By Angela Breneman
Undoubtedly, beef on dairy has taken the American beef market by storm over the last few years. It has provided a means of diversity for the dairy industry and supplied significant growth and sustainability for both cattle feeders and beef packers. While native beef cattle numbers across America have reached an all-time low, CattleFax estimates that 3.2 million beef on dairy cattle will grace the market in 2024. Critically, beef on dairy cattle have helped fill the gaps in the needs of both beef and dairy industries while also filling the holes in the producer's bottom line. The beef on dairy sector has focused on many improvements over the years to create a more desirable product for producers and packers. However, many dairy producers still wonder where this value-added animal fits into their operation. This article will discuss the market outlook, management strategies for incorporating beef into your dairy, and marketing outlets for these cattle.
In today's industry, $900 beef on dairy calf prices are hard for the dairy to turn away from. That is why, in the last year, bull studs sold a record 9.4 million units of beef semen, and 84% of those units landed on dairy farms, according to Farm Progress. But, the question on everyone's mind is, "Is this a trend, or are these calves and these prices here to stay?" CattleFax projects beef on dairy crosses to rise to 5 to 6 million head by 2026 and would comprise about 15% of the fed cattle market. By creating this cross, the industry has created more value for the progeny from the dairy, allowing the producer to generate more money. Holstein cattle are known for their good marbling, but where they fall short is in loin and ribeye consistency. By adding beef genetics, we are not only increasing growth and feed efficiency, but we are also producing a more desirable carcass by improving on the dairy cattle's carcass pitfalls. This leaves a product that is not only more desirable to the packers but to the consumers as well. Overall, we have begun producing an animal that is much more in demand for the beef industry, and its popularity is likely to grow throughout the coming years.
While the calf paychecks are a nice incentive, there are other things to consider before incorporating beef semen into your breeding program. It is best to view these calves as a quality, value-added product. This means we must make good genetic considerations for the best possible mating opportunities. Most farms are capitalizing on using sexed dairy semen to improve heifer genetics, which frees up the remaining cows to produce these beef on dairy crossbred calves. This is a good strategy for producing good quality beef crosses while maintaining heifer inventories and increasing the genetic potential in your dairy herd. When selecting beef bulls, focusing on conception rate, frame size, and ribeye area is key. Even a 1% loss in conception rate can cost a dairy $25 per cow, according to Dairy Herd Management. Try to focus on bulls with acceptable conception rates and worry less about calving ease. We can be more forgiving regarding calving ease because dairy cows naturally give birth to larger framed calves. Regarding frame size, the most common issues within the feedlots are too many beef and dairy crosses with too large frame sizes. A larger frame takes more feed and time to finish, and bone weighs more than muscle, leaving more waste and less product at slaughter. Focusing on bulls with a frame score of 5 or under will lead to more moderate-sized cattle that are more feed efficient. Finally, analyzing bulls for ribeye area characteristics is also important. Remember we said Holsteins fall short on ribeye and loin quality? Selecting bulls with good ribeye EPDs will help improve carcass quality and consistency.
So, you've weighed the pros and cons and have decided to incorporate beef semen into your dairy. Where will these calves go? There are a few options to consider. The most common market, especially in the dairy industry, is to sell newborn calves. While this is uncommon with native cattle, the dairy industry has capitalized on marketing 1–5-day-old calves. This is probably the easiest and most labor-efficient way to market your beef and dairy-crossed calves, but you must treat them like a dairy heifer calf. These calves need to have the best chance of a healthy, productive life, just as a dairy replacement heifer would be successful. Giving at least 4 quarts of colostrum within 24 hours of birth, dipping navels with 7% iodine, and ensuring navels are dry before heading to the sale barn are key management practices. Considering an intranasal respiratory vaccine before departure is also a good practice for calf success during transport.
If you don't want to limit your profits to the newborn calf market, consider growing or backgrounding these calves to a higher weight before selling. Backgrounding has several benefits for feedlots. It gives the calves time to get through the most stressful periods of their life without much faulter in growth due to less change. With proper management, they can get through the stress of weaning and get the benefit of immunity through vaccination, all while growing and gaining. It also provides an opportunity to get calves used to feed bunks and fermented feeds such as corn silage, which are all desired by the finishing feedlots. This type of program leads to a longer period before cash flow and more upfront expenses. Still, it can add diversity to your cash flow and may be an opportunity to partner with cattle finishing operations that don't have room to handle smaller cattle.
Finally, the last option for marketing beef on dairy crosses is to sell a finished steer. This is when you feed that calf from newborn to end finishing weight. This means you will feed and care for the animal for roughly 16 months. While this model has the most overhead cost, the variety of markets it provides adds additional diversity in cash flow. Those markets consist of selling directly to consumers, contracting directly with packers, or selling on the market at auction. The finished steer method provides more opportunities for profit and flexibility. Direct sales allow you to set a price that would cover production costs and turn a profit. However, this model also allows for greater risk in a volatile market. This model is best considered when adequate housing and feedstuffs are available. My recommendation? I would do a little of all three of these options mentioned. If timed accordingly, selling newborn calves, middle-weight cattle, and finished steers in a continuous model can diversify your business and cash flow year-round.
Bringing beef on dairy into your business is a big decision. While it offers a way to add diversity and a value-added profit to your business, it also provides adequate risk if all the factors are not considered. By improving the carcass quality of the dairy steer using better breeding and management, beef on dairy can positively change the dairy and beef industries. With record-high cattle prices and a decline in the native cattle population, beef on dairy cross cattle continues to become a major focus for dairy farmers, and the question remains: is beef on dairy right for your operation?
Source : psu.edu