News Platform

Beef-on-Dairy Trend Gains Momentum: Genetics, Market Dynamics, and Industry Insights

3 days ago

00:00
--:--

Executive Summary

  • Beef-on-dairy crossbreeding is becoming increasingly popular as a means for dairy farmers to generate additional income and supplement the beef supply.
  • Research indicates that Angus, Charolais, and Simmental breeds show greater average daily gain compared to other breeds when crossbred with Holstein cows, though overall breed influence on feedlot performance and carcass outcomes is relatively small when proper standards are applied.
  • While beef-on-dairy offers benefits like sustainability and tenderness, challenges remain, including increased product loss during slaughter due to abscessed livers and gut loss.

Event Overview

The practice of breeding beef cattle with dairy cattle, known as beef-on-dairy, is gaining momentum within the agricultural industry. This trend is fueled by the potential for increased profitability for dairy farmers, who can receive higher prices for beef-on-dairy calves compared to purebred Holstein bull calves. Simultaneously, beef packers are looking to the dairy industry to supplement beef supplies amid tightening beef cattle numbers. Genetic research and industry innovations are playing a crucial role in optimizing the beef-on-dairy process, though challenges related to carcass quality and product loss remain.

Media Coverage Comparison

Source Key Angle / Focus Unique Details Mentioned Tone
Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum Increased profitability for dairy farmers through beef-on-dairy crossbreeding, genetic considerations for breed selection, and market dynamics. Penn State study comparing feedlot performance and carcass characteristics of different beef breeds crossed with Holstein cows. Data on auction prices for dairy-beef feeder and slaughter cattle compared to beef and dairy cattle. Informative and optimistic, highlighting the potential benefits and growth of the beef-on-dairy trend.

Key Details & Data Points

  • What: Crossbreeding beef cattle with dairy cattle to produce beef-on-dairy animals for increased profitability and to supplement the beef supply.
  • Who: Dairy farmers, beef producers, researchers at Penn State, Wulf Cattle (genetics company), Cargill Protein (packing industry), Angus Genetics, National Association of Animal Breeders (NAAB), USDA’s Agricultural Marketing Service, CoBank, and New Age Custom Farming.
  • When: The trend has been gaining momentum in recent years. Penn State study results published in March 2024. USDA’s Agricultural Marketing Service began tracking 'dairy/beef' category in March 2024.
  • Where: United States, with specific mentions of Pennsylvania (Berks, Chester, and Lancaster counties) and Wisconsin (New Age Custom Farming).

Key Statistics:

  • Domestic beef units used on dairies increased by nearly 1 million units in 2023 (NAAB data).
  • Dairy-bred fed slaughter in the United States has reached more than 4 million head annually (CoBank report).
  • Auction prices for dairy-beef feeder cattle averaged $216/cwt (slightly higher than dairy but lower than beef).
  • Dairy-beef slaughter cattle prices at auction averaged $175/cwt (virtually equal to beef).
  • Dairy-beef animals retain 81.3% of their value from feeder to slaughter, compared to 72.1% for dairy and 69.6% for beef (CoBank report).

Analysis & Context

The beef-on-dairy trend represents a significant shift in the agricultural landscape, driven by economic factors and evolving consumer demand. Dairy farmers are increasingly viewing beef-on-dairy as a viable revenue stream, while beef producers are leveraging dairy herds to augment beef supplies. Genetic research plays a vital role in optimizing breed selection for desired carcass traits and feedlot performance. However, challenges remain in terms of carcass quality and product loss during slaughter. The long-term success of beef-on-dairy will depend on addressing these challenges and further refining genetic strategies and management practices.

Notable Quotes

When the dairy industry first started doing beef-on-dairy, it was just, ‘Give me a black bull.’ There was no concern about the quality of the beef carcass. The attitude was, ‘Anything is going to be better than a purebred Holstein bull.’
— David Erf, a U.S. dairy technical service geneticist with Zoetis (Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum)
Some dairy farmers can get twice as much money for an Angus cross than a purebred Holstein bull calf.
— Andrew Greenleaf, a Select Sires reproductive specialist (Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum)
Not just any beef bull will flip a dairy cow. The major problem with the straight dairy animal is its lack of muscle and poor carcass confirmation. We’re able to put some product on the carcass to give it some rib eye and a nice size.
— Jerry Wulf, Wulf Cattle (Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum)
One plant had to condemn 76,000 outside skirts, which is typically meat used in fajitas, because an abscessed liver was attached to them. That’s $2 million that the producer and Cargill lost in value. It’s also when general managers started calling and saying, ‘We have an opportunity to fix this.’
— Glen Dolezal, assistant vice president of new technology for Cargill Protein (Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum)
For feedlots, owning cattle that sustain their price value from feeder to slaughter is important for business financial health.
— Abbi Prins, an industry analyst in CoBank’s Knowledge Exchange research division (Unlocking Profit Potential: Beef-on-Dairy Is Gaining Momentum)

Conclusion

The beef-on-dairy trend is reshaping the dairy and beef industries, offering new opportunities for dairy farmers and helping to supplement beef supplies. While genetic research and industry innovations are driving progress, challenges related to carcass quality and product loss need to be addressed to ensure the long-term sustainability and profitability of this practice. Continued monitoring of market dynamics and collaboration between stakeholders will be essential for optimizing the beef-on-dairy process.

Disclaimer: This article was generated by an AI system that synthesizes information from multiple news sources. While efforts are made to ensure accuracy and objectivity, reporting nuances, potential biases, or errors from original sources may be reflected. The information presented here is for informational purposes and should be verified with primary sources, especially for critical decisions.