Beef on Dairy

Beef-on-Dairy Calves May Scour Less than Holsteins, New Research Shows

Mon, 11 May 2026 18:44:38 GMT

Beef-on-dairy calves have long been a solid income stream on many dairies, turning into a steady payout when they leave the farm and move into beef systems. More recently, farmers have also started to notice these calves often require fewer individual health treatments than their purebred counterparts, adding to their overall profitability.

Researchers like Melinda Kovacs, a master’s student at the University of Guelph, have started to take a closer look at how these calves perform early in life, when most health challenges tend to show up. One pattern that keeps surfacing is that crossbred calves tend to have fewer digestive issues than Holsteins, especially scours.

In her work, Kovacs found beef-on-dairy crossbred calves have lower diarrhea rates, fewer days with scours and fewer repeat treatments than Holsteins during the rearing phase.

“Producers were finding that the health of these crossbred calves was improved,” Kovacs explained during a recent “The Dairy Health Blackbelt Podcast” episode. “They were finding less health challenges, or these animals were able to recover from disease a little bit better than the purebred calves.”

Fewer Scours Cases Stand Out

The study followed approximately 640 calves housed at a single calf-rearing facility over about 18 months. Kovacs analyzed records from 446 Holstein calves and 194 beef-on-dairy crossbred calves.

Using twice-daily health scoring, Kovacs and her team monitored diarrhea and respiratory disease while also collecting weekly body weights, milk intake and starter feed intake data.

When she compared the two groups at the conclusion of the study, one health challenge stood out immediately.

“We found that the Holstein calves had a higher incidence of diarrhea compared to the crossbred calves,” Kovacs says. “We also found that translated to fewer days with diarrhea.”

Beef-on-dairy calves_Suanne Blackwell

(Suanne Blackwell)

The same trend appeared when she evaluated severe diarrhea cases.

“This is what we were expecting based on kind of our communication with producers,” Kovacs says. “That the crossbred calves would have less diarrhea in the preweaning or the rearing phase.”

For dairy farmers and calf raisers, fewer scours cases can influence nearly every part of calf performance. Diarrhea remains one of the most expensive calfhood diseases on dairies due to treatment costs, lost growth, labor demands and long-term health setbacks.

Crossbred Calves Needed Fewer Repeat Treatments

Kovacs also examined therapeutic interventions and found another difference between the groups.

“We did find that the Holstein calves had a higher hazard of being treated multiple times for both diarrhea and respiratory disease,” she says.

Respiratory disease rates themselves were similar between breeds, but the need for repeated treatment was higher in Holsteins. That finding could become more important as dairy and calf-rearing operations focus on reducing antibiotic use while still keeping calves healthy and performing well.

“Perhaps there’s a greater ability of these crossbred calves to recover from diseases compared to Holstein calves,” Kovacs adds.

Why Are Beef-on-Dairy Calves More Resilient?

(Farm Journal)

The study wasn’t designed to pin down exactly why the differences are showing up, but Kovacs thinks genetics likely play a role.

“In the dairy industry, we see a lot of inbreeding depression with the Holstein animals,” she says. “And I think perhaps we have some heterosis or hybrid vigor in these crossbred animals.”

Selection pressure may also contribute to the performance gap. Dairy genetics have focused on milk production traits, while beef genetics have emphasized growth and muscling.

“In the dairy industry, we’ve been genetically selecting for obviously higher milk production, whereas in the beef industry, we’ve been selecting for more growth traits,” Kovacs says. “So perhaps these crossbred calves are benefiting from the growth traits compared to the Holstein calves.”

She also found crossbred calves gained weight faster during the rearing phase.

“The crossbred calves did have higher growth rates, so higher average daily gains,” Kovacs says. “They were about [15 lb.] heavier than the Holstein calves when they were finished this rearing phase.”

Differences Continued Through Harvest

Kovacs and her team later expanded the project to follow some calves from birth through harvest at approximately 13 months of age. She wanted to better understand how calfhood health and management influence later feedlot and carcass performance.

Beef_carcasses

“Right now, there’s kind of a big disconnect between all of the different components of the industry, between the dairy farm of origin, the rearing, the feedlot and the abattoir,” Kovacs says.

The performance differences continued beyond the early rearing phase.

“The crossbred calves, I believe, were about [120 to 124 lb.] more in body weight compared to the Holsteins,” Kovacs says. “Which does have significant implications in terms of the cost benefit of these animals.”

She also identified differences in ribeye area and carcass composition, suggesting the advantages weren’t limited to early growth but carried through to how the animals finished at harvest.

More Research Still Needed

Even with the encouraging results, Kovacs says dairy producers should not assume crossbred calves require less attention or lower-quality care.

“With my findings, we see that they’re maybe more resilient or robust,” she says. “But I think those producers still need to be offering the best care to those calves to ensure their success.”

Kovacs adds that much of the existing calf research has historically focused on purebred Holsteins, leaving major knowledge gaps around nutrition and management requirements for beef-on-dairy calves.

“A lot of research that’s been done in the past has focused on purebred Holstein calves,” Kovacs says. “So, we don’t really know if the requirements of these crossbred calves for both maintenance and growth are the same as for a purebred Holstein calf.”

As beef-on-dairy programs continue to expand across the dairy industry, producers are paying closer attention to which calves stay healthier and perform better from start to finish. This research suggests fewer scours cases early in life may be part of the advantage, adding to the overall profitability of beef-on-dairy calves.

For more on beef-on-dairy, read:

Preweaning Performance Data Emerges for Beef-on-Dairy Calves

Mon, 23 Mar 2026 17:18:21 GMT

Preweaning performance shapes everything that follows, but for beef-on-dairy calves, investigation into that early-life picture has been sparse. While crossbreeding has been evaluated extensively in the feedlot, data from the first weeks of life has lagged behind. A new Journal of Dairy Science study from the University of Guelph helps close that gap, observing the early life performance of crossbred calves compared to Holsteins.

Key findings from the study include:

Crossbred calves demonstrated comparable or improved preweaning growth.
Health outcomes, including morbidity and mortality, were similar between groups.
Crossbred calves had reduced incidence of diarrhea and required fewer respiratory disease retreatments.
No additional management complexity was identified for crossbred calves.

Growth Performance Signals Early Advantages

Crossbred calves showed comparable or improved growth during the preweaning period. Crossbred calves had increased body weights by day 28, and weighed ~7 kg more than Holstein calves by day 84. This is consistent with what would be expected from heterosis, particularly for traits like growth efficiency and robustness.

That shift is notable because most of the economic rationale for crossbreeding has focused on downstream performance. This work suggests those advantages may begin earlier than previously documented.

This pattern is not isolated. In a controlled study of Angus × Holstein calves, crossbreds gained about 0.14 kg/day more than Holsteins and reached higher weaning weights under the same management conditions. Additional work reports similar trends, reinforcing performance differences can emerge during the preweaning period rather than later in production.

From a clinical standpoint, early growth is also a useful indicator of how well calves are handling nutrition, colostrum management and disease pressure. On that front, crossbred calves appear to perform at least as well as Holsteins under typical conditions.

Health Outcomes Show Targeted Advantages

Overall morbidity and mortality were similar between groups; however, important differences emerged in specific disease outcomes. Holstein calves had a higher incidence of diarrhea and were more likely to require repeat treatments for respiratory disease compared with crossbred calves. This pattern suggests that while total disease occurrence was similar, crossbred calves experienced fewer or less persistent clinical events.

These findings do not indicate a need for different protocols, but they do suggest crossbred calves may be less likely to require repeated intervention once disease occurs. This has potential implications for labor and antimicrobial use.

Measures of passive transfer, including serum total protein, were similar between groups, indicating these differences were not driven by variation in colostrum management.

Implications for Veterinary Practice and Calf Value

As beef-on-dairy crossbreeding becomes more common, veterinarians are increasingly involved in guiding how these programs are implemented and evaluated. The growing body of preweaning data provides a more complete foundation for those discussions.

Key implications include:

Crossbred calves can be integrated into existing calf-rearing programs without added health risk
Growth advantages may begin during the preweaning period, not just later in life
Standard health and nutrition protocols remain appropriate across genetic groups
Management fundamentals continue to have the greatest influence on outcomes
Early-life performance should be considered part of the overall value equation in beef-on-dairy systems

Taken together, the evidence points in a consistent direction: beef-on-dairy calves perform as well as, if not better than, Holsteins early in life, without added health risk. As more data emerges, that consistency strengthens confidence these calves can be managed within standard systems while delivering comparable or improved early-life performance.

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

Thu, 26 Feb 2026 20:58:56 GMT

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

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

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

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

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

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

Breeding With the Beef End in Mind

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

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

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

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

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

From ‘Black Holsteins’ to Beef-Calf Performance

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

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

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

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

Some of those genetic improvements included:

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

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

Performance Trends from the Packer’s Rail

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

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

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

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

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

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

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

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

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

Processing Challenges Inside the Plant

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

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

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

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

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

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

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

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

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

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

Growing and Permanent Force

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

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

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

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

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

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

Tue, 03 Feb 2026 21:10:39 GMT

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

Can Beef-on-Dairy Help Fill Feedlot Pens?

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

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

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

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

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

(USDA Data)

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

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

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

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

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

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

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

What Impact is it Having on Packers?

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

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

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

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

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

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

The Other Side of a Hot Market

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

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

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

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

Idaho’s $4 Billion Dairy Boom: Why the Gem State is Defying West Coast Trends

Tue, 03 Feb 2026 14:38:52 GMT

While milk production across the West Coast faces a period of contraction, Idaho is carving out a different narrative. With USDA reporting the state’s production value near $4 billion in 2024, Idaho has transitioned from a regional player into a global dairy powerhouse. According to Rick Naerebout, chief executive officer of the Idaho Dairymen’s Association, this surge isn’t accidental. It is the result of a unique confluence of business-friendly policy, aggressive vertical integration and a fundamental shift in how dairy cattle are valued.

A Surge on a Massive Base

The sheer scale of Idaho’s recent growth is impressive. Naerebout reports the state has seen consistent growth rates of 5% to 8% per month year-over-year for the last 15 months. For 2025, Idaho is projected to be up 7.5% in total milk production.

“That 7.5% is on a very big base,” Naerebout explains. “It equates to roughly 3.5 million pounds of milk a day more this year than we had last year. We’ve definitely turned on the milk production.”

This growth has been facilitated by two primary catalysts. First, Idaho’s dairy producers are entering the current economic downturn with exceptionally healthy balance sheets following strong financial performances in 2024 and early 2025. Second, and perhaps most importantly, regional processors have finally lifted base restrictions that limited producers to fractional growth for years. With those caps removed, the Idaho dairy industry has surged to meet the available capacity.

The Magic Valley: The Heart of the Industry

The epicenter of this expansion remains the Magic Valley. While growth is visible across the state, approximately 75% of Idaho’s dairy industry is concentrated in this region. The concentration allows for an infrastructure of scale that is difficult to replicate elsewhere.

Idaho’s operations are notably larger than the national average, boasting nearly 2,500 cows per dairy. This scale, combined with a business-friendly climate — including the absence of agricultural overtime pay — allows Idaho producers to maintain lower costs than their neighbors in California or Washington.

Components and the “Black Calf” Phenomenon

Interestingly, the growth isn’t just coming from more cows; it’s coming from “better” milk. According to Naerebout, while volume is up 7.5%, the increase in milk components means the actual yield for processors is closer to 9%. This allows plants to produce more cheese, butter and powder for every pound of milk delivered.

Producers in Idaho, like other states, are also shifting culling practices.

“We’re hanging onto cows because they’ve got a black calf in them, and that calf is worth roughly $1,500,” Naerebout says.

The beef-on-dairy trend has become ubiquitous in Idaho, with adoption rates significantly higher than the national average of 70%. For many Idaho producers, the day-old calf has become a high-value commodity that provides immediate cash flow with minimal risk, as many are partnered with large feedlot operators, like Simplot, or feedlots to take the animals immediately.

Resilience Through Risk Management

The dairy industry is notoriously volatile, yet Idaho has shown remarkable resilience. Over the last 30 years, the state has only seen negative growth twice: in 2009 and 2013. Naerebout attributes this to a sophisticated approach to business that sets Idaho producers apart.

“Our dairymen are very savvy businessmen,” he notes. “We have a higher-than-average use of hedging tools. They insulate themselves from market downturns by making sure they are hedged.”

This financial discipline, coupled with being well-capitalized, allows these large-scale operations to weather economic storms that might shutter smaller farms in other regions.

The Shift to Vertical Integration

Perhaps the most significant structural change in Idaho’s dairy landscape is the move toward vertical integration. Unlike the traditional cooperative structure involving hundreds of members, Idaho has seen the rise of “processor-producers.”

Facilities like Idaho Milk Products and High Desert Milk were founded by small groups of dairy families — sometimes fewer than six — who pooled their capital to build their own processing plants. While Naerebout describes the startup phase of these ventures as “absolute hell” where families nearly lost everything, those who survived are now capturing the margins that previously went to third-party processors.

“They are capturing more margin for their business and using it as a form of risk mitigation,” Naerebout says.

This evolution from simple milk producers to sophisticated industrial processors represents the future of the Idaho dairy model.

Looking Ahead

As the industry faces a tightening economic window, Idaho’s producers remain focused on the long term. The goal for many is not just survival, but the creation of viable, multi-generational businesses. By combining aggressive adoption of technology, sophisticated risk management, and a willingness to invest in the processing side of the value chain, Idaho is proving that even in a mature industry, there is still significant room for a “growth state” to thrive.

“Idaho has been, and will likely remain, a growth area for plants and processors alike,” says Phil Plourd, president of Ever.Ag Insights. “It’s a hospital environment where all the stakeholders seem aligned around growing the industry.”

With strong components, high-value beef-on-dairy calves and a business environment that rewards scale, Idaho is well-positioned to remain the cornerstone of Western dairy production for the foreseeable future.

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The 2026 Dairy Outlook: Navigating Volatility, Genetics and the Beef-on-Dairy Revolution

The New Age of Beef-on-Dairy is Here

Mon, 12 Jan 2026 14:54:00 GMT

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

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

(Farm Journal)

From Skepticism To Standard Practice

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

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

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

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

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

(Angie Denton)

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

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

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

What To Consider

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

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

Begin With The End In Mind

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

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

Vander Dussen learned that lesson over time.

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

(Angie Denton)

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

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

That same thinking carries into the feedyard.

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

Feedlots Crave Consistency

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

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

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

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

(Angie Denton)

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

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

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

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

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

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

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

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

Predictability Built on Relationships and Data

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

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

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

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

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

(Angie Denton)

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

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

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

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

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

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

A Defining Shift

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

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

Healthy Lungs, Better Beef

Thu, 06 Nov 2025 20:04:20 GMT

The beef-on-dairy revolution has transformed the cattle industry in the U.S. In less than a decade, beef-on-dairy calves have evolved from virtually non-existent to making up nearly one-fifth of the U.S. fed beef supply.

The journey to the feedyard for those calves is quite different than that of their native beef pen mates. As this unique segment of the industry evolves, interest is growing in improving the systems that eventually bring those calves to market, from their dairy of origin to the packer.

In a recent I-29 Moo University webinar, Penn State University animal science graduate student Ingrid Fernandes presented results of her master’s degree research. The study examined the incidence of bovine respiratory disease (BRD) in beef-cross calves and its potential influence on fed beef performance.

Her presentation, “Long-Term Impacts of Early-life Bovine Respiratory Disease on Growth and Carcass Traits in Dairy Cross Cattle,” described the study that followed 143 calves from two Pennsylvania dairies from birth to harvest. The trial specifically focused on respiratory health and its long-term influence on animal performance.

Fernandes notes that according to 2017 USDA data, respiratory disease accounted for 32.7% of dairy calf mortality and 23% of death loss in beef calves. The same metric for beef-on-dairy calves is not currently known. She says dairy-style production systems, which vary considerably from a native beef calf’s upbringing, can leave calves vulnerable to BRD.

“A calf’s immune system develops gradually over its first eight months of life,” she says. “Everything that happens in that period can put them at risk of disease.”

Important stressors include castration, dehorning, transportation, dietary changes, dehydration, weaning, commingling and vaccination. Fernandes notes these stressors are often stacked together in dairy-style systems. Additionally, beef-on-dairy calves might make several ownership changes in their first eight months of life.

“Major BRD pathogens are commensal; they are part of the natural microbiota of the upper respiratory tract in cattle,” she explains. “Stressful events lead to compromised immune systems. This may create an imbalance in the microbiota, allowing the pathogens to travel to the lower respiratory tract, where they can cause inflammation, tissue damage and lung consolidation.”

Fernandes notes some calves with BRD exhibit obvious symptoms, while others display none. To positively diagnose BRD in the study, she and her team relied on thoracic ultrasonography at four days postweaning to detect lung consolidation.

Based on a number of criteria, including the size of lung consolidation area, they ultimately sorted calves in the first phase of the study into one group of 37 BRD-positive calves and another of 106 healthy controls. None of the calves in either group received any sort of treatment for BRD.

In terms of gain, an interesting phenomenon occurred. When evaluated up to 83 days of age, the calves with BRD suffered a loss in average daily gain (ADG) of about one-third pound per day. But when their performance was followed up to 238 days of age, they compensated for that lost gain and actually weighed slightly more than the controls by the end of that study period.

So, if they recovered, why worry? The answer: meat quality. When the same animals were observed in the second phase of the study , which followed them through the feedlot and ultimately harvest, some surprising findings emerged.

Compared to the controls, the BRD-affected cattle showed no significant difference in ADG, hot carcass weight, dressing percentage, ribeye area, 12^th rib fat thickness or yield grade. But one area of vast difference did show up: marbling.

The calves with BRD had 7% lower marbling scores overall. In terms of quality grades, 34% of the healthy controls graded High Choice or Prime, while only 14% of the BRD calves achieved one of those grades. More specifically, the controls produced seven animals that graded Prime, while the BRD group had none. Cattle with BRD at weaning also tended to have 3.05 times greater odds of having a carcass graded Select than the control cattle that were healthy at weaning.

Fernades attributes these results to intramuscular adipogenesis, or the development of fat cells within the muscle. It’s a process that begins early in life, and that’s where a health challenge like BRD can make a difference.

“This is evidence that our management of beef-cross calves early in life can have lasting effects on their performance and ultimate value,” Fernades says. “It points to our need for communication between industry segments and calf-rearing practices that reduce stress and disease opportunism.”

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Insights into Calf Mortality at Commercial Calf Ranches

Fri, 24 Oct 2025 12:52:20 GMT

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

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

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

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

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

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

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

Prioritize respiratory prevention.

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

Necropsies pay off.

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

Maintain consistent management year-round.

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

Collaborate across the production chain.

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

Success From The Start: Calf Health Starts Before Birth

Tue, 15 Jul 2025 13:11:35 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“The calves don’t lie,” Engle says.

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

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

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

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

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

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

The Legacy and Innovation of Lumar Dairy: Blending Tradition with Future Growth

Mon, 14 Jul 2025 14:15:25 GMT

In the heart of central California lies Lumar Dairy, a testament to the extraordinary journey of a family that turned sheer determination into a thriving agricultural enterprise. Founded in the late 1960s by a group of dedicated brothers from the Borba family, Lumar Dairy has grown from its humble beginnings. Louie Borba, an essential part of this legacy, recounts the story of hard work, innovation and generational shifts that have shaped their success.

A Family’s Dairy Dream
Borba’s father and two uncles began their American story like many immigrants, working tirelessly on farms despite language barriers and financial constraints. Emigrating from the Azores in pursuit of the American dream, the Borbas dreams materialized with the purchase of their first 35 cows and the rental of a small facility. By the late 70s, they had expanded to a larger farm, eventually building a new dairy facility in the mid-80’s.

As the family expanded, so did their business acumen. In the 90s, recognizing the need for individual growth and more specialized operations, the Borba family amicably split their venture into separate dairies, leading to the creation of Lumar Dairy in 1994, which Borba’s father managed and owned, until he eventually took over.

The Next Generation
Borba’s journey within this family business was almost predestined. Growing up as the only son among three sisters on the family dairy, his path was clear.

“It was always in my DNA,” he proudly says. His upbringing and the values imparted by his father and uncles — an unwavering commitment to family, faith and cows — provided a solid foundation for the dairy’s continued success.

“Hard work pays off,” he says, noting that was the key factor in the previous generation’s success.

Much like his parents’ generation, Borba and his wife find joy in raising their children on a family dairy. Their children participate in 4-H and sports but also head to the dairy to spend time learning from their father.

Borba and all of his cousins are continuing their father’s legacies.

“We still all get along,” he says. “I don’t have any brothers, so they’re like my older brothers, and we talk all the time and have a tight relationship.”

Borba is proud to say he is a cow guy, noting that he is still heavily involved in the day-to-day work on the farm, overseeing herdsman responsibilities, such as herd health vet checks.

Lumar uses a 70-30 ratio of beef to sexed semen usage on the milking herd, as Borba shares they are in growth mode.

“We are trying to recover from bad calf feeders,” he says. “I know how many heifers I need a month, and we’re exceeding that, and they’re staying alive.”

With incorporating SenseHub Dairy Youngstock [monitoring system] with the calves and increasing sexed semen usage, Borba plans to grow 300 cows this year and another 300 the following year, on their way to 2,400 head milking.

When it comes to technology, Borba’s were one of the first in their area to build a carousel parlor.

“Dad was all about technology and genetic gains,” he says. “We always used good bulls. We’ve bred AI forever, so he was always open to using new technology.”

(Merck Animal Health)

Embracing Change and Technology
Lumar Dairy is anything but stuck in the past. From adopting genetic advancements such as RFID tags, using sexed semen, to implementing SenseHub Dairy collars for herd monitoring, Lumar Dairy consistently embraces innovation. Although, Borba notes that balancing risk and innovation require courage and a willingness to adapt.

When the decision to adopt new technology in calf care arose, Borba was uncertain. The potential was clear, yet choosing the right technology was pivotal. The idea was simple: get involved in a trial program, and if the technology worked, fantastic; if not, there were no significant losses.

“I didn’t know which calf monitoring system I wanted to go with because it all was new technology,” he says. “I didn’t want to invest in the wrong one, but I knew SenseHub was good.”

Borba’s journey with SenseHub Youngstock began in October 2022, but it wasn’t until a year and a half later that the system was truly optimized. The initial phase underscored a critical insight: Even the best technology fails without proper operation, evidenced by challenges with inadequate calf feeders.

“Good technology cannot be managed by a poor calf manager,” Borba says, noting that he took over managing the calves until he could find the right person. That occurred nearly a year later when he hired Maria. According to Borba, Maria was not just an employee; she brought a unique combination of dedication and passion to her role, traits indispensable for the transition to modernized calf care.

“Maria lives and breathes our calves,” he says. “She saw what I was doing, trusted me, believed in our protocols, and the transformation was like day and night.”

(Merck Animal Health)

Borba said without using SenseHub, Maria is a good employee. But add the calf technology into the equation, and she is an excellent employee.

“She doesn’t have an ego and trusted the data coming off the reports,” he shares.

Since incorporating the technology and Maria, their calf death loss has dropped dramatically.

“The return on this investment is excellent. I was at 85 female dairy replacements when I started and now, I’m at 113,” Borba shares.

Borba incorporated SenseHub Dairy collars in October last year.

He says he likes both the reproduction and health benefits that the collars provide.

“Overall, our second service conception has increased, our breeding got better,” he says, noting his herd is still not immune to health issues, like pneumonia or scours. “But, we are able to address everything sooner.”

Borba says their death loss improved because calves were being treated on day one.

Going forward, Borba looks to progress and to constantly improve.

“You cannot start nitpicking, or you’ll go backwards,” he says, noting that he feels like the herd is in a good spot. “It’s just continuing to being consistent.”

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Managing Your Transition Pens May Be a Black and White Issue

Thu, 03 Jul 2025 17:00:00 GMT

Times have changed in the dairy industry.

An industry that used to have most of its profitability model driven by milk production suddenly has been thrust into a new age.

One might argue a black and white age.

Drought, retirement and years of challenging beef markets has feedlots turning to America’s dairies for help. Opening up their coffers at an unprecedented level, all to answer the growing shortage of beef cattle inventories.

This new cash infusion has ushered in a new age for dairy producers. In this age up to 2/3 of their dairy cow’s annual profit could be driven not by milk, but by the type of calf she has on “Day 0" of that lactation.

(American Farm Bureau Federation)

According to CattleFax and the American Farm Bureau Federation America’s dairy farmers have embraced this new model. Purchases of beef semen by dairy producers has gone from 2 million units in 2014 to almost 10 million in 2024. There are even whispers of some dairies changing their business model from milk as a primary production goal. Instead thinking of it as a secondary by-product of a system made to make as many dairy-beef cross calves as quickly as possible.

This mentality shift means that some of our dairies will see upwards of 50 to 75% of their cattle receiving beef semen. Creating ever increasing numbers of cross calves while using cheaper semen often with better conception rates.

However, there appears to be unintended biologic side effects from this shift. One of which is a backup in our pre-fresh pens.

Talk to any dairy and they will share with you the story of the dairy-beef cross that is 8-10 days overdue. They’ll often ask me what should we be doing with these animals? A complex question and best handled on a case-by-case basis with your herd veterinarian.

But it’s not these outliers that are causing issues on our dairies.

It’s the less noticeable example. Cows are going 2-7 days over the 278-day gestation we’ve come to expect from our Holstein cattle. These cows put undue strain on our pre-fresh pens; designed for 45–60-day dry periods.

Prefresh groups can quickly backup with dry periods going >70 days and pre-fresh pens becoming over-crowded. These small changes in cow flow cause significant issues in the post-fresh pen; risking 2-3x increases in fresh cow disease.

Beef and dairy animal gestation lengths.

(ICBP)

According to ICBP, the largest Beef Genomics database in the world, in general our beef breeds can be expected to go 4-12 days past the expected 278-day gestation. If our industry wants to truly embrace this model, then we will need to adjust our management.

A good start is to work with your herd vet and stud to investigate your current gestational averages by semen type. If you identify problem sires you can consider shortening dry period length for the affected groups, change semen breed type, or examine expanding your facilities to accommodate the 6-20% increase in pen duration.

Also, keep your ears and eyes open. Researchers continue to identify genetic markers for determining gestational length. It’s not inconceivable that in the coming months to years these markers, or an index combining them, could be added to your bull proofs.

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

Mon, 30 Jun 2025 21:07:17 GMT

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

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

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

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

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

Beef-on-dairy steers:

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

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

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

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

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

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

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

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

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

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

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

The findings were clear:

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

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

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

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

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

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

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

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

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

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

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

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

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

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To watch Cocepcion’s full webinar, click here:

Dairy Heifer and Calf Values Remain in the Stratosphere

Tue, 10 Jun 2025 13:03:10 GMT

Prices for dairy replacement heifers and beef-cross calves remain out of this world, with both springers and newborn calves reaching astronomical levels. Holstein springers topped out in May at $4,200 per head in Pipestone, Minn., and newborn beef cross calves exceeded $1,600 per head in Wisconsin. How far and long this launch into record territory will last remains to be seen, but beef-cross breeding will continue to make a big bang in the markets for the foreseeable future.

According to the National Association of Animal Breeders , more than 81% of beef semen sold in the U.S. in 2024 was purchased by dairies, and USDA estimates predict the inventory of U.S. dairy heifers over 500 pounds will be the lowest ever recorded.

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An Incredible Bird's-Eye Look at the State of the Dairy Industry

Tue, 20 May 2025 15:13:13 GMT

Editor’s Note: This is one article in a series that is included in the 2025 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
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The dairy industry is undergoing rapid transformation and innovation at an unprecedented pace. As part of its ongoing efforts to understand these shifts, Farm Journal recently conducted a comprehensive survey involving 400 dairy producers across the U.S.

These producers, representing herds ranging from 100 to 20,000 cows, provided valuable insights into their current operations and future outlooks.

Technology Integration

In an era where technology permeates nearly every aspect of life, the dairy industry stands at the forefront of this transformative wave. The integration of technology is no longer just an option; it has become a crucial step toward creating a more efficient and sustainable dairy industry. From feeding systems to health monitoring devices, technology helps dairy farmers optimize operations and ensure animal welfare.

A recent survey highlights a significant shift in the adoption of technology within the dairy sector. Remarkably, two-thirds of dairies now use at least one form of feeding technology. These innovations are designed to streamline the feeding process, providing precise nutrient delivery to livestock and reducing waste. The result is a noticeable improvement in both efficiency and sustainability.

Diversifying Revenue Streams

In today’s changing economic landscape, many dairy producers are finding innovative ways to sustain and grow their businesses. The key to survival during these turbulent times seems to be diversification.

Farm Journal’s recent survey reveals approximately one-quarter of dairy producers have embraced alternative land or dairy add-on revenue streams. This shift underscores the industry’s agility and adaptability as producers look for various avenues to boost profitability.

One strategy gaining traction is the beef-on-dairy operation. An impressive three-quarters of operators are now involved in at least one beef-on-dairy practice, with breeding and raising being the most common methods. Though there has been a decline in the number of producers raising animals under their beef-on-dairy operations over the past year, there is a notable increase in the sale of branded beef products. This shift highlights the evolving dynamics within the industry as producers adapt to market demands.

Next-Gen Transfers

A significant concern facing the industry today is the impending wave of retirements among dairy operators, many of whom have not established formal succession plans. This situation is becoming increasingly urgent, with surveys indicating that a quarter of these operators intend to retire within the next five years.

Contrary to the retirement trend, there is also a strong movement toward growth and expansion within the industry. Almost half of the operators express a desire to expand their operations in the near future. Such ambition suggests confidence in the industry’s potential and reflects a proactive approach to ensuring a sustainable future. At the same time, an equivalent number of operators are planning to maintain their current herd sizes, indicating a focus on maximizing efficiency and resource management.

Sustainability Program Awareness

Farm Journal’s recent survey reveals an array of insights regarding current sustainability practices and the prevailing awareness surrounding them. While the inclination toward adopting sustainable practices is reassuring, a deficiency in program awareness raises concerns that need to be addressed.

Encouragingly, over half of survey respondents (63%) reported participating in at least one sustainable practice. This trend is indicative of a growing societal shift toward environmental responsibility. Interestingly, larger operations, particularly those with substantial herd sizes and extensive acreage, tend to embrace sustainability more comprehensively. This trend is most pronounced in the Western region.

Reality of Workforce Shortages

A recent survey highlights the growing dependency of the dairy industry on non-family labor. For many respondents, non-family members consist of at least 50% of their workforce. This shift is indicative of broader changes within the industry as traditional family-run farms adapt to meet growing demands. However, hiring and retaining workers continues to be significant challenges. With evolving labor-related aspects indicating enduring challenges, the industry must explore viable solutions to continue thriving.

Despite the adoption of new technologies, the challenges of hiring and retaining a reliable workforce remain. Farmers must continue to balance the integration of technology with human labor, ensuring that both aspects work in harmony to drive growth and productivity. These changes suggest a long-term shift in how labor is approached, maintaining traditional farming values while embracing modern advancements.

Optimistic Horizon

The dairy sector is witnessing renewed confidence, energized by innovative strategies and fueled by a younger generation of forward-thinking dairy operators ready to embrace change. Their willingness to adopt advanced technologies and improved herd management techniques is reshaping the landscape of dairy farming. By integrating strategic solutions, these operators are setting a new standard that promises to uplift the entire industry.

According to surveys, 44% of producers plan to expand their operations in the next five years. This drive to scale indicates a strong belief in the trajectory of the dairy industry and its ability to thrive amid changing global dynamics.

The 2025 Farm Journal State of the Dairy Industry Report is available for download here .

Liver Abscesses Reduced with Beef-Cross Feeding Strategy

Tue, 22 Apr 2025 16:00:00 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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Boost Your Income By $250,000 with Smart Calf Management Tactics

Mon, 14 Apr 2025 13:55:36 GMT

With dairy replacements in tight supply and beef-on-dairy calves worth a small fortune, monitoring the health and management of livestock is just as crucial as keeping a close eye on financials. One of the often overlooked yet significant aspects of this is evaluating cattle death loss. According to Pauly Paul from Complete Management Consulting LLC, understanding metrics such as cull rate and death loss, and translating these into financial figures, can provide profound insights into a dairy farm’s financial health.

Farm Audits
Paul frequently conducts farm audits, collaborating with farmers to boost income and enhance financial control. At the Dairy Calf & Heifer Association (DCHA) Annual Conference in Denver, Colo., Paul shares insights from one of his audits, highlighting labor costs as a significant area of concern. The initial perception was that the farm was overburdened with labor costs, but a deeper dive revealed substantial loss in calf numbers.

“When we do audits, we typically go through the financials. We go through the day-to-day operations. We look at what’s going on everywhere on the dairy. We spend time with the managers,” he says.

The audit uncovered that many heifers never reached the milking herd, with losses reaching as many as 300 calves annually. By recommending a shift to beef-on-dairy calves, Paul demonstrates how the farm could potentially add approximately $270,000 in revenue.

Exploring Other Profitability Scenarios

In a different scenario, a farm experiencing a 15% death loss in calves was financially stable due to diversified income streams, boasting a profit of $2.5 million last year. However, Paul poses an interesting question: “What would happen if they bred for 10% more black calves?” By increasing the production of these calves, the farm could potentially generate over $200,000 annually and ultimately decrease their death loss.

Such examples shed light on common pitfalls affecting dairy farm profitability.

5 Pitfalls Hindering Profitability
1. High Death Loss: A high death loss in calves can significantly impact financial performance.

2. Uncertain Costs: Not knowing the true cost of raising calves and heifers can lead to mismanagement.

3. Over-Investing in Infrastructure: Investing too heavily in equipment and labor for an excessive number of heifers can drain resources.

4. Inadequate Financial Planning: Buying replacements without setting aside the necessary funds can be financially detrimental.

5. Not Maximizing Income: Raising too many replacements and failing to capitalize on the income from black calves can hinder profitability.

Key Questions for Dairy Producers
To address these challenges, Paul advises producers ask themselves the following:

• Calf Management: How effectively do you raise your calves? What is the actual death loss rate?

• Cost Analysis: What are the exact costs of raising replacements, including feed costs both purchased and grown?

• Daily Cost Calculation: What is the daily expense of raising replacements, including feed, labor, vet/medicine and breeding?

• Breeding Strategy: How many cows should be bred to beef to optimize profitability?

Making Strategic Decisions
Producers need to assess whether they excel at raising calves or if outsourcing might be more cost-effective. They should consider:

• Raising Calves: Are you the best at raising calves, or is it more feasible to let others handle it?

• Cost Efficiency: Can others raise replacements more economically than you can?

• Purchasing Replacements: Is it better to buy superior replacements at a lower cost than raising them yourself?

By regularly evaluating these factors and adopting a strategic approach, dairy farmers can better navigate the complexities of farm management and improve profitability. Keeping these considerations at the forefront of operations ensures a robust, financially sustainable future for dairy farms.

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5 Must-Do Steps for Raising Healthy Beef-on-Dairy Calves Before They Leave the Farm

Thu, 27 Mar 2025 13:36:27 GMT

With beef-on-dairy calves in high demand and day-old prices sky high, ensuring these crossbred calves get off to the best possible start has become a must for dairy producers. Not only does proper care improve calf health, but it also maximizes their market value and long-term performance. During the I-29 Moo University Dairy Beef Short Course, Dr. Gail Carpenter, state dairy extension specialist and assistant professor at Iowa State University, says those first few days are make-or-break for setting these calves up for success.

Here are her top five priorities dairy producers should focus on:

1. Breed the Right Calves in the First Place
Before a beef-on-dairy calf is even born, Carpenter notes that the right breeding decisions make all the difference. Choosing the best cows and bulls helps ensure easy calvings, healthy calves, and animals that bring top dollar down the road. For her, this means creating calves who hit the ground strong, grow well, and meet market demands—whether through feedlot performance or carcass quality. Therefore, a little planning upfront goes a long way in setting up both your dairy and beef programs for success.

“Beef-on-dairy is an inventory management practice first and foremost,” Carpenter says. “It’s easy to be pulled towards making a lot of beef on dairy calves. But don’t forget, you also have to keep milking cows, so make sure that you’re protecting your replacement numbers as well.”

Beyond determining the ideal number of beef-on-dairy calves, she emphasizes the importance of selecting the right dams and bulls.
“Whether it’s using [tools like] genomics, health data, or parent averages, it’s essential to breed the right number of calves and select the right cows for beef semen,” she adds. “Make sure you’re choosing for traits like calving ease and conception rate. I think we’re going to see a bigger drive toward breeding for more carcass traits and producing a high-quality product.”

2. Prioritize Maternity Management
Next on Carpenter’s list is a clean and well-managed maternity area.

“Keeping calving pens clean, ensuring cows have access to clean water, and avoiding overstocking are fundamental practices,” Carpenter notes. “Whatever your maternity system is—whether it’s just-in-time calving or a designated maternity pen—manage it well and keep a close eye on those cows.”

Beyond cleanliness, attention to detail in maternity care makes a difference.

“Make sure you’re cleaning your tools, using them productively, and maintaining calf housing and bedding properly,” Carpenter adds. “Bottles, nipples, and all feeding equipment should be kept clean to ensure the best start for your calves.”

Producers should be mindful of monitoring cows closely for signs of labor and assisting when necessary. Using clean equipment for calving assistance, ensuring newborns receive immediate care, and minimizing stress in the maternity area all contribute to better outcomes. Carpenter notes that a well-managed maternity area helps reduce disease risk and ensures calves are born into a safe, healthy environment.

3. Ensure Proper Colostrum Management
Colostrum is the foundation of a calf’s immune system and is crucial for setting the stage for good health. Without enough high-quality colostrum, a calf’s ability to fight infections and thrive early in life is compromised.

“Colostrum is going to be critical whether it’s for your replacements or your beef-on-dairy calves-use the same high-quality colostrum across the board,” Carpenter says. “If volume is an issue, colostrum replacers can be a valuable tool to make sure calves get the antibodies they need.”

Providing colostrum quickly after birth is essential, as the calf’s gut is most open to absorbing antibodies within the first few hours. The sooner you can get it into them, the better their chances are for developing a strong immunity and preventing future health issues.
Key colostrum practices include:

Ensuring calves receive high-quality colostrum within the first few hours of life. This is crucial for the calf to get the right amount of antibodies.
Using a Brix refractometer to confirm colostrum quality (ideally 22% or higher). This helps you ensure the colostrum is rich in immunoglobulins, which are vital for the calf’s immune system.
Feeding colostrum at the correct temperature to maximize absorption. Warm colostrum (around 100¬∞F) ensures that calves can properly absorb all the beneficial nutrients.

4. Implement a Solid Pre-Transport Health Plan
Before a calf leaves the farm, it’s crucial to ensure it receives all the necessary health interventions to set it up for success in its next stage of life. Having a solid pre-transport health plan in place not only supports the calf’s health but can also help meet buyer requirements and avoid any issues during transport.

“Vaccination protocols vary, so it’s essential to work with your vet and buyers to develop a plan that suits your operation,” Carpenter notes.

Beyond vaccinations, several other practices can help ensure calves stay healthy during their move:
Common pre-transport practices include:

Administering vaccinations based on the farm’s disease risks. Vaccinations should be tailored to protect calves from the most common diseases in your area or based on specific risks your operation faces.
Navel dipping to prevent infections. Newborn calves are especially susceptible to infection, so dipping the navel in an antiseptic solution helps prevent bacterial infections from entering through the umbilical cord.
Ensuring calves are well-fed and hydrated before transport. Well-nourished, hydrated calves are less stressed and more resilient during transport. Make sure they’ve had a good meal and are drinking before leaving the farm.

5. Maintain a Clean, Comfortable Environment
Creating a comfortable environment for your beef-on-dairy calves is one of the simplest yet most impactful ways to ensure their health and long-term performance. A calf’s first few days are crucial, and the conditions they are raised in directly affect their growth, immunity, and overall well-being.

“Keeping the calf’s environment clean and well-ventilated, ensuring calves stay warm and dry, and minimizing stress are all things within a producer’s control,” explains Carpenter.

To truly optimize calf comfort, producers should focus on several areas:

Provide deep, dry bedding to help regulate body temperature. Bedding plays a big role in keeping calves warm and comfortable. Fresh, dry bedding such as straw or shavings shavings can help calves maintain their body temperature. Change bedding regularly to ensure it stays clean and dry, as damp bedding can lead to problems like pneumonia or scours.
Maintain proper airflow to reduce respiratory disease risk. Good ventilation is essential for calf health. Poor air circulation can lead to respiratory issues, which are common in calves and can impact their long-term health. Make sure the housing area is well-ventilated but free from drafts, which could cause chilling.

Setting Calves Up for Success
Managing beef-on-dairy calves isn’t just about checking off a few boxes—it’s about paying attention to the little things every step of the way. By focusing on these five key priorities, farmers can give their calves the best start possible, making sure they stay healthy and strong for their next chapter of life.

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

Tue, 18 Mar 2025 13:19:02 GMT

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

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

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

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

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

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

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

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

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

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

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Where Will the Replacement Heifers Come From?

Tue, 25 Feb 2025 15:05:33 GMT

An unprecedented shift in the U.S. dairy cattle population could signal uncertainty ahead in terms of milk production, cow numbers, and prices – for both the milk and the animals.

At the center of the current conversation: heifers, and more specifically, lack of them. In the most recent USDA Cattle Inventory report, released January 31, 2025, the inventory of dairy heifers weighing 500 pounds or more totaled just 3.914 million head. That’s the lowest count for that population since 1978.

Included in the total are heifers expected to calve into the milking herd in 2025, estimated at 2.5 million head. That figure has dropped precipitously every year since 2017, when about 600,000 head of additional heifers freshened. The current number of heifers expected to calve is also the lowest since the USDA began tracking that figure in 2001.

The shift in heifer population nearly identically mirrors the adoption of beef crossbreeding to add more value to non-replacement dairy cattle. It’s currently doing just that. With the U.S. beef cow herd size also hovering at near-historic, low levels, demand for those beef-cross calves is high, leading to almost-unheard-of prices of $1,000/head or more for newborn calves.

Likewise, springing heifers are scarce -- and expensive -- on the open market. Holstein springers started topping $4,000/head on the high end in Pipestone, Minn. toward the end of 2024. And at the Turlock Livestock Auction Yard’s January Dairy Video Sale in Turlock, Calif., potloads of Holstein and Jersey springers brought an average of $3,650-3,700 and $2,750-2,900/head, respectively.

Tight heifer supplies mean herds are generally creating just enough heifers to meet their projected replacement needs. Meanwhile, the nation’s milking herd is not growing, continuing to hover at around 9.35 million head.
What remains to be seen is whether an aging dairy herd will affect total milk production if producers hang onto cows longer before marketing them for beef. Any hiccup, like bird flu or another unforeseen challenge, could leave producers scrambling to maintain herd size.

Finally, while many factors remain in play, one benefit of the changing supply-and-demand dynamic could be a boost in milk prices. The all-milk price forecast for 2025 is $23.05 per hundredweight, up about 50 cents year-over-year. A shift in heifer supplies will take at least two years to happen, so those benefits could be enjoyed relatively long term.

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Dairy’s Gold Rush: Replacements Heifers and Beef-on-Dairy Calves

Thu, 13 Feb 2025 15:47:08 GMT

The dairy cattle market is currently experiencing an unprecedented surge in demand, creating a bustling atmosphere in the industry. As the competition heats up, market players are closely observing what is currently trending – is it beef-on-dairy calves or the traditional dairy replacements and fresh cows?

The answer is both, as beef-on-dairy calves are going for astronomical prices. But, according to recent insights from TLAY Dairy Video Sales, dairy replacement heifers and fresh cows have become an exceptionally hot commodity.

By hosting an online video auction on the first Friday of every month, TLAY Dairy Video Sales have established a platform where semi-loads of dairy cattle from across the U.S. find their rightful owners. Jake Bettencourt, the manager of TLAY Dairy Video Sales, stressed the intensified demand for cattle.

“In 2025, we see a completely different landscape compared to previous years,” Bettencourt explains.

Prices that seemed stable in 2022 and 2023 have now skyrocketed. Illustrating this point, Jersey springers, previously ranging between $1,400 and $1,500, have leaped significantly, affecting the cost-effectiveness of replacements.

Unpacking Current Price Trends
This evolution in market prices is evident in the recent results from TLAY Dairy Video Sales:

• Jersey fresh heifers command prices from $2,900 to $3,100.

• Jersey cross fresh heifers average between $3,100 to $3,200.

• Holstein springers average between $3,350 to $3,700 (many carrying beef-on-dairy cross calves)

• Jersey springers $2,850 – $3,000

• Holstein fresh cows range from $3,600 to $3,775.

• Mid-lactation, confirmed pregnant Holstein cows fetch around $3,500.

Bettencourt points out a growing trend: cows carrying beef-on-dairy calves are realizing more value than those carrying sexed calves.

The Nationwide Dairy Heifer Inventory Crunch
In addition to the heated demand, the nationwide dairy heifer inventory is under significant strain. The recent USDA annual Cattle report underscores this scenario, revealing a critical shortage in the available dairy heifers as of January 1. Despite a slight upward adjustment in 2024 estimates, the inventory remains the lowest since 1978 with only 3.914 million head available – a 0.9% decrease from the prior year.

This scarcity is further exemplified by the high prices fetched by two loads of Holstein open heifers at 475 lbs., that were sold off by TLAY, each bringing between $1,800 and $1,850. And a load of Jersey open heifers from Oregon at 410 lbs. sold for $1,625 each and one load of Jersey open heifers from Idaho sold at 600 lbs. at $1,825.

Market Predictions and Insights
Phil Plourd, president of Ever.Ag Insights, says that the USDA’s Cattle Report published last month underscored what we all knew—and that is we don’t have a lot of heifers on hand. The ratio of replacements to milking cows is at 41.9%, the lowest level since 1991.

However, Plourd points out that financial incentives to the producer haven’t changed.

“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. 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,” he says.

The dairy industry’s landscape is an intriguing blend of challenges and opportunities. As Plourd anticipates, changes might arise as beef and dairy producers opt to retain 5% to 10% more heifers, providing a buffer even if incentives do not align. Navigating this intricate scenario requires a keen understanding of evolving market conditions and strategic foresight. As the industry moves forward, these shifts promise to dictate the path ahead for dairy cattle stakeholders.

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Rising Beef Prices and Demand Fuel Big Change for the Dairy Industry

Thu, 13 Feb 2025 15:30:00 GMT

The beef cattle industry is evolving, and dairy producers are playing a pivotal role in that transformation. At the 2025 CattleCon, hosted by the National Cattlemen’s Beef Association in San Antonio, Texas, Lance Zimmerman, a senior beef analyst at RaboBank, joined Agri-Talk host Chip Flory to break down the latest USDA Cattle Inventory Report.

Beef Demand Drives More Crossbreds
Despite the U.S. beef cattle inventory hitting a 64-year low, strong consumer demand has propelled beef prices to record highs throughout 2024 and into 2025.

“We’re sitting here today coming out of 2024 with higher per-capita beef consumption than we had in 2022, and we thought that was the cycle high. And yet, we are pushing record-high beef prices—demand is exceptionally good,” Zimmerman noted.

With beef prices remaining strong, dairy producers have fine-tuned their repro programs to capitalize on these market conditions. Many are utilizing sexed dairy semen on their highest-performing cows to ensure a steady supply of replacement heifers while breeding the rest of the herd with beef semen. This approach results in crossbred calves better suited for beef production, offering improved feed efficiency, enhanced carcass characteristics, and greater market appeal compared to straight dairy steers.

The Ripple Effect
Even as more dairy producers adopt beef-on-dairy breeding strategies, overall calf numbers have remained stable. “We had a very prolific cow herd last year,” Zimmerman noted. “And I think part of that is due to the beef-on-dairy mix. We’re keeping these cattle viable longer and managing them more intentionally with better health, genetics, and overall care throughout the system.”

One notable outcome of this shift on the dairy side of the equation is a tighter supply of dairy replacement heifers, which has contributed to rising prices. “We have dairy replacement heifers that have hit $4,000 a head in some areas,” Zimmerman said, emphasizing the supply constraints caused by more selective breeding practices.

USDA data confirms this supply squeeze. The latest annual Cattle Report revealed that as of January 1, only 3.914 million dairy heifers were available nationwide—a 0.9% drop from the previous year and the lowest inventory recorded since 1978. Additionally, USDA made a significant downward revision to its 2024 estimate, cutting its projection by 108,000 heifers to 3.951 million.

Another factor influencing cattle supply is the ongoing decline in veal production. “We’ve seen a long-term trend of fewer calves going into veal production, and that’s expedited in recent years,” Zimmerman noted. This shift means that more dairy progeny calves are staying in the fed cattle supply, further reinforcing the beef-on-dairy movement.

Beef Demand Holds Strong
While the genetic landscape of the beef supply chain is transforming, consumer demand remains resilient. “The strength of demand has been incredible—beef demand is at 30-year highs,” Zimmerman said. He points out that, despite rising prices, beef remains relatively affordable compared to historical income ratios. “In 2014-15, the average consumer had to work 14 and a half minutes to afford a pound of beef. In 2024, they only have to work 13 minutes.”

With consumer demand for beef remaining strong, the beef-on-dairy sector has become a crucial asset to the beef industry. It has also helped dairy farmers diversify by adding a second source of income during a time when milk price margins continue to remain tight.

Click here to hear Zimmerman’s full conversation with Chip Flory on Agri-Talk.

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

Wed, 05 Feb 2025 16:04:57 GMT

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

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

(Lindsey Pound )

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

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

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

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

A Reliable and Consistent Supply of Cattle

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

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

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

The Value of Traceability

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

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

Challenges Ahead

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

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

A Long-Term Solution

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

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Beef-on-Dairy: This Iowa Dairy's Strategic Approach for Success

Thu, 21 Nov 2024 14:20:00 GMT

The beef-on-dairy sector is booming – and it doesn’t show any signs of slowing down. What started as a trend more than a decade ago has quickly grown into a steady and reliable profit stream for dairy farmers across the country. Just ask Ted and Megan McAllister, part owners of McAllister Family Dairy, LLC., in New Vienna, Iowa.

Roughly six years ago, Ted and his brother, Rob, who co-owns the operation, decided to make a strategic investment in their herd’s reproductive program. Before this shift, the operation still relied heavily on herd bulls. Today, the farm utilizes 100% artificial insemination and has implemented genomic testing and Allflex activity monitors onto their 280-head herd of Holsteins and Jerseys. This significant shift in their breeding approach not only elevated their herd’s genetic potential, but also opened the door to using beef semen on some of their lower-performing cows

Betting on Beef-on-Dairy

With dairy bull calves fetching too little money to justify raising them, the McAllister’s saw using beef semen as a logical step to improve their operation’s profitability. By incorporating beef genetics, they could enhance the value of their bull calves, tapping into a more profitable beef market.

McAllister Family Dairy, LLC.

(McAllister Family Dairy, LLC.)

“But what really drove our decision to start incorporating beef semen into our breeding program was genomic testing,” Megan says. “We wanted to fully take advantage of that technology and create the best replacements possible. That meant managing our heifer inventory and not raising anything extra.”

With guidance from Dave Erf, a reproductive consultant from Zoetis, a genomic based breeding plan was put in place and today the McAllister’s use beef semen on 60% of their lactating animals and 25-30% of their heifers. This shift in their breeding strategy has made up the foundation of the farm’s current reproductive program.

Knowing Their Numbers

When the McAllister’s went all-in on beef-on-dairy, they recognized the importance of precisely managing their herd numbers. This required them to pinpoint exactly how many replacement calves were needed, determining how many first-calf heifers should join the milking herd, and calculating the ideal monthly cull rate.

“We ship our milk to Prairie Farms and operate within their base system,” Ted notes. “So, we are kind of capped on the amount of milk we can produce. That means we only need to create a few replacements each month for the herd to remain at its current size.”

Knowing they were limited on the amount of milk they could produce, the McAllister’s worked alongside Dave to create a yearly genetic audit to help give them a better snapshot of their genetic progress. Through this audit, they set targets to produce about 12 heifer calves monthly while maintaining a 30% cull rate and keeping 30% of the herd as first-calf heifers.

“We really look forward to that audit each year because it allows us to see if we are hitting our benchmarks,” Megan says. “It’s fascinating seeing those numbers and it allows us to be really picky with which animals we are choosing to make replacements from.”

In addition to tracking genetic progress, the audit and genomic results enable the team to make more precise breeding decisions. Using these insights, the McAllister’s select replacements who are expected to be the most profitable in the lactating herd. This strategy allows them to prioritize cows with strong longevity and productivity, while reserving beef semen for animals less likely to stay in the herd long-term.

“When we know an animal is going to get bred to beef, we try to pick angus beef sires that have higher fertility and better calving ease traits,” Ted adds. “We have a steady flow of elite replacements being born each month, and the beef-on-dairy calves make up the rest.”

Megan notes that no matter if the calf is a crossbred or a future replacement, every calf gets treated the same.

McAllister Family Dairy, LLC.

(McAllister Family Dairy, LLC.)

“Everything gets two feedings of colostrum before being switched to milk replacer,” she says. “We raise these calves for about 1-2 weeks then sell them at our local sale barn. We’ve been really happy with how these calves have turned out and what they are selling for.”

Adding Another Profit Line

For the McAllister’s, incorporating beef-on-dairy has been a financial game-changer for their operation. This has especially held true over the past 12-24 months as beef prices have seen a significant increase.

McAllister Family Dairy, LLC.

(McAllister Family Dairy, LLC.)

“We wouldn’t be where we are at today without these beef-on-dairy calves,” Megan says. “They’re easily our third largest source of income behind milk and cull cows. From our perspective, we have to breed cows anyway, so you might as well make more profitable calves – and it’s certainly working for us.”

Labor savings has also been a significant benefit. Raising fewer replacement heifers has reduced labor demands in the calf barn and has freed up pen space for older heifers animals.

“We only rely on a few outside people for help,” Ted notes. “Otherwise, it’s just the three of us running the ship. Having fewer calves to take care of and less overcrowded pens to manage has really helped us from a labor standpoint.”

This shift in management has allowed the McAllister’s to concentrate more on raising high-quality replacements for their future milking herd while also saving some time.

“Our time is our most valuable asset,” Megan adds. “Spending less time caring for calves has freed up some hours for other parts of our life – whether it’s focusing on a different area of the farm or having a little extra time for ourselves. That time saved is invaluable.”

A Look at the Market Ahead

McAllister Family Dairy, LLC.

(McAllister Family Dairy, LLC.)

From coast-to-coast, dairy producers like the McAllister’s have capitalized on the high prices beef-on-dairy calves have provided. And according to Dr. Woerner, animal and food science professor at Texas Tech University, these prices are likely to remain elevated for the foreseeable future.

“Beef-on-dairy calves have contributed tremendously to the bottom lines of the dairies producing them. And the good news is that the forecast looks really good for that trend to continue,” Woerner explains. “This is primarily because of the shortage in traditional beef cattle numbers. But beyond that, beef-on-dairy cattle have carved out a stable, respected place in the market, proving their value to both buyers and packers.”

With ongoing extreme drought conditions and feed shortages affecting various parts of the country, Woerner notes that the native cattle herd is unlikely to rebound any time soon.

“Most models suggest we’re looking at a minimum of three years before a significant rebuild begins, with some projections extending up to five years,” Woerner adds. “For dairy farmers, this means that every straw of beef semen used on a dairy cow today will likely yield calves that continue to bring premium prices over the next few years.”

Woerner also highlights that the demand for beef-on-dairy calves isn’t solely due to the shortage in traditional beef cattle. Some of their popularity also stems from their carcass quality and sustainability impacts.

“These animals are entering the market steadily and have become highly efficient in the feedlot, with nearly all grading choice or higher,” Woerner says. “Packers are paying attention to that. Additionally, the beef-on-dairy crossbred offers a unique advantage for companies committed to reducing their carbon footprint, as these animals are among the easiest options for carbon accounting and securing carbon credits. This sustainability factor is significant; in fact, it may be the very reason these cattle continue to command high prices, even as the beef cattle supply eventually rebounds.”

While it’s clear that beef-on-dairy crossbreds offer substantial benefits to both packers and dairy producers alike, Woerner points out one notable drawback: a higher incidence of liver abscesses.

“The one major downside to these crossbred cattle is still the liver abscess issue,” Woerner says. “They are a costing packers time and money for them to deal with. But there is so much research being done, so the presence of liver abscesses in these cattle should improve as time goes on. And if we’re able to get the level of liver abscesses down to that of the conventional population, then I truly believe these cattle could be in higher demand than native beef.”

A Lasting Strategy

For the McAllister’s, incorporating a beef-on-dairy into their breeding program has been a transformative aspect to their operation. From increasing profitability to cutting down on labor needs, the benefits of crossbreds have been plentiful. And when asked if they would consider discontinuing it, their answer was a definitive “no.”

“It fits into our plan so perfectly,” Megan says. “I couldn’t imagine dairy farming today without it.”

Woerner believes this sentiment rings true for dairies across the nation, as beef-on-dairy continues to prove its value in both the beef and dairy industries.

“It’s proving to be more than just a trend—it’s becoming an essential part of the model for dairies and a critical piece of the future for both sectors,” Woerner says. “I’m confident that beef-on-dairy is here to stay.”

Social

Follow the McAllister family’s journey by connecting with Megan on Facebook, Instagram and TikTok at @Megan_DairyGirl

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

Tue, 17 Sep 2024 20:27:30 GMT

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

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

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

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

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

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

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

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

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The Impact of Beef x Dairy Calves

Mon, 09 Sep 2024 15:49:36 GMT

The most common question I get at market outlook presentations is “What is the market impact of all these beef on dairy calves?” There seems to be a perception that these calves represent an additional number of cattle beyond the traditionally available cattle inventory data.

Historically the dairy industry bred all cows to dairy genetics, using the 50 percent heifer calf crop to ensure sufficient heifers from which to select the best genetics for the milking herd. The male calves and culled females became part of the beef industry. The growing production of beef x dairy crossbred calves in recent years is the result of increased commercial feasibility of sexed-semen technology. With sexed-semen, dairy producers can target the production of dairy replacement heifers in a subset of genetically superior cows. This frees up the remaining dairy cows to utilize beef genetics and produce crossbred calves.

Straightbred dairy steers and heifers are heavily discounted in beef markets because the light muscled animals produce carcasses with less desirable muscle conformation. Beef x dairy crossbred calves are significantly more valuable because the resulting carcasses have improved muscling and carcass conformation. Straightbred dairy calves not used for milk replacements previously entered the beef market simply as a residual, with limited or, sometimes no, value in the beef industry. In contrast, beef x dairy cross calves are a significant source of revenue for dairy producers and are subject to management choices regarding genetics and production. Numbers are uncertain but a significant percentage of potential non-replacement dairy calf production today are beef x dairy crosses.

USDA-NASS estimated the Jan. 1, 2024 inventory of dairy cows at 9.36 million head. The dairy herd is relatively stable and has only varied by 130 thousand head, or 1.4 percent, from maximum to minimum in the last ten years. The dairy industry contributes an average of roughly 26 percent of the total U.S. calf crop each year. The contribution of the dairy industry to beef production does not change significantly year to year although the relative share of dairy in beef production increases slightly when the beef industry declines cyclically. Growth in production of beef x dairy crossbred calves does not represent any net additional production of cattle but rather a change in the genetic composition of dairy calf production.

Dairy production, including beef x dairy calves, are included in the cattle inventory and production data that are routinely available. Calf crop, cattle on feed, and slaughter data and other data include beef and dairy sectors and therefore already account for the beef x dairy calves now being produced in the dairy sector. Beef x dairy calf production is not having much impact on total beef production and market prices beyond what is already considered in market analysis. There are some impacts in specific meat markets because the beef cuts from beef x dairy carcasses may have access to markets previously closed to dairy beef. Arguably, the biggest impact of beef x dairy production is the blurring of the historical demarcation between beef and dairy sectors in the U.S.

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

Wed, 28 Aug 2024 17:09:42 GMT

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

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

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

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

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

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

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

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

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

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

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

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Embryo Surrogacy – The Next Dairy Niche?

Thu, 15 Aug 2024 15:50:18 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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