Beef × dairy breeding strategies have become common because of the profit generated for today’s dairy farms. Five years ago, there were about 5.1 million purebred dairy heifers and steers entering feedlots. Today, it is estimated that more than 60% of the dairy-origin cattle entering feedlots have been replaced by beef × dairy crossbred calves. These calves are coming at a time when the beef industry and supply chain need them as calf numbers are at an all-time low, while the demand for beef continues to grow.
Let’s look a little closer at this trend. According to the National Association of Animal Breeders (NAAB)*, 9.4 million units of beef semen were sold in the U.S. and 7.9 million of those units went to dairy herds1. This is not surprising as the value of beef × dairy crossbred calves continues to rise, and right now they are bringing upward of $350-$950, depending on the region in which they are sold.
Research done by Dr. Dale Woerner, Professor and Cargill Endowered Professor at Texas Tech University, on these beef × dairy animals shows how they compare with their dairy and beef counterparts. Some of their critical findings include that beef × dairy calves are efficient having greater average daily gain and improved feed-to-gain ratio compared to Holstein steers and show similar gains when compared to purebred beef cattle.
Additionally, many beef × dairy crossbreds achieve Choice or Prime USDA Quality Grades, which indicates the amount of marbling and ultimately the flavor performance of the product. In a recent STgenetics® STtalks podcast on the grade quality of crossbred cattle, Dr. Woerner stated that this quality grade through marbling is really the largest driver to individual animal and carcass value. Beef × dairy calves have overall greater red meat yield than dairy carcasses meaning they produce a higher amount of lean edible meat than Holstein steers.
Efficiency Equals Profits
In today’s beef world, steers are more valuable than heifers. Based on a monthly statistical analysis of sales data from Overland Stockyard, Cattle Marketing Services, and Superior Livestock, the current spread between steers and heifers as feeder cattle is about $110 per head. A steer has an advantage of about 125 pounds more of live weight or about 80 pounds more of carcass weight. Much of this improved profitability and higher weights can be attributed to the improved efficiency of steers as on average, steer efficiency leads to a 6.5% reduction in cost of gain. Feeders and packers prefer steers due to this higher performance.
Genetics is another area that impacts the beef × dairy calf value and consistency. Not all beef × dairy calves have the same terminal merit, but using the STgenetics® Beef Add On™ portfolio of sires developed with the Beef on Dairy breeding strategy in mind can increase that merit. Feed Conversion Efficiency is also a large part of this equation and STgenetics® exclusive EcoFeed® Beef on Dairy genetics is also driving feed efficiency of these crossbred calves. With over 10,000 beef × dairy crossbreeds evaluated through genomics, EcoFeed® Beef Add On™ sires represent genetics where sustainability meets productivity. Namely, 10 points of improvement in EcoFeed® equates to 4% cost of gain improvement. Ultimately, this means less dollars invested for the same performance which leads to more profits and sustainably producing products for the end consumer.
Most recently, STgenetics® introduced $ST, a terminal profit index that ranks beef sires for dairy crossbreeding that helps dairy farmers get the most value for their calves. It utilizes genomic breeding values for growth, EcoFeed® Feed Conversion Efficiency data and carcass traits from STgenetics® own beef × dairy progeny testing program. $ST is a specialized index that incorporates all aspects of supply chain beginning at conception and ending when beef hits the premium market.
STgenetics® $ST, an exclusive profitability index for terminal beef × dairy calves, was developed from research of beef × dairy progeny. So far, STgenetics® has collected individual animal phenotypes for Feed Conversion Efficiency, growth, carcass metrics and quality on over 8,000 beef × dairy progenies. Based on this research, the $ST index has been shown to represent an expected dollar-per-herd difference in profit potential of beef × dairy calves from 400 pounds to finishing weight.
Creating Consistency
Genomics and genetics are also creating a consistent product for the supply chain. These buyers value that consistent product and knowing the origin of their calves. The calf health protocol, the animal wellbeing and the consistent care of these calves in dairy herds also add value to crossbred calves sold.
Another strategy that has been improving profits for these crossbred calves is retaining ownership of some crossbred calves to gather real data on them to share with buyers. Live and carcass performance can be shared with buyers to enhance confidence in future beef × dairy calves offered for sale. This data along with knowing their genetics and the health metrics in dairy herds all increase predictability of calf performance. Having real-world data and genetic information builds the confidence of calf buyers and can even generate opportunities with new buyers.
The beef × dairy breeding strategy continues to add value to dairy farmer’s bottom lines by making the most of every pregnancy on a dairy farm. Using proven male-gender enhanced or sorted semen like the sires available in the STgenetics® Beef Add On™ program creates consistent crossbred steers with the predictability, volume and performance that today’s buyers are seeking. Finally, the health metrics, genetic background and quality these crossbred calves bring to the entire supply chain can mean profit potential for all parties involved.
Key Profit Points:
- The beef × dairy strategy is a profitable enterprise
- Male Calves – Steers = larger carcasses, higher premiums, enhanced profits
- Specialized Beef on Dairy Genetics = consistency, uniformity and quality
- Better Performance
- beef × dairy calves achieve greater yields than Holsteins
- Steer efficiency leads to a 6.5% reduction in cost of gain
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*https://www.naab-css.org/news/2023-semen-sales-report-reflects-global-trends