Replacements

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

Mon, 18 Aug 2025 14:15:31 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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

Beef-on-Dairy Impacts the Overall Dairy Heifer Discussion

Thu, 18 Apr 2024 20:08:11 GMT

While spring has arrived, higher milk prices have not. The immediate concerns on most producers across the U.S. is just how long low milk prices will continue.

Independent dairy financial advisor, Gary Sipiorski, says producers are trying to find ways to lower expenses without impacting herd health or milk production. He shares that producers need to revisit their heifer inventory and calculate just how many heifers they will need in the coming year.

“They cost $2,200 to raise or more,” Sipiorski says. “Beeding for beef right now is paying up. Some producers are even thinking of selling all their heifers. That is a serious decision.”

The high prices of beef are boosting dairy producers bottom line, as week-old beef crosses are going for a pretty penny. Sipiorski says producers are now trying to decide how long they should keep a cow.

“Three, four, five lactations,” he says. “These cows are paid to produce a lot of milk, however, they are still worth a lot of money as beef. And, you cannot afford to have any of them to die on the farm.”

At the Dairy Calf & Heifer Association Annual Meeting in Westminster, Colo., Dr. Geoff Smith, dairy technical services veterinarian with Zoetis, says that beef on dairy has been a blessing and a curse to dairy producers.

“It has been a blessing for many reasons, the biggest one being the extra income it has brought to dairies,” he says. “Many farms have fallen so in love with producing beef-on-dairy that they don’t have the number of replacement heifers needed. And they’re not able to make proper culling decisions because they don’t have the numbers of replacements in the pipeline.”

Although, according to Jim Salfer with University of Minnesota, producers do not seem to have an appetite for increasing the number of heifer calves that they are raising.

“A lot of it is because of the cash flow situation on farms and the extreme value of these crossbred calves,” he says. “Most of the farms that I work with have no appetite for even raising a few extra heifers.”

Salfer points out that highly pathogenic avian influenza (HPAI) will be crucial to watch to see if that results in additional culling.

“One other potential fly in the ointment is if states start restricting movement because of the HPAI breakout,” he says. “It seems like mortality levels are low, so that may not be likely.”

Low milk prices force producers to calculate how to generate extra profit and many have found through beef-on-dairy and cull cows checks. The key for producers going forward will be maintaining the right number of lactating cows going through the parlor and ensuring the right number of replacement heifers can keep that pipeline full. This is an on-going conversation that will continue to unfold as long as the beef market stays hot.

Check Out These Beef-on-Dairy Stories:

Dairy Breeding Programs May Help Keep Beef Affordable

Fri, 20 Nov 2020 05:39:45 GMT

With beef in short supply and prices rising drastically, the beef industry is starting to get a little help ... from the dairy industry, according to Richard Williams, ABS Global general manager for North America.

“Quality beef crossbreds from dairy cows offer benefits throughout the supply chain, from dairy farmers, to beef cattle feeders, meat processors, retailers and consumers,” said Williams, while speaking at the 67th Reciprocal Meat Conference. The American Meat Science Association conference brings together commercial, academic and government segments of the meat industry. This year’s event celebrates the 50th anniversary of the formal incorporation of AMSA, which was founded at the University of Wisconsin - Madison.

“Demand for beef is outpacing supply, and all indications point to beef prices remaining high,” said Williams. According to the USDA, the U.S. beef calf crop has declined in 14 of the last 16 years, from a high of more than 35 million in 1996, to less than 30 million in 2012.

“Because of drastic reductions in the beef cow herd, dairy cattle bred to beef bulls may help offset shortages in the beef supply chain. Dairy cull cows and bull calves have long found their way into the beef supply chain. Now, quality beef crosses from dairy cows are hitting the market and proving they can compete for growth, efficiency and quality with conventional beef product,” he added.

“Dairy industry changes, economics and advanced artificial insemination technologies - such as sorted semen - are increasing interest in cross breeding high-quality beef bulls with dairy cows,” said Williams. “The dairy industry is waking up to the opportunity.”

Since 2002, the number of dairy herds has fallen by 27 percent, to 47,000, but milk per cow has increased by 17 percent, to 21,822 pounds per year. The increases can be attributed to several factors, including genetic improvement, animal health practices and better feeding.

However, volatility in the marketplace has focused more dairy farmers on profitability than ever before. Cash flow and working capital have become more important metrics following an extreme downturn in 2008/09, and again in 2012, when a nationwide drought drove feed prices to levels that drove many dairies out of business.

In the U.S., more than 70 percent of dairy cattle are bred through artificial insemination, mostly with genetics from within dairy breeds. Typically, they produce a 50/50 mix of male and female offspring. Only a small proportion of female offspring are needed as replacements for aging milk cows, with the remainder raised for beef.

However, dairy breeds typically lack many of the physical qualities desirable in beef animals. Dairy breed calves being channeled into the beef supply chain were often sold at low prices, sometimes even at a financial loss.

Technologies such as sorted semen, which results in about 90 percent female offspring, now are being used to breed the best dairy cows to provide replacements.

“Breeding the remaining animals with beef bulls results in offspring with better beef characteristics. There is a significant incremental value opportunity by cross-breeding dairy cows with elite beef genetics,” said Williams.

For dairy operations, this management practice brings both animal welfare and economic benefits. Calving is easier; calves are healthier; and the resulting offspring from cross-breeding bring higher value in the marketplace. Also, breeding the very best cows using sorted semen can create more rapid genetic improvement within dairy herds.

Beef cattle feeders benefit by having cattle with faster growth and a more desirable consumer product. They also have a more consistent, year-round supply of animals, and improved supply chain traceability.

ABS is helping both the dairy and beef segments through its InFocus program. ABS Dairy InFocus involves the strategic use of proven beef sires on dairy cows within a comprehensive breeding plan. InFocus enables dairies to increase cash flow and improve future herd genetics. Lower performing cows are bred to beef and calves are sold at a premium. Top-performing cows are used for more desirable heifer replacements. ABS has regional relationships with calf growers and feedlots looking to buy InFocus calves at premium prices over the dairy bull-calf market.

Meat processors also benefit from year-round availability, traceability, and a better yield of meat from high-value cuts than what would come from typical dairy animals.

“Ultimately, retailers and consumers benefit,” said Williams. “They’re getting great dairy and beef products, and the added supply helps to keep prices in check.”

Source: ABS Global

How to Select and Develop Productive Heifers

Fri, 20 Nov 2020 05:37:25 GMT

Select and develop heifers to be productive cows

As you rush to sort calves in the light of high calf prices, be careful with the ladies in the lot. Your replacement heifers need a little more TLC than you may have thought.

In our previous article in the Maximize the Herd series, (“Choose Sires Wisely,” October 2013), Bob Weaber, cow-calf Extension specialist at Kansas State University, clued us in to the next step of taking your herd to a higher level of profitability: selecting replacement heifers that fit their environment.

Seems easy, but Kris Wilson, the general manager of the Bell and TO Ranches of the Silver Spur, has firsthand experience that it takes discipline to choose and develop heifers that can go the long haul. Rough canyon terrain and drought-stressed native grass pastures are the two biggest challenges he faces on the semi-arid desert environment of New Mexico.

“Because of our environmental challenges, I really think that if we are going to keep heifers in this area they need to be raised right here and taught how to be successful cows in this environment,” Wilson says. “One thing that I think has been lost is the sheer animal husbandry aspect of heifer development—being able to physically select the right animals for our herds.”

While other operations may experience different forage, environment and management challenges, or elect to utilize professional heifer development services, the key in any situation is to select and develop heifers to fit your environment, feed resources and future marketing goals.
“If we are going to change our production system to use fewer inputs, such as supplemental feedstuffs, and being more profit-minded, we must make sure we are selecting cows that have the appropriate biological size and type for their environment,” Weaber says.

“The two pieces that play the biggest roles in those nutrient demands is the mature weight of the cows and their lactation potential,” he explains, “because we know the cows with larger mature weights have higher maintenance requirements 12 months a year. The cows with higher lactation potential also have higher maintenance requirements, due to larger organ mass, 12 months a year, and more when they are lactating. About half the calories consumed in the beef value chain are attributed to dam maintenance requirements. So focusing on this area can have big benefits for the industry.”

“In some higher precipitation environments, we can do things to change forage availability, such as intensive grazing using improved forage species. However, in the Flint Hills of Kansas and other western states where we rely on native range, it is very difficult. The easiest thing is change the cows to fit the environment,” Weaber says.

Select her dam first. “On the Bell Ranch, one of the big keys to our heifer development program is to select heifers based on their dam side,” Wilson says. “We’ll ride through our cows and calves and evaluate what the dam looks like. Is she the kind of cow that has been able to remain fleshy in a droughty environment? Does she have proper structure and feet? Is she handling the rocks that we encounter in this environment? Does she have a good udder?” Wilson says. “Once the cow fits a certain type of physical criteria, then we evaluate the heifer at her side.”

As producers consider growing their herd sizes, Weaber says to be very mindful of what your forage resources are and select heifers appropriately.

“Our natural tendency—and I’m as guilty as anybody—is to sort out the biggest, fleshiest, nicest-looking set of heifers out of that group. In the long run, that results in increased cow size and lactation production in your cow herd—which means they will have higher maintenance needs,” Weaber says.

“These heifers probably have a great assortment of growth genes from their parents and are from a cow with above-average lactation potential. So you get into this cycle of selecting bigger and higher-milking heifers year after year. Selection should be for the optimum size based on your resource base, rather than selecting to make cows too big or too small, both of which have consequences.”

“What you should do is pick heifers based on age with acceptable levels of growth. Choosing heifers born early in the calf crop and that are in the middle of the calf crop for weaning weight helps insulate you from increasing the maintenance costs due to selection of high growth, high lactation potential replacement heifer calves,” Weaber says.

Early born heifers have additional benefits in fertility and longevity, adds Scott Lake, University of Wyoming associate professor and beef Extension specialist. “There are data from Nebraska and Wyoming that show heifers born early in the calving season have greater longevity and reach puberty earlier, which means they have a higher likelihood of breeding during the first cycle of their breeding season. There are a lot of little reasons all playing together to explain why profitability and sustainability increase with these early born heifers,” Lake adds.

Develop her potential. Heifer development begins at selection. Proper growth and development of the replacement female from birth until she produces her first calf is of critical importance for her to become a highly productive part of the cow herd, says Patsy Houghton, owner of Heartland Cattle Company, a professional heifer development and research center in McCook, Neb.

“A good nutritional program is only one facet of heifer development,” Houghton says. “In our 23 years, we’ve worked with many ranches to provide a full-service heifer development program that includes genetic consultation, estrus synchronization and heat detection, AI and embryo transfer, as well as placing the desired selection pressure on fertility via the feeding program and/or length of the breeding season.

Heartland’s prebreeding soundness exams, performed 35 to 45 days prior to breeding, results in an average 3% to 9% culling rate prior to breeding, she adds. Reasons include small pelvic area, infantile reproductive tracts and/or various functional soundness problems.

“When these poor replacement prospects are identified prior to breeding, it allows the rancher to merchandise them in a timelier manner, thus improving cash flow and reducing total carrying costs,” Houghton adds.

However, nutrition is a critical component, Lake adds. “There is a fine line—we don’t want to trick heifers into thinking that life is going to be a high-energy corn diet fed from a bunk. It is important, though, to get them in good shape to reach puberty early and cycle before the breeding season, especially if we AI them,” he says.

“Develop heifers on a high forage diet with high feed intake to develop rumen capacity. Dry matter intake is important for growth and reaching puberty, but we want them to be dependent on a high forage diet,” Lake says.

Houghton agrees, adding that their research advocates heifers being fed a high roughage/limit fed diet to weigh 60% of their mature body weight when bred for the first time. Some producers prefer to develop heifers to only 50% to 55% of their mature body weight with the idea it places more selection pressure on fertility, but Houghton prefers a very short 30- to 45-day breeding season.

“There is no better way to select for fertility than limiting the breeding season and not providing any excuses for open heifers. Additionally, if bred heifers are subjected to a rough winter, they are less likely to fall behind and need additional feed while pregnant,” she says.

“Playing nutritional catch-up in mid- to late gestational bred heifers often results in more calving difficulty,” she adds. When these management principles are followed, Heartland has seen an 8% improvement in second and third calf re-breed rates.

Building backbone. In New Mexico, Kris Wilson says an important part of his heifer development program is teaching animals to graze in rough canyon pastures. “This requires those heifers to really build foot and bone structure so they are able to cover country and walk to water,” he says. “If I’m going to have fallout on heifers, I want it to be their yearling year, not later, because they are still valuable to feed.

“Through this, the heifers learn not to be herd-bound,” Wilson adds. “We’re stocking at 50 to 75 acres per head, so you really have to teach those cattle to spread out. The grass ecology is so fragile here–especially through a drought—that you’ll get blown out areas or weed infestations if it is not managed well. Later, we see the additional benefit of cows calving all across the pasture, which mitigates calf disease challenges.”

Make it to year three. Even with everything done right, a heifer’s value hasn’t begun to be realized until her calf is on the ground and she’s rebred in year three. As she continues to grow and gestates her second-year calf, it’s critical that her plane of nutrition remains steady or increases, as she is still growing herself, as well as the calf inside. After all you’ve done to get her this far, remain steadfast and set her on the right path to greener pastures.

What it means to me

Select replacement heifers that fit your production environment, including terrain, weather, forage type and availability, and progeny’s end market goals.
A heifer’s dam can a good measure of the daughter’s ability to remain in good physical condition several years down the road.
Balance heifer nutrition programs between the growth needed to reach puberty and the high-forage diet they need to develop rumen capacity.

Maximize the Herd

The Maximize the Herd Series equips cattle producers with the specific information they need to steer their herds to the next level of profitability. Here’s what is in store:

1. Opportunity with Drought
2. Buy Bulls for the Long Term
3. Raise Heifers to Be Better Cows
4. The Best Forages for Your Cattle
5. Handle the Herd with Care

www.BeefToday.com/Maximize_the_Herd

To contact Sara Brown, e-mail sbrown@farmjournal.com .

Improve Reproductive Management to Improve Bottom Line

Fri, 13 Nov 2020 01:59:33 GMT

Livestock producers whose herds have poor reproductive success earn less and have higher production costs per head that those whose herds reproduce successfully, says David Fernandez, Cooperative Extension Program livestock specialist at the University of Arkansas at Pine Bluff.

In fact, reproductive failure is the most costly problem facing livestock producers. Dairy producers, cow or goat, with longer dry periods have higher feed costs because of increased periods of feeding without production in return.

“One of the main reasons for poor reproductive performance is poor nutrition early in the year,” says Fernandez. Puberty is one reproduction milestone that responds to management, and the most important management consideration is good nutrition.

Animals that are well fed reach puberty sooner and become pregnant sooner than animals that are poorly nourished. Females that reach puberty earlier are more likely to wean heavier offspring, remain in the herd and generate more income over their lifetimes than females that reach puberty later, says Fernandez. Heifers should reach puberty by the time they are 12 months old. In general, sheep and goats reach puberty between 4 and 6 months of age.

Females should not be bred until they reach 60 to 70 percent of their mature weight to avoid problems giving birth. Use young males sparingly since they have not finished growing. Males often lose weight during breeding season, and young males could become infertile if they are overused.

Well-fed females become pregnant more easily, and in the case of sheep and goats, are more likely to produce twins. Females that give birth in good body condition are less likely to have trouble with pregnancy toxemia and rebreeding, says Fernandez. They typically produce more milk and give birth to healthier, faster-growing offspring. Your county Extension agent can help you balance a ration to meet the needs of your animals to insure good reproduction, adds Fernandez.

Difficult birth, called dystocia, is one of the leading causes of infant mortality in livestock. Young animals that have undergone a difficult birth have trouble standing and nursing. They are often exhausted by their birth and fail to thrive. Mortality from dystocia is commonly seen in the first 48 hours. Dystocia also increases the time required for rebreeding. This is a problem in cattle as cows are expected to rebreed within 85 days of calving to maintain a one-year calving interval, says Fernandez.

Ranchers should be prepared to assist a difficult birth beginning one hour after seeing the feet or fetal membranes. Be prepared to help immediately in cases of incorrect fetal presentation, such as the fetus emerging backwards or with a leg tucked. If unable to deliver the offspring, Fernandez advises calling a veterinarian rather than resorting to extreme measures like using a come-along.

Sheep and goats are seasonal breeders which can be a disadvantage when trying to produce lambs or kids for specific holiday markets. The breeding season for both sheep and goats is when days are short, fall and winter. As the days grow longer and throughout the summer, reproductive activity slows or halts.

However, seasonality is not absolute, says Fernandez. Some breeds, such as Savanna and Myotonic goats, and Dorset, Rambouillet and hair breeds of sheep are less responsive to seasonal patterns. They will often breed throughout the year. There can also be quite a bit of variability in response to season among individuals within a breed.

Source: University of Arkansas Cooperative Extension