Once a low-value commodity, beef-on-dairy calves are now a key profit center. This new report shows how genetics and breeding are changing the agribusiness game.
The Unprecedented Rise of Beef-on-Dairy
Beef on Dairy(McCarty Family Farms)

Once a low-value byproduct, beef-on-dairy calves are now a profitable income stream for the dairy industry.

The agribusiness community is witnessing a dramatic market shift. The article from Dairy Herd reports that calves from beef-on-dairy crosses, which were once sold at a steep discount, are now approaching the market value of traditional native beef cattle. This remarkable transformation is a direct result of advancements in genetics and more targeted breeding decisions by producers. The result is a stronger, more consistent calf that feedlots and packers are more confident in, fundamentally reshaping a segment of the food supply chain.

The financial data underscores the magnitude of this change. The article cites experts who highlight the dramatic increase in the average price of day-old, beef-on-dairy calves. The price has soared from approximately $650 three years ago to an impressive $1,400 today. This significant jump is a powerful piece of data journalism that illustrates the strong financial incentives for dairy farmers to adopt this new strategy and diversify their income streams beyond traditional milk production.

Industry analysts are confident that this trend is here to stay. Experts like Phil Plourd and Dan Basse are quoted in the article, both suggesting that financial incentives for beef-on-dairy will continue to be strong for the foreseeable future, despite potential market fluctuations. Basse emphasizes that this is a “structural change,” not a passing fad, made possible by modern technologies like sexed semen and In Vitro Fertilization (IVF). This makes it a crucial development for bridging the supply gap in the US beef cow herd.

The article provides a real-world case study of this strategy in action, highlighting the experience of McCarty Family Farm, a premier Kansas dairy. McCarty Family Farm has successfully integrated beef-on-dairy into its operation and found it to be a substantial part of their non-milk income. The family’s experience shows that this approach not only bolsters profitability but also enhances genetic selection within their herd, a key insight for the entire international dairy industry.

In conclusion, the rise of beef-on-dairy is a game-changer for the entire agribusiness sector. This innovative approach to breeding has turned a former low-value commodity into a high-value asset, improving both dairy economics and the beef supply. The insights from this article are a must-read for producers, manufacturers, and analysts looking for new ways to optimize their operations and remain competitive in a rapidly evolving market.

Source: Dairy Herd, “Discount to Dominance: The Rise of Beef-on-Dairy

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