrient-dense – but also more costly – preweaning rations. It also could allow for a potential backgrounding phase that might help calves transition more smoothly into the feedyard at higher ages and weights.

Gray said the meteoric growth of beef-on-dairy breeding has led to a lag in research that could eventually drive best practices for raising these unique animals. Namely, he said more work needs to be done to discover solutions to the critical issue of liver abscesses in beef cross cattle, along with better-defined nutritional and management approaches to optimize their health and performance.

“The dairy industry has driven this fundamental change thanks to precise reproductive strategies based on genomics, breeding efficiency, and sexed semen. Without them, we wouldn’t have these new opportunities on the beef side,” Gray declared. “I think there is a lot we can continue to learn from each other.”

As Dairy Semen Sales Drop, Beef-on-Dairy Continues to Rise

Thu, 06 Apr 2023 21:44:59 GMT

The U.S. bovine semen industry reports a decline of 5% in total unit sales, reaching 69 million total units reported for all categories combined. As reported by the National Association of Animal Breeders (NAAB), this represents a 3.4 million unit decrease from 2021.

“After successfully managing two years of disruptions to the supply chain and public health challenges, the impact of the global economic downturn has reached the genetics industry resulting in a decline in total dairy and beef units sold,” Jay Weiker, president of NAAB says.

Breaking this down further:

Total dairy unit sales for domestic and export were nearly the same as in 2021 at 49.4 million units.
Beef sales experienced a significant decline of 15% representing 3.3 million fewer units sold.
Beef-on-dairy semen sales increased by around 718k units both in the U.S. and for export.
Beef-on-beef sales saw a decline of 4 million units.

NAAB says that the cost of raising a heifer to the age of first calving has also increased significantly, so a calculated number of replacement heifers are produced to meet expected future needs and beef semen is used on the remainder of the herd.

Lyle Kruse, Vice President of U.S. Market Development for Select Sires, says these numbers are a combination of several factors that include:

Producers are breeding more to dairy animals to beef
Breeding fewer heifers
Having less inventory of cattle (cows/heifers) on hand
Using more sexed semen to target replacement needs, along with moderate but continued improvements in CR on sexed semen
Improvements in reproductive efficiency in both cows and heifers

“With tight margins and escalating costs of production, most of the dairy owners I work with a continually pushing to increase how many beef-on-dairy calves they make – the income from these calves is definitely a motivator for extra cash flow,” Kruse shares.

Producer Perspective

Carlson Dairy located in Pennock, Minn., culling determinations have changed, especially as they have strategically dialed into their breeding program.

“We used to cull a lot more, but that has really changed,” one of the owners, Carl Carlson shares.

Before cows were culled for mastitis or low production and now cows are only leaving for low production. Carlson’s culling rate hovers between 31-32%.

“We want to keep older lactation cows in the herd longer because obviously we’re getting more milk out of them.”

Understanding their ultimate goals, the Carlson’s began utilizing beef-on-dairy a couple of years ago on both heifers and mature cows.

“Right away we went with using beef, as well as some conventional semen,” Carlson shares. “And now we’re all strictly using either beef or sexed.”

The Carlson family milks 2,000 cows and basically raises all replacements on the home site, except 15% that are raised by a nearby family member. In addition, they farm 2,500 acres, of which they raise 1,000 acres of alfalfa and 1,500 acres of corn. All of which goes back to helping the dairy to feed cattle.

Before breeding to beef, Carlson was raising excess heifers that they then would later sell as bred heifers, but that changed when the market changed. Rising inflation costs swallowed up the costs of raising heifers and selling bred heifers later didn’t always guarantee a returned profit.

To read more about Beef on Dairy:

Beef-on-Dairy Continues to See Major Growth

Fri, 20 Jan 2023 16:02:11 GMT

With the demand for beef up, more dairy producers are crossbreeding poor genetic or less productive cows with beef semen. This isn’t something new, as producers have increased beef genetics usage for various reasons. But over the past few years, dairy semen sales have idled while domestic beef sales have exploded.

According to Larry Corah, professor emeritus with Kansas State University, dramatic change has unfolded on the beef-on-dairy world in the last five years. From 2017-2022, the beef-on-dairy cross calves have replaced 70% of the Holstein steers in the fed cattle harvest mix.

“The main reason given is the dramatic increase in use of sexed semen by dairy producers,” he says.

Corah says another big reason was due to three of the four major packers quit harvesting Holstein steers, devaluing the Holstein steer market value.

Holstein bull calves sell for little compared to beef-on-dairy cross calves selling for four to six times more, up to $250, making this a new profit center for many dairies.

“At feeder weight of about 500 to 600 lbs., the beef-on-dairy cross calf is about $12-15/cwt below a beef calf of the same weight, but the Holstein steer is $40/cwt below, according to data from Superior Livestock and Kansas State,” Corah says. “Economics drive change and it is easy to see why the use of beef genetics has been adopted so widely and rapidly by dairy operations.”

A Packer Perspective

Kim Herinckx is the vice president of food safety and quality for One World Beef, the largest scale slaughter processing facility in southern California. They prominently handle dairy or dairy influenced cattle and specialize in grain-fed Holsteins, Wagyu and beef-on-dairy dairy cross cattle. They are the second-largest exporter to Japan, Chile and China.

Many feedlots that funnel into One World Beef are located within 80 miles, although some cattle come from Colorado, Kansas and Texas. Regardless of where the cattle originate, Herinckx says the communication between the packer and feedlot is constant, with daily communication and frequent site visits to ensure quality and data points.

“The problem we’re running into is that some traditional feedlots get black cross animals in, and they are feeding them like a traditional black animal, and it simply doesn’t work,” she says.

During meetings with the rendering division, Herinckx says one comment that has stuck with her, and she believes is a takeaway for every producer to remember is, “If you want value out of your byproducts, you have to stop treating them like a byproduct.”

Creating a syncretistic relationship with the dairy producer can help develop a brand program, Herinckx notes, and helps it go from a byproduct to a go-to product. She says this is a fundamental shift and that dairy has always been the winner when it comes to addressing consumers’ demands.

Beef X Dairy: Vision & Reality

Thu, 10 Nov 2022 19:42:58 GMT

Dairy producers are rapidly embracing the concept of using beef semen to freshen their cows, and the resulting crossbred calves are proving both a valuable opportunity and a challenge for the U.S. beef industry.

Beef-on-dairy crosses as they are called, deliver on the vision that breed complementarity produces better feedlot performance and improved carcass quality while enhancing industry sustainability initiatives. Such gains are always welcome, but the growth of the beef-on-dairy sector could prove crucial going forward as the beef industry suffers the impact of a second mega-drought over the past decade.

Industry analysts are quick to acknowledge no hard data exists on the number of beef-on-dairy cattle that are part of today’s beef supply, but they estimate there are about three million head.

“I believe the number of beef-on-dairy crosses in today’s market exceeds three million head,” says Dale Woerner, animal and food science professor at Texas Tech University. “And the number will continue to grow, especially as the beef cow inventory shrinks.”

Woerner and his colleagues at Texas Tech have collaborated with Cargill over the past three years on the Dairy Beef Accelerator, a program to better understand the opportunities of beef-on-dairy. Researchers at Texas Tech have documented several benefits for producers, packers, consumers and the environment. Some highlights include:

Compared to purebred dairy calves, beef-on-dairy calves can provide higher-quality beef products without impacting current milk production efficiencies.
Beef-on-dairy calves show greater feed efficiency (compared to purebred dairy calves), which lowers the environmental footprint associated with their production.
Increased feed efficiency significantly reduces greenhouse gas (GHG) emissions.
The practice benefits meat quality. Beef-on-dairy delivers increased volumes of higher-grading beef carcasses, providing feedyard operators more access to value-based marketing opportunities as well as pass-back — beef-on-dairy calves are more valuable in the marketplace for dairies than purebred dairy calves.

“The beef and dairy industries have the opportunity to work together to produce even more efficient beef animals,” Woerner says. “Crossbreeding dairy cows to complementary beef sires can advance sustainability by reducing the environmental impact and improving profitability.”

A recent review of beef-on-dairy carcasses and meat characteristics in 2021 found that beef from these crossbreds compares favorably with traditional beef.

“Dairy-influenced beef has some advantages,” Woerner says. “Primarily tenderness, but also some flavor advantages, too. There’s improved overall palatability or eating qualities in the dairy/beef model over conventional beef.” Woerner says the beef-on-dairy carcasses will produce more flavor associated with marbling due to dairy-type animals typically producing high marbling scores.

While beef-on-dairy programs offer improved utilization of resources for producers and provides carcasses that better fit packer needs, the evolving sector brings some challenges to an industry not quite ready for the influx.

No one understands that better than Ty Lawrence, animal science professor at West Texas A&M, and director of the Beef Carcass Research Center.

“I receive calls from representatives of the packing industry weekly regarding issues they are seeing with these cattle,” Lawrence says. “In general terms, beef-on-dairy provides the beef industry some good, some bad and some very ugly results.”

The Good

Through in-plant research and observations, Lawrence and his team at BCRC say beef-on-dairy is working, in that the positive characteristics far out number the bad and the ugly.

For instance, traceability is much higher for beef-on-dairy crosses than cattle from the traditional beef sector, making those cattle easily eligible for source and age verification branded programs and for export. And because dairies traditionally do not brand their cattle, the hides are more valuable. Hide values, however, are significantly lower than a decade ago as leather has been replaced by polyester and nylon for many uses.

Observations by BCRC also confirm beef-on-dairy delivers on the carcass improvement promise. One improvement is the Angus stamp, which Lawrence says is independent of Certified Angus Beef. Because many beef-on-dairy calves are Angus-sired, trim from those carcasses can be sold as Angus trim for hot dogs and ground beef that are branded as Angus.

Better dressed yield is another improvement. BCRC data found straight dairy carcass produces a dressed yield of 60%, beef-on-dairy at 62.8%, and traditional beef carcasses at 65%. For ribeyes the dairy average is 13.3", the beef-on-dairy at 14.1" and the beef cattle average is 14.8". The dairy crosses also improve muscle conformation and muscle-to-bone ratio over the straight-bred dairy calves.

Marbling scores can represent an increase in value for some cattle feeders. That’s because while overall marbling scores are “on par” with straight dairy cattle, the crosses produce more CAB carcasses.

“Historically, one-third of Prime carcasses came from dairy,” Lawrence says. “So dairy genetics produce marbling, but when we cross them with Angus, we have an opportunity for those carcasses to qualify for CAB.”

A majority of the Angus-sired dairy steers will qualify for CAB on a live basis, and “80% to 95% of the beef-on-dairy crosses will grade Choice or better, with 25% to 45% reaching CAB,” Lawrence says.

The Bad

“Some of these dairy animals, regardless of whether they are a cross or a straight bred, arrive at harvest with an intact testicle,” Lawrence says. “Most are banded in the first week or so at a rate that I have yet to document, one testicle is in the sack and is removed, while one testicle is in the belly and that animal does not know he’s not supposed to be a bull.”

Such mistakes lead to an increased rate of “bulling” and increased rates of dark cutters. Dairy crosses will also produce more subcutaneous fat than the straightbred dairy animal, necessitating additional fabrication of fat trim by the packer.

“A Holstein or a Jersey will have 9 lb. of muscle for every pound of fabrication trim,” Lawrence says. “The average beef animal has 5 lb. of muscle for every pound of fabrication fat trim and the crosses will be similar.”

BCRC also found only 20% of the beef-on-dairy crosses displayed healthy, normal looking lungs. “That means 80% had something going on,” Lawrence says.

A significant concern for packers with beef-on-dairy crosses is the possibility of lactating heifers, which is more common among the Jersey crosses. Milk that spills on a carcass in a packing plant must be treated the same as fecal matter, meaning that it can’t be washed off - it has to be trimmed off.

The Very Ugly

In short, liver abscesses. Across the beef industry liver abscesses are a significant concern, a defect Lawrence says results in a $409 million industry loss over the 27.3 million animals harvested last year.

Compared with standard beef cattle and traditional dairy cattle, however, the beef-on-dairy crosses “stick out as a problem,” Lawrence says. The beef-on-dairy crosses saw 68% of livers condemned due to abscesses in observations by BCRC.

Last year the BCRC examined 271,436 carcasses, finding live abscesses in 26% of beef steers, 21% of beef heifers, 20% of Mexican cattle, 29% of Holsteins and the eye-popping 68% of beef-on-dairy. The liver itself is only worth $8, but the increasing severity of the abscesses can result in the loss of other salable meat products such as skirt steaks. Lawrence says liver abscesses, because they are active infections, reduce the animal’s feed conversion, reduce carcass weights, reduce marbling scores and decrease ribeye area.

“That’s a lot of growth negatives that come with those more severe liver abscesses,” Lawrence says. “This is a problem, and we as an industry have got to fix it.”

The Secret to Raising Dairy Beef Profitably

Thu, 03 Feb 2022 19:03:11 GMT

The secret to raising high quality dairy beef at a profit is really no secret at all: It just requires top management throughout the steer’s life cycle and consistent forward contracting to mitigate market risk.

Dairy beef now makes up about 20% of the fed cattle market. That’s up almost four-fold in less than a decade, says Tara Felix, an Extension beef specialist with Pennsylvania State University. There’s a couple of reason for that: 1) Veal consumption has plummeted in the last 50 years. Male dairy calves no longer used for veal had to go somewhere, and that somewhere was the feedlot. 2) A major drought four years ago meant far fewer “native” cattle were being raised, which meant Holstein steers made a larger and larger percentage of the fed cattle market.

Pennsylvania farmers are looking to capitalize on these trends. But the stigma against Holstein steers is they have poor feed:gain ratios, take too long to grow and don’t grade as well native cattle. Some or all of that can be true if they’re mismanaged, says Felix. But her two years of feeding trials with Holsteins, and a third on-going, suggests dairy steers can be a profitable enterprise, she says.

One of the first lessons Felix tries to teach newbie dairy beef feeders is that cattle raised for beef need grain, not forage. “I discourage my producers from thinking that forage is their cheapest diet,” she says. “You don’t want to finish these cattle at 24 or 25 months. We want them on grain early to encourage lean tissue growth rather than bone and frame growth.”

It’s also critical that the same care given to dairy heifer calves be given to steers fed for dairy beef. “We need the same care with steers as with heifers, meaning high-quality colostrum is given at birth,” she says. And she encourages early grain feeding—as early as day 3—to encourage rumen development. Once weaned, steer calves can be comingled in the feedlot.

In her first year’s trial, 44 Holstein steers from a single source were placed on feed April 1 averaging 546 lb at 9 months. These calves had received a Ralgro implant two months earlier, and were already consuming 10 lb of grain/head. They were transitioned to a diet of corn, silage, distillers dried grain with solubles (DDGS) and minerals. Over the 209-day feeding period, they consumed roughly 20 lb of corn and 4 lb of DDGS per head daily.

They were again implanted 28 days after arrival with Encore, a mild, long-duration implant labeled for up to 400 days. “However, we also chose to re-implant these calves again with a terminal implant 133 days later (Component TE-S),” says Felix. That was done to sustain average daily gains through 209 days.

It worked. “As a group, the calves gained 3.96 lb/day (without shrink) for the entire duration of the demonstration,” she says. These gains led to a feed-to-gain conversion ratio of 7:1. The cattle averaged 1,343 lb +/- 130 lb at finish and carcasses ranged from 677 to 861 lb. All cattle were USDA Yield Grade 1 to 3. Rib eye areas averaged 12.3 square inches for the entire group.

The cost per day to feed, implant and house the steers were $2.95/steer. “Because the cattle were bought by JBS when the market was on an upswing at $1.50/lb and sold on a downswing at 97¢/lb, the 44 steers on this demonstration did lose approximately $188/head,” says Felix. “However, had these calves been contracted in April (when they were purchased) at $1.11, they would have broken even…. These calves out-performed our expectations, but they could not out-perform the markets,” she says.

In the second year of trial, calves were split into two groups upon feedlot entry, with half the calves receiving two implants (Component E-s on Day O followed by Component TE-S on day 116) while the other half received none. Steers receiving implants gained a half pound more per day than those which did not. Because the steers were housed in the same pen, feed intakes for each of the two groups could not be measured.

The steers that received implants finished at an average of 1,371 lb +/- 144 lb while the steers that did not receive implants finished out weighing 1,282 lb +/- 79 lb. The steers receiving the implants graded lower, with one grading prime, 10 choice, 7 select and 2 standard. Those that didn’t receive implants had 1 grade prime, 14 choice, 4 select and none standard.

Felix notes that cattle treated with implants were given them on Day 0 of feedlot entry. “In an ideal setting, steers would be brought up to full grain intake to ensure quality grade was not affected,” she says. Still, assuming similar feed conversion, the implanted steers netted $60 more per head then their non-implanted pen mates.

Felix says she learned a couple of things from the trials. First, if producers aren’t using implants, they may be leaving dollars in the feedlot by not doing so. “The use of implants is critical for Holsteins to get their ribeyes to look more like beef ribeyes,” she says. “And you need the final implant because you need that final push for Holstein steers to finish.

“By coupling excellent nutrition with current technologies, producing beef with Holsteins can be a profitable enterprise,” Felix concludes.

Beef-on-Dairy Boosts Livestock Sustainability

Fri, 23 Jul 2021 18:57:20 GMT

Cargill is collaborating with beef industry partners seeking environmental benefits to dairy-beef crossbreeding, a practice known in the industry as ‘beef-on-dairy.’ The Dairy Beef Accelerator is a three-year program to advance research and support beef and dairy producers in better understanding the opportunities of beef-on-dairy.

The producer-led practice has the potential to help the North American beef and dairy industries advance efficiencies of the supply chain and address climate change, while continuing to provide consumers with high-quality protein.

The sustainability impact of beef on dairy is promising, according to research conducted by Texas Tech University, and also provides benefits to both beef and dairy producers. Initial research, for instance, indicates:

Compared to purebred dairy calves, ‘beef on dairy’ calves can provide higher-quality beef products without impacting current milk production efficiencies.
‘Beef-on-dairy’ calves show greater feed efficiency (compared to purebred dairy calves), which lowers the environmental footprint associated with their production.
Increased feed efficiency significantly reduces greenhouse gas (GHG) emissions.
The practice benefits meat quality. ‘Beef-on-dairy’ delivers increased volumes of higher-grading beef carcasses, providing feedyard operators more access to value-based marketing opportunities as well as pass-back — beef-on-dairy calves are more valuable in the marketplace for dairies than purebred dairy calves

“Producers are at the forefront of leading the industry as whole, advancing both the efficiency and resilience of the food system. The beef and dairy industries have the opportunity to work together to produce even more efficient beef animals. Crossbreeding dairy cows to complementary beef sires can advance sustainability by reducing the environmental impact and improving profitability,” says Dale Woerner, Ph.D., Texas Tech University.

Over the coming years, the Dairy Beef Accelerator will provide resources to help interested beef and dairy producers begin their journey to ‘beef-on-dairy,’ as well as create opportunities for peer-to-peer learning and sharing of experiences with the practice.

The initiative ladders up to Cargill’s BeefUp Sustainability initiative, a commitment to achieve 30% greenhouse gas (GHG) intensity reduction across our North American beef supply chain by 2030.

USDA Oversight of Gene-Edited Livestock: A Seismic Shift for Agriculture

Mon, 21 Dec 2020 21:01:23 GMT

USDA announced its intention on Monday to have primary oversight over gene-edited livestock. Secretary of Agriculture Sonny Perdue said this would be a significant step in modernizing regulations of agricultural animals modified or produced by genetic engineering.

“This would be a seismic shift for agriculture,” Greg Ibach, USDA undersecretary for marketing and regulatory programs, told AgriTalk’s host Chip Flory on Monday. “This provides an opportunity for U.S. animal agriculture to catch up with our competitors worldwide, since Canada, Argentina, Brazil and China all have paths forward for animal biotechnology that improve animal health and animal welfare and we do not. This will help our producers be able to use less antibiotics, treat fewer sick animals, and be able to eliminate traits that like horns that cause animal stress in the production cycle.”

Last year, President Trump ordered federal agencies to streamline the approval process for biotechnology products used in farming. Secretary Perdue announced that USDA will move forward with an Advanced Notice of Proposed Rulemaking (ANPR) to solicit public input and feedback on a contemplated regulatory framework that would modernize our system into a scientifically-sound, risk-based, and predictable process that facilitates the development and use of these technologies for U.S. farmers and ranchers under USDA’s authorities.

“Earlier this year we moved forward with the secure rule which paved the way for the first update for plant biotechnology regulation in 30 years. We’ve continued to work and using APHIS’ animal health authorities and FSIS’ food safety authorities, we now have a proposal that we would like to take comments on where we would use those authorities to be able to provide a safe, seamless, predictable, science-based way forward to approve animal biotechnology trade,” Ibach explained.

The USDA’s Animal and Plant Health Inspection Service (APHIS) already has a review process in place for gene editing in plants, which can serve as a model for livestock.

“FDA has taken a look at the food animal biotechnology trade and has attempted to regulate them under their drug authority,” Ibach said. “As we know, these don’t represent drugs, they are alternations that enhance health, enhance animal welfare – traits like the hornless Holstein cow that was developed by Alison Van Eenennaam. Working with FDA to identify a path forward using our animal health and food safety regulatory authority for food animals is progress.”

FDA would still maintain authority over animals that have biotechnology traits that allow for biomedical or pharmaceutical uses, he added.

“It seems like common sense to have this at USDA rather than FDA. But that’s from a farm boy’s perspective,” Flory said.

So, how do you explain this to a consumer?

“Each and every day and for the past 30 years, USDA has regulated plant biotechnology and we’ve identified traits and advances in plants that have improved the availability of food for consumers across the world and lessened the amount of herbicides and pesticides used to produce crops,” Ibach said. “And we’ve done that successfully without any adverse side effects.”

USDA plans to use the same food safety and animal health statutes where they have authority to regulate animals and apply them to animal biotechnology.

A Quantum Leap Forward
The U.S. has long been a leader in livestock genetics. Unfortunately, without a clear path forward, researchers are going to Canada, Brazil, Argentina and China to be able to commercialize these technologies because we do not have a clear path forward in the U.S., Ibach said.

“This will help us be able to put American farmers and ranchers first – put them in the driver’s seat – if we can develop a predictable regulatory authority that will give them access to these traits and not their foreign competitors,” Ibach added.

Without this change, it will become continually harder for the U.S. to compete. Moving oversight to USDA will make the process better to advance technology to develop immunities that would reduce the use of antibiotics, develop traits that would ensure continued humane treatment and maybe even enhance humane treatment on our farms, and decrease animal suffering and all those things would be good for consumers, he said.

The Federal Register will publish this posting on Dec. 28, beginning a 60-day comment period. Ibach encouraged all interested parties to give input about what they would like to see and what the advantages they see to USDA moving forward with a rulemaking and what factors would be important in a proposed rule from USDA.

“We think this is something that is very good for agriculture, and that it’s not administration-driven. It will be just as good for agriculture today as it will be in 3060 or 360 days from today. We believe that we’ll see a strong response from agriculture and animal agriculture especially. We anticipate that the comments that we will receive will be used by the next administration as they contemplate moving forward with a rule,” Ibach said.

More from Farm Journal:

Trade, ASF Prevention, Proposition 12 Top NPPC’s 2021 Priorities

NPPC Campaign Broadens Awareness of Gene Editing’s Promise

Ag Needs White House Support on Gene-Edited Livestock Oversight

Dairy Genetics

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

China Closes Doors, Global Markets Evolve

A Down Year for Dairy

Beef Semen Sees a Bump

Beef-on-Dairy Genetics Hold Steady

Adaptive Trends and Future Opportunities

Zoetis to Acquire Neogen’s Animal Genomics Business

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

Breeding With the Beef End in Mind

From ‘Black Holsteins’ to Beef-Calf Performance

Performance Trends from the Packer’s Rail

Processing Challenges Inside the Plant

Growing and Permanent Force

Why Fiber Quality Matters More for Beef-on-Dairy

Different Genetics, Different Requirements

Why Low-Quality Fiber Doesn’t Cut It

Is Cheap Roughage Costing You Gain?

Quality Over Quantity

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

Can Beef-on-Dairy Help Fill Feedlot Pens?

What Impact is it Having on Packers?

The Other Side of a Hot Market

The New Age of Beef-on-Dairy is Here

From Skepticism To Standard Practice

What To Consider

Begin With The End In Mind

Feedlots Crave Consistency

Predictability Built on Relationships and Data

A Defining Shift

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

How Beef and Dairy Genetics Are Smarter and More Profitable

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

Embryo Surrogacy – The Next Dairy Niche?

Beef-on-Dairy: How to Make Successful Semen Selection Strategies

Survey: Beef-Cross Calves Need Better Implant, Breeding Strategies

Survey: Beef-Cross Calves Need Better Implant, Breeding Strategies

Sexten: Lessons From the Dairy Industry

Beef-on-Dairy: Why Feedlots Crave This Important Information

Feedlots and Consumers Crave Knowledge

Health Records

Nutrition Records

Additional Areas to Focus On

Metrics = Money

For more on beef-on-dairy, read:

How to Increase the Marketability of Beef-on-Dairy Calves

Don’t Skip Day One of Calf Care

Track Calf Growth

Keep Health Records

For more on beef-on-dairy, read:

Dairy and Beef: A Merger of Many Merits

As Dairy Semen Sales Drop, Beef-on-Dairy Continues to Rise

Producer Perspective

Beef-on-Dairy Continues to See Major Growth

A Packer Perspective

Beef X Dairy: Vision & Reality

The Good

The Bad

The Very Ugly

The Secret to Raising Dairy Beef Profitably

Beef-on-Dairy Boosts Livestock Sustainability

USDA Oversight of Gene-Edited Livestock: A Seismic Shift for Agriculture