Beef-on-Dairy Continues to See Major Growth
With the demand for beef up, more dairy producers are crossbreeding poor genetic or less productive cows with beef semen. This isn’t something new, as producers have increased beef genetics usage for various reasons. But over the past few years, dairy semen sales have idled while domestic beef sales have exploded.
“The main reason given is the dramatic increase in use of sexed semen by dairy producers,” he says.
Corah says another big reason was due to three of the four major packers quit harvesting Holstein steers, devaluing the Holstein steer market value.
Holstein bull calves sell for little compared to beef-on-dairy cross calves selling for four to six times more, up to $250, making this a new profit center for many dairies.
“At feeder weight of about 500 to 600 lbs., the beef-on-dairy cross calf is about $12-15/cwt below a beef calf of the same weight, but the Holstein steer is $40/cwt below, according to data from Superior Livestock and Kansas State,” Corah says. “Economics drive change and it is easy to see why the use of beef genetics has been adopted so widely and rapidly by dairy operations.”
A Packer Perspective
Kim Herinckx is the vice president of food safety and quality for One World Beef, the largest scale slaughter processing facility in southern California. They prominently handle dairy or dairy influenced cattle and specialize in grain-fed Holsteins, Wagyu and beef-on-dairy dairy cross cattle. They are the second-largest exporter to Japan, Chile and China.
Many feedlots that funnel into One World Beef are located within 80 miles, although some cattle come from Colorado, Kansas and Texas. Regardless of where the cattle originate, Herinckx says the communication between the packer and feedlot is constant, with daily communication and frequent site visits to ensure quality and data points.
“The problem we’re running into is that some traditional feedlots get black cross animals in, and they are feeding them like a traditional black animal, and it simply doesn’t work,” she says.
During meetings with the rendering division, Herinckx says one comment that has stuck with her, and she believes is a takeaway for every producer to remember is, “If you want value out of your byproducts, you have to stop treating them like a byproduct.”
Creating a syncretistic relationship with the dairy producer can help develop a brand program, Herinckx notes, and helps it go from a byproduct to a go-to product. She says this is a fundamental shift and that dairy has always been the winner when it comes to addressing consumers’ demands.
