Not long ago, beef-on-dairy was viewed as a side experiment to add value to low-demand dairy bull calves. Today, it’s become a practical strategy for both the dairy and feedlot sectors, boosting dairy margins while giving feedlots a steady, predictable supply of cattle.
As the segment has grown, the conversation has moved from whether it works to how it can work better. That evolution was front and center during the 2025 MILK Business Conference, where dairy producers and feedlot managers came together to compare notes, share lessons learned and discuss where beef-on-dairy is headed next.
From Skepticism To Standard Practice
For many dairy producers, the first step into beef-on-dairy was taken cautiously. Daniel Vander Dussen, a New Mexico dairy farmer, remembers pushing back when beef-on-dairy was first introduced on his farm.
“We started giving it a try in 2017, so we weren’t the first ones to do it. I actually pushed back against it at first,” he says.
At the time, the idea of using beef semen on Holstein cows felt counterintuitive, especially after years of genetic progress focused mostly on milk production. The turning point came when calf buyers began to weigh in on value.
“Our custom calf raiser came to us and said, ‘Look, no matter what, your beef-on-dairy calves are going to bring you more than that Holstein steer ever will.’ So as soon as we figured that out, we went to beef-on-dairy. And looking back, I wish I would have started doing it even sooner,” Vander Dussen says.
That same progression has played out on a larger scale for Tony Lopes and his family’s fourth-generation California dairy. Over the past seven years, Lopes has helped turn beef-on-dairy from a trial concept into a central part of the operation. Today, the family milks 5,000 cows across four locations, produces about 3,800 beef-on-dairy animals annually and sources more than 12,000 additional crossbred calves from outside dairies and calf ranches.
“Beef-on-dairy was becoming the trendy thing to do, and it coincided with us going through an expansion,” Lopes says.
During the farm’s expansion, replacement needs were secured using sexed semen. Once the dairy had hit their target, they stopped using conventional semen altogether and leaned fully into beef genetics. Today, the program has evolved even further, with calves raised from day-olds, to 400-lb. weights and up to 700 lb. to 750 lb. before marketing.
“In seven years, we’ve gone from knowing nothing about the feedlot side of beef-on-dairy to making it an incredibly big piece of our operation,” Lopes says.
What To Consider
For dairy producers like Lopes and Vander Dussen, as beef-on-dairy has cemented itself in the market, success has shifted from simply creating a black calf to producing one that fits the needs of the entire supply chain.
Feedlots and buyers are looking for cattle that finish the way they’re expected to, and that begins on the dairy. Breeding decisions, early calf health and how calves are managed in the first weeks all influence how predictable those animals will be later. As the market continues to mature, producers who plan ahead and stay connected to their buyers will be better set up for the long haul.
Begin With The End In Mind
Value doesn’t start at the feedlot. It starts on the dairy. Lopes says long-term success comes from thinking about how calves will be evaluated down the line. Animals that meet buyer and feedlot expectations are easier to market and more likely to earn premiums.
“If there isn’t value after the calf leaves your operation, it’s going to be difficult to capture more,” Lopes says. “Producers need to understand what buyers value and plan for that from the start.”
Vander Dussen learned that lesson over time.
“At first, as long as you had a black calf, that felt like enough,” he says. “But we quickly learned that feedlots care about more than just color. I wish we would have pushed harder for higher genetics right away.”
Lopes bases genetics and buying decisions on conversations and data that align with his cattle marketing goals, not just individual traits.
“The goal is predictability,” he says. “You translate performance into dollars and make decisions from there.”
That same thinking carries into the feedyard.
“Everybody has to win within the chain,” says Dr. Eric Belke, veterinarian and feedlot partner at Blackshirt Feeders in Nebraska. “When data and feedback are interchanged, it leads to more consistent cattle and more value for everyone involved.”
Feedlots Crave Consistency
Collaboration matters with feedlots now leaning heavily on beef-on-dairy programs like those run by Lopes and Vander Dussen. These operations provide a steady supply of calves that grow and perform predictably, giving feedlots the scale and reliability they need.
Belke says that need for consistency is exactly why Blackshirt Feeders was designed around beef-on-dairy cattle.
“Our feedlot was really built for feeding beef-on-dairy animals,” Belke says. “Right now, we’re at a capacity of 100,000 head, and we’re under construction. Next year, we’ll be at 150,000 head. By the end of 2027, we’ll be at 200,000 head. Currently we have about 87,000 head on feed, and over 90% of those are beef-on-dairy animals.”
As beef-on-dairy enters a new era, feedlots like Blackshirt Feeders are looking more toward dairies to keep their pens full. Belke says the year-round flow of cattle sets beef-on-dairy apart from traditional procurement models that are heavily influenced by seasonality.
“The reason this closed loop system really works is because we can grow cattle at scale. We needed a very large and consistent supply chain,” he explains. “Historically, in the feedlot world, there has been a lot of seasonality. With the beef-on-dairy population, we have a very consistent flow of cattle throughout the year.”
Consistency also shows up in performance, driven by genetic design and selection.
“Consistency is key, not just in the flow of cattle, but also in the consistent and predictive outcome of the cattle,” Belke adds. “What we’ve done genetically is work with dairy farmers to design sires that ultimately create extremely similar offspring.”
That focus on genetics and uniformity has helped feedlots manage risk and improve efficiency. Tony Bryant, director of nutrition, research and analytics at Five Rivers Cattle Feeding, says these animals are helping feedlots fill supply needs today and will continue to do so efficiently in the future.
“The cattle supply has been challenging for us trying to keep these yards full, and part of that is just the nature of the cattle cycle. But the other part of it is drought and the closure of the border. So, the beef-on-dairy cross animals really help us and the whole industry, especially from a cattle supply standpoint,” Bryant adds.
Bryant says improvements in genetics and faster access to data are helping feedlots get cattle that perform predictably, making it easier to manage costs and hit marketing targets.
“Beef-on-dairy has come a long way in a short time, with data coming back faster and the cattle getting better because of it,” he adds.
With the native beef herd continuing to shrink, both Belke and Bryant say the reliable supply and more predictable results of beef-on-dairy cattle have become critical tools for feedyards looking to secure cattle and manage risk year-round.
Predictability Built on Relationships and Data
As beef-on-dairy moves into its next phase, predictable outcomes are coming from stronger partnerships. Partnerships now begin at breeding, with dairies and feedlots working together to reduce uncertainty down the line.
“We start with the dairy before the calf is born,” Belke says. “Once the calf arrives, we make an offer based on the current market. Then we get the data that goes along with that calf. In return, the dairy producer gets a credit back to the semen company that is more than the original cost of the semen. So, they receive day-old market value for the calf, plus more than their semen cost covered, and we get the calf.”
That early coordination creates value on both sides. Dairy producers are paid fairly and rewarded for their breeding decisions, while feedlots gain calves with known genetics and management history that can be tracked from birth through finish. Just as important, that data follows the animal through the supply chain.
“All of this data goes back to help us make smarter decisions for the next generation,” Belke adds.
Bryant says that feedback loop is becoming essential as programs scale and risk management becomes more complex. With calves sourced from many dairies, knowing how animals were bred, fed and cared for early in life makes a difference.
“Our objective is to build relationships with the producer, their nutritionist and their vet so we can synchronize the program as best we can,” Bryant says. “It is slower than we would like, but it is worth it.”
As those relationships deepen, data is becoming the backbone of decision making. What started as basic record keeping is evolving into a system that actively guides breeding, calf care and marketing decisions.
“The more we know about these calves before they arrive, the better we can manage growth, feed efficiency and overall performance,” Bryant says.
Rather than just sharing information after the fact, producers and feedlots are beginning to use data in real time, predicting outcomes before calves leave the dairy and adjusting programs accordingly.
“When you track calves from birth through harvest, you can actually see how dairy decisions show up later,” Belke adds. “It helps everyone stay on the same page and make better choices.”
Looking ahead, transparency and collaboration are becoming part of doing business. Operations willing to share information and act on it are creating more consistent outcomes and setting the direction for where beef-on-dairy is headed next.
A Defining Shift
What began as a way to add value to unwanted calves has evolved into an integrated system shaped by genetics, data and collaboration. For dairies, it offers a way to strengthen economics during volatile markets. For feedlots, it provides dependable supply and predictable performance in an increasingly uncertain cattle landscape.
As native beef numbers remain tight and pressure mounts across the supply chain, beef-on-dairy is proving to be more than a trend. It’s the new normal. Producers who plan ahead, build strong relationships and think about the whole system are the ones seeing the benefits.
