Profit Tips

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

Thu, 23 Apr 2026 14:41:08 GMT

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

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

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

Ending the War on Variability

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

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

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

The Factory Floor of Beef

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

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

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

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

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

Systems Capture Value

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

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

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

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

Mon, 13 Oct 2025 14:06:07 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mon, 15 Sep 2025 16:40:44 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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15 Investment Options for the Cow-Calf Producer

Tue, 02 Sep 2025 19:01:34 GMT

This year will provide capital for reinvesting in the business for many cow-calf producers. In a recent University of Nebraska Beef Watch article , Aaron Berger, Nebraska Extension livestock educator, shared options producers should consider before spending.

“Cow-calf producers are looking at the potential for exceptional levels of income for 2025 due to high calf prices,” he explains. “This income will give many cow-calf producers the opportunity to invest capital back into the operation in ways that can prepare them for future success.”

Berger shares the following options for producers to consider when thinking about and planning for investments in the ranch or cow-calf enterprise.

1. Celebrate and reward the people who have made investments and sacrifice to make the ranch successful. “Recognize the blood, sweat, tears and stress that family and employees have given and show them appreciation,” Berger says.

2. Visit with your banker and tax accountant. Talk about your current financial position and how income and investments can be managed to address tax liability for the 2025 year.

3. Invest in others and yourself. Berger asks: “Is there a class or an educational experience that would help people be more knowledgeable and effective in their roles and responsibilities?

He encourages producers to take a trip and see other operations that are doing something they are considering or would like to learn more about.

“Great leaders and managers are lifelong learners,” he adds. “The greatest educational gains usually are at the edge of your comfort zone.”

4. Explore retirement accounts as a tool for reducing taxable income. For operations without full-time employees, Berger says individual 401K accounts offer tremendous flexibility and the opportunity to borrow up to half of the balance of the account invested with a maximum of $50,000 borrowed per person. For a married couple this could be a total of $100,000.

When exploring 401K providers to potentially work with, be an informed consumer and fully understand the fee structure as well as services provided before setting up an account.

5. Look at your management information system. He asks, “Does your current recordkeeping and accounting system provide you with the information needed to make effective decisions?”

If it doesn’t, then an investment in the tools, training or hiring of help in this area could be extremely beneficial.

6. Hire an attorney to review and evaluate your current estate plan. Berger encourages producers who have been putting off developing an estate plan to consider this might be the time to invest in completing one.

7. Consider how livestock water and monitoring systems could be improved. Water is frequently the first limiting factor for grazing management systems, and a dependable water supply is critical for good grazing management.

“Technology has made remote water monitoring systems effective and affordable,” he says. “Consider how an investment in this technology could benefit your operation.”

8. Evaluate emergency power sources for wells and homes on the ranch. “A backup generator that can be incorporated into the electrical grid for the ranch could be valuable to maintain ranch operations and deliver water to livestock when the power is out for an extended period,” he explains.

9. Think about how additional permanent, temporary or virtual fences might be used to improve grazing management and increase forage use. Berger encourages producers to consider purchasing fencing supplies now when cash is available.

“Strategic use of electric fence tools and technology can provide rapid payback on investment through improved forage management,” he says. “Virtual fence technology has made rapid strides. Consider where the use of virtual fence may offer opportunities where the cost or logistics of building fence is prohibitive.”

10. Look at investments that could have a multiyear benefit, especially for improved pastures and hay meadows. Berger suggests producers consider spending money on soil fertility and pasture renovations such as adding legumes that can cost-effectively improve the quantity and quality of forage produced over the long term.

11. Evaluate the ability to buy inputs in bulk. Frequently there are cost advantages to being able to buy truckloads of products or buy inputs seasonally when prices historically are lower.

“Would an investment in this area provide flexibility in purchasing an input and reduce the cost of production?” he asks.

12. Contemplate adding a scale. Berger says producers who do not have a scale should consider investing in one.

“Being able to accurately know the weights of cattle has management and marketing benefits,” he explains.

13. Evaluate working and loading facilities. Berger asks: “Could changes provide a safer environment and better working experience for cattle and the people who are handling them?”

14. Invite a team of people to evaluate and give feedback on the business. He encourages producers to find people who will challenge them and who think differently than them.

“The implementation of just one or two ideas could have a tremendous impact on long-term business success,” he adds.

15. Be careful to avoid paying taxes by purchasing equipment. Berger explains overhead costs associated with depreciation, interest, repairs, taxes and insurance that come with owning equipment are costs that should be minimized to the cow herd for long-term profitability.

“Consider investments that will help to reduce overhead expenses,” he says. “If it isn’t a good business investment, it isn’t a good tax management strategy either.”

“Thinking ahead and coming up with a plan for strategic investment can increase the long-term impact on the bottom line and position the business for future success,” Berger says.

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Transform Efficiency: The Evolution of Full Circle Jerseys

Wed, 06 Aug 2025 13:54:08 GMT

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

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

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

(Wyatt Bechtel)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tue, 08 Jul 2025 13:39:10 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fri, 09 May 2025 13:46:43 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tue, 17 Sep 2024 20:27:30 GMT

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

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

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

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

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

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

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

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

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

8 Reasons Why Beef-on-Dairy Makes the Perfect Cross

Mon, 08 Jan 2024 19:44:38 GMT

The beef-on-dairy revolution is booming. What started as a trend more than a decade ago has quickly grown into a reliable profit stream for dairy farmers across the country. As milk prices continue to sink lower, more and more dairy producers are turning their attention to creating a healthy beef cross calf to generate additional income for their farms.

“Even though we’ve gotten to a position to where beef-on-dairy is becoming more well-known, the reality is dairymen have been beef producers all along – whether that’s been through cull cows are bull calves,” says Dale Woerner, Professor and Cargill Endowed Professor at Texas Tech University. “However, as beef prices have crept up, the beef-on-dairy segment has seen an explosion.”

Just five years ago there were approximately 25.4 million cattle fed through feedlots that were harvested year-over-year, according to Woerner. Traditionally, about 5.1 million of those animals had been purebred dairy heifers or steers. However, this number has seen a drastic change.

“Since 2018, we’ve seen a major shift with beef-on-dairy crossbreds. We don’t know exactly how many of these animals are coming through as crossbreds, but we’re confident that it’s over 3.25 to 3.5 million head of beef-on-dairy cross animals that used to be strictly purebred dairy,” Woerner says.

This proportion has grown tremendously within the last few years, and it is estimated that almost 23% of the total number of fed steers and heifers within the U.S. are actually coming from dairies.

So, what’s the reason for this recent spike? As a result of widespread drought across the mid- and southwest, the beef cow herd has shrunk significantly. However, with more and more dairies relying on beef-on-dairy calves to help turn a profit, these operations have helped fill the meat cases.

“The dairy segment of the beef industry has grown in significance the last few years even more so than it had traditionally,” Woerner adds. “It’s created the perfect storm and that’s why you’re seeing the exceptionally high values.”

As more dairy crossbreds make their way into the marketing chain, Woerner and his research team have closely examined the characteristics of these animals and the products they yield, compared to their full-blood dairy and beef cousins. Their findings regarding major performance and carcass data – via retrospective data evaluation, and their own research -- include:

Feedlot growth – Close-out data evaluations show that the average daily gain and feed-to-gain ratio of crossbreds is significantly better than Holsteins and similar to conventional beef cattle. Woerner said crossbred finishing times that are about 20% faster than Holsteins promote a positive message about sustainability because they produce the same amount of beef in a shorter timeframe and on less total feed.

Quality grade – The Texas Tech researchers found the percentage of crossbreds that grade Choice or higher is roughly equal to, if not better than, conventional beef animals. They appear to inherit the superior marbling capability of their Holstein ancestors but at a faster finishing pace.

Carcass yield -- Crossbreds have a lower dressing percentage than full-blood beef animals, at least partly because they are leaner and thus have lighter carcasses relative to their live weight. They have, on average, an intermediate fat thickness at the 12th rib between that of full-blood beef and dairy animals. Overall, they have higher red meat yield than dairy carcasses, and the best crossbreds are comparable to, or even better than, conventional beef cattle.

Eating quality – A recent study by Woerner’s group showed full-blood Holsteins still take first place in terms of tenderness, followed by crossbreds and then conventional beef. Crossbreds led among the three in terms of superior flavor, with the most “fat-like” and “buttery” flavor ratings. Overall, they were scored the second-most desirable in terms of eating quality behind Holsteins.

Meat color – A major downfall of traditional dairy beef is that it has a darker color and lacks the “cherry-red” appearance of conventional beef, which consumers prefer. The difference is so distinct that most retailers will not market dairy beef and conventional beef in the same meat case. The Texas Tech researchers found that crossbreeding removes the coloring problem, and also results in an additional 12-24 hours of color stability. “This is a huge change in our industry,” Woerner says. “Rather than segregating Holsteins, we can now sell crossbreds together with conventional cattle.”

Muscle shape – The smaller, narrower, and more angular shape of finished Holstein loins has long been a drawback for dairy beef. The Texas Tech researchers found that crossbred longissimus (loin) muscles are larger and rounder than Holsteins, and that consumers could not distinguish their shape compared to those from conventional beef cattle.

Consistency – Dairy animals produce a consistent supply of offspring year-round, which helps improve market stability. Today’s dairy cattle also are highly consistent genetically, creating potential for excellent offspring consistency with correct sire matings.

Traceability – “Record-keeping on U.S. dairies is superior to most conventional beef operations,” Woerner says. “That information on birthdate, performance data, and sire identification is highly valuable for branded beef programs and international markets.”

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.”

Leading Experts Offer Beef Demand Insights

Tue, 26 Sep 2023 14:15:38 GMT

Mike Simone, Executive Director of market Research and Intelligence with the National Cattlemen’s Beef Association, says high beef prices are here to stay for a while for several reasons.

“Demand has been incredibly robust,” he stated on a recent PDPW Dairy Signal webinar, sharing that the persistent drought out west, which has recovered somewhat in some places with spring and early summer rains, but has impacted the overall reductions in the beef cattle herd.

“Reductions in the cattle herd has been a key factor in that high input cost for producers across the board,” he says. “This doesn’t have a real sense of that turning around quickly and producers have been quick to rebuild the herd.”

Brandon Scholtz, President and CEO of the Wisconsin Grocers Association, shared with the PDPW audience that the pandemic impacted prices and the supply chain. And consumers reacted.

“When we were dealing with COVID, beef prices were probably the prices to first start going up,” he says, sharing that grocery stores now promote family meals and cookouts, including meat, especially during the summer months.

“There was all sorts of social media promoting family. You see grocery stores recommending what to use for tailgates and barbecuing,” he shares, adding that consumers have traded down on certain types of cuts or even potentially traded out on protein options.

Future Consumer Insights

Simone says he never worried about the supply chain issues.

“We never thought twice about it,” he says. “We put our order in the stock, and it showed up. All of a sudden there was a pandemic and everybody’s talking about this. We know the workforce was productive. That was the big thing that drove everything, and it still does.”

Scholtz shares research is predicting that consumers are planning to dine out less in the coming months.

“They’re looking for deals or clipping coupons or shopping sales, they’re shopping multiple stores,” he explains. “We’ve continued to see people say they’re stocking up and freezing more and raising more beef and also finding more ways to deal with leftovers.”

Simone notes that he sees a continued collaboration with the grocery stores, as they give their customers suggestions on how to use beef.

“It used to be just a couple of recipes on the website, but it has grown significantly more than that too. I think there’s a lot of really positive stuff on social media in terms of how to incorporate beef and or other proteins into your diet, events, and recipes. You see so much creative stuff out there. And again, it comes out of people’s desire to try and make the most out of what they can get and how to kind of manage a price increase.”

To listen to the entire conversation of the Dairy Signal Beef Demand Insights click here:

Beef Demand Insights (mediasiteconnect.com)

Check out These Beef on Dairy Stories:

What Beef on Dairy Cross Has the Best Value?

Fri, 25 Aug 2023 21:45:18 GMT

The beef market is sizzling hot and dairy producers have not only noticed but have taken action to capitalize on securing an alternative profit source to their bottom line. The burning question is, how long will the beef market be strong and what is the ideal beef on dairy cross?

Jeremy Howard, senior sales and marketing manager with Simplot, says he believes that full beef embryos are the best option for packers and dairy producers.

“Because of various market opportunities, along with specific, individual goals, there is no optimum breed or bull,” he says. “The best choice for a dairy is to choose the option that’s tailored to their herd and produce a calf with the greatest value in their market.”

Beef Embryos

Like many producers, sexed semen proved successful, creating a plethora of replacement heifers for Ryan Junio of Four J Jerseys in Pixley, Calif. Nearly a decade ago, he introduced beef into his breeding program to essentially maintain the size of his Jersey herd.

Initially, Junio notes his beef program was swayed by the market; he used Wagyu, Charolais and Angus breeds. A few years ago, though, he saw the writing on the wall from his local buyer.

“If we wanted to stick around the beef game, we needed to start making a purebred beef calf,” Junio explains.

Currently, 250 Angus calves hit the ground monthly at Four J Jerseys. They use 90% of their 4,000-head milking herd as recipients for purebred Angus embryos that Junio then sells as day-old calves. Making the switch from AI to beef embryos has allowed Four J to maintain herd size while using sexed semen on youngstock and reserving the top 10% of the milking herd based on elite genetics for AI or Jersey embryo transfers (ET).

Jersey/Charolais Cross

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

“This cross upgrades the Jersey exponentially,” she explains. “Muscle marbling to durability to performance in the Southwest heat is impressive.”

Genetics can improve a lot with crossbreeding, but Herinckx underscores the importance of feeding an animal correctly.

“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.

Beef will continue to be a hot choice by consumers as demand continues to be high and supplies are at the lowest level in decades. This all means that U.S. dairy producers will continue to lean forward at the opportunity to add dollars to their bottom line. Dan Basse with AgResource Company encourages dairy producers to breed more beef to their bottom-end cows.

“We all need to be doing our share in bringing food to the table because America is going to be needing this long term,” he said at the 2023 Professional Dairy Producers of Wisconsin (PDPW) Annual Meeting earlier this year. “63% of net farm revenue is money that you keep which is determined by the decisions you make in the markets.”

For more Beef on Dairy stories:

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:

Premium Alfalfa Hay Delivered by Amazon Prime

Mon, 22 Aug 2022 16:37:12 GMT

According to EarthWeb, Amazon reports that its Prime version had more than 200 million members in 22 countries in April 2021. From accessories to clothing to toiletries, households can get just about anything with one click through their Amazon app.

Dairy farmer, Steve Maddox knew his wife loved Amazon. Recently he also found a newfound love, as he began utilizing their shipping service. Earlier this month, an Amazon Prime truck hauled premium alfalfa dairy hay from his Logan, Utah hay ranch to his Riverdale, Calif. dairy farm.

Amazon worked with a dispatcher who then was able to fill the truck with Maddox’s milk cow alfalfa hay. Although, the load of hay didn’t qualify for free shipping.

“Amazon Prime back hauled 21 tons of hay from our hay ranch to our dairy,” Maddox shares. “The cost of shipping was $1,250.”

He says his hay trucking cost is down from its peak in December 2021, at around $2,000, but up considerably from 8 years ago.

“The cost of trucking from Utah to California back then was between $900 to $1,000,” he says.

Maddox Dairy milks 4,000 cows, with an equal number of heifers, and farms 1,600 acres of almonds and 3,00 acres of wine grapes, as well as cropland to supply feed for their cattle.

According to Maddox, Amazon Prime has many orders heading east but lacks loads coming west.

“They look to backhaul,” he shares.

Delivered in a straight truck, Maddox says they use a forklift and a ramp to underload the 1,400 lb. bales.

(Farm Journal)

“We have 2,500 tons of hay that will get moved from Utah to California,” Maddox says. “That is 120 loads that are trucked from June to the first part of November. Sometimes we will store the hay in Utah and move it west when we need it.”

Amazon is known for its quick deliveries and when the big semi-truck showed up, Maddox didn’t question what his wife had ordered and realized there are many benefits to holding a Prime membership.

Beef-on-Dairy Decisions, Opportunities

Thu, 03 Feb 2022 19:01:27 GMT

Beef-on-dairy breeding continues to grow in popularity in U.S. dairy herds. The trend has been fueled by multiple factors, including low value for dairy bull calves; limited packer interest for dairy fed cattle at this time; large dairy heifer inventories; high costs for raising replacement dairy heifers with comparatively low market values; and more targeted sorting of dairy herds for breeding and genetic advancement strategies.

Will the trend continue? That may depend on how successfully the dairy industry aligns with the desires of the beef industry, according to a pair of University of Wisconsin Extension educators.

Bill Halfman, Monroe County, and Ryan Sterry, St. Croix County, helped manage a survey of dairy producers in Wisconsin, Michigan and Iowa in the fall and winter of 2018. The purpose of the study was to assess how herds utilize beef genetics on dairy cattle, including how they determine whether to breed individual animals to beef or dairy sires, along with their beef sire-selection criteria.

A total of 69 herd managers from Wisconsin (47), Michigan (15) and Iowa (7) responded to the survey. Dairies of various sizes who were likely to be using beef genetics were recruited. Of them, 53 were found to be using beef genetics, of which 45 answered the majority of survey questions.

In selecting dams for beef crossbreds, survey results included:

Herds were more likely to be using beef genetics to breed lactating females versus virgin heifers.Only 13% of those using beef genetics were breeding more than 10% of their heifers to beef sires, while 80% of respondents were using beef genetics on more than 10% of their lactating cows.
Heifer inventories largely dictated what portion of the herd would receive beef semen. More than 80% of respondents cited dairy replacement inventories as one of the primary drivers of beef breeding decisions.
Failure to conceive to dairy semen was the top criteria in choosing to breed to beef semen.Choosing beef semen as a back-up for repeat breeders was listed as at least one criteria for 80% of respondents, and the top criteria for 38% of respondents.

Regarding beef sire selection, the survey showed:

Black Angus was the overwhelmingly favorite beef breed.More than 60% of respondents said they used Black Angus sires, followed by Lim-Flex (12%); Limousin (11%); SimAngus (7%); Simmental (6%); and other (2%).
Semen cost was identified most often as a high priority in beef sire selection.More than half (51%) of respondents noted semen cost as at least one key criteria for the beef sires they chose, followed by conception rate (49%); calving ease (44%); solid black hair coat (24%); and having the decision made for them by a mating service (24%). Traits for marbling, ribeye area and frame score were far behind.

In a follow-up report , Amanda Cauffman, Grant County, and Sterry noted a disconnect between dairy producers’ criteria for selecting beef sires, and priorities of the beef feeder segment receiving the calves. In contrast to dairy breeders’ selection criteria for beef sires, the feedlot segment prioritizes carcass value; carcass weight; feed efficiency; ribeye area; muscling; moderate frame score (Holsteins); increased carcass weight (Jerseys); and using homozygous polled bulls.

“Some traits important to the dairy do not add value in the feedlot or to the carcass,” the authors stated. They would like to encourage dairy producers to consider traits that will result in more desirable beef animals in addition to the traits that are important to the dairy, instead of just black calves that may not perform uniformly. For example, Holsteins tend to marble well, but have small, elongated ribeyes and undesirably large frames if rations are improperly managed. Selecting beef sires based on ribeye EPDs, carcass weight and frame size could help improve areas in which dairy fed cattle tend to fall short, thus creating more consistent, desirable beef animals.

Cauffman and Sterry also suggested that within-breed sire selection is important. “Limousin, Angus and Simmental all have homozygous black, polled bulls that can provide needed muscle shape and moderate frame size to add value to crossbred calves. Within-breed selection is highly important, regardless of the breed you choose,” they said.

Marketing also could be more strategic, as more than 70% of the survey respondents sold their beef-dairy cross calves at a week old or less, with more than half of those animals marketed through sale barns. The Wisconsin educators noted that some feedlots offer contracts or purchase programs for crossbred calves, if you use the genetics they select or provide, and follow specific health protocols. These arrangements can result in a win-win for both dairy and beef producers.

Finally, the authors advised against retaining dairy-beef crossbreds as female brood cows for beef production. While the prospect of higher milk production is attractive, they said some dairy traits can persist for generations and might negatively affect feeder calf quality.

“Black” is Not the Only Goal in Beef-on-dairy Breeding

Thu, 03 Feb 2022 19:00:34 GMT

If the dairy industry wants the beef business to embrace beef-on-dairy crossbreds long-term, we need to up our genetic selection game, according to Denise Schwab, Extension Beef Specialist for Iowa State University.

Schwab advised producers at Iowa State’s recent Midwest Dairy & Beef Day that beef-on-dairy breeding decisions need to be made with the same precision they devote to genetic selection for dairy replacement females. “It’s not likely you tell your semen rep, ‘Just give me Holstein semen that’s cheap,’” she stated. “Yet that’s what’s happening with a lot of beef-on-dairy breeding right now. We need to aim for more than just a black calf.”

Unfortunately, many of the dairy-beef crosses today are simply “black Holsteins,” with similar frame characteristics to full-blood dairy animals. “If you’re going to do that, you might as well just produce Holstein steers, because at least there is a specific market for them,” said Schwab. “The tall, black crossbreds don’t fit well into any production or marketing system.”

Many producers aim for black animals so they can qualify for Certified Angus Beef (CAB) premiums. But Schwab noted CAB quality standards specify details that a “black Holstein” animal probably won’t achieve, like 1,050-pound-or-less hot carcass weight, and superior muscling.

And while she is sympathetic to today’s economic conditions that can generate around $100 per head for “any” black calf versus about $30 for a Holstein, she is wary of long-term consequences. “If we flood the market with undesirable animals, that premium will be short-lived,” she stated. “I want to protect that value so we can continue capturing more dollars 3, 5 and 10 years down the road.”

To do so, she suggested focusing on the following characteristics when selecting beef sires to cross with Holsteins:

Breed – The natural inclination may be to reach for Angus semen to produce black calves. But the Angus breed has the largest beef registry in the country, which means it also has the greatest variability. Surprisingly, Angus also now has the highest hot carcass weight of the major beef breeds, which means a Holstein X Angus cross may very well be duplicating frame size. “Think specifically of the bull, not just the breed,” advised Schwab.
Frame size – To develop more compact animals that feed and finish more efficiently, Schwab suggested choosing moderately sized bulls, with frame scores of 5 or under.
Ribeye area – Holsteins tend to marble very well and can have excellent quality grades, but also have elongated, less-desirably-shaped ribeyes. “Select beef sires with ribeye EPDs in the top 25 percentile of the breed,because there is a high correlation between ribeye size and shape,” advised Schwab.
Muscling – Holsteins have a lower muscle-to-bone ratio, so choose bulls with higher muscle scores to enhance the beef composition characteristics – in terms of muscle size and shape -- of the offspring.
Calving ease – While selecting for moderately sized calves is a common decision, Schwab said it actually is less of a concern in beef-on-dairy breeding. “Most Holstein cows easily can lie down and have a 100-pound calf,” she stated. “You don’t need to choose from the top 10% of calving ease beef sires. The top 30-50% is a very reasonable range.”

Finally, Schwab noted beef sires should be one strategic element of a herd’s total genetic plan, and not just “cow fresheners” for repeat-service dams. “The fertility of beef sires is no better than dairy bulls, so beef breeding should not be viewed as a ‘service of last resort,’” advised Schwab.

Rather, she said carefully selected beef sires should be mated with dams based on pre-established criteria, such as genomic testing results, parity or genetic merit – with the overall quality and yield of a finished market animal in mind.

Congressmen Introduce Agricultural Fairs Rescue Act

Thu, 28 Oct 2021 13:50:08 GMT

Rep. Jimmy Panetta (D-CA) and Rep. Billy Long (R-MO) introduced the Agricultural Fairs Rescue Act on Thursday to help preserve agricultural fairs across the country and offset the devastating financial losses they have experienced due to COVID-19.

The legislation will provide $500 million in grant funding for agricultural fairs through state departments of agriculture to keep them functioning and preserve them for the future, according to a release.

The Agricultural Fair Rescue Grants would be administered by the USDA Agricultural Marketing Service (AMS) to states or state departments of agriculture based on the loss of attendance those fairs have experienced in 2020.

“County and local fairs are very important to agriculture and our communities all across our country. Fairs provide our producers with the opportunity to market their crops and livestock, and foster the next generation of farmers. They also are an economic engine and a gathering place for us to highlight and celebrate our communities. Like many institutions, fairs have been impacted by COVID-19, and we must provide them assistance if we are going to preserve these fairs for the future,” Panetta said in the release.

Agricultural and community fairs have been an important part of rural communities for over 250 years. State and local fairs provide farmers and ranchers with the opportunity to increase the public’s awareness of local agriculture.

“The global pandemic has caused fair cancellations around country in unprecedented numbers. As a result of these cancellations, fairs across the country are facing dire financial hardships. This is why National Association of State Departments of Agriculture (NASDA) supports the Agricultural Fairs Rescue Act to ensure fairs receive the necessary resources to persevere and keep our rural communities strong,” said Barb Glenn, NASDA CEO, in the release.

Fairs also provide the future leaders of this country –4-H and FFA members – with vital leadership skills development, said Marla Calico, president and CEO of the International Association of Fairs & Expositions.

Farm Journal is disappointed that fairs and events are canceling, we are bringing a new American Farm Show to you! Farm Journal Field Days — a free virtual event Aug. 25-27. Do you have a 4-H member who is not able to show at their fair this year? Text photos or video of your 4-H’er and his or her project with the tag “FarmON” to 31313, or tag #FarmON on social media. Select photos and videos will be shown as part of the virtual #FarmON concert Aug. 27 at 7 p.m. Central on AgWeb.com, YouTube and RFD TV. Register now!

Read Our Extensive Coverage of Fairs During COVID-19:

Why COVID-19 Relief Should Include America’s Agricultural Fairs

State Fair Cancellations Shatter Dreams Across the Country

10 Realities Fairs Must Face Due to COVID-19

State Fairs in 2020: Decisions No One Wants to Make

The Importance of County Fairs

Overhe(a)rd: Screenhouses and the State of State Fairs

2020 Missouri State Fair Pivots to a Youth Livestock Show

Oklahoma State Fair Latest to Cancel for 2020

Kansas State Fair Cancels for First Time in Over 100 Years

Iowa State Fair Cancels for First Time Since World War II

Illinois State Fair Cancels, Offers Youth Show in September

Indiana State Fair Canceled, Plans for Modified Youth Livestock Show

Colorado State Fair Announces “Reimagined” Event

Quarantine Lessons You Can Only Learn in the Barn

New Group Backs Online Livestock Auctions for Youth Amidst Pandemic

Unpopular County Fair Opinion

Virtual and safe to attend, Farm Journal Field Days is designed for everyone! | Register at FarmJournalFieldDays.com