Beef prices have already reached record highs in 2025, and economists predict that the market won’t likely let off the gas pedal throughout the remainder of the year. For dairy producers creating beef-on-dairy calves, this trend remains a welcome site for profit margins – especially as milk futures remain in uncharted territory.
However, as market conditions fluctuate, dairy farmers have reached a crossroad – do they sell these crossbreds as newborns, weaned calves, or raise them all the way to finish? Angela Breneman, Dairy Management Extension Educator at Pennsylvania State University, provides context on which market strategy might work best for your operation.
Selling Newborns
For most dairy producers participating in a beef-on-dairy program, selling crossbred calves as newborns remains the most common marketing strategy. This approach offers a quick return on investment and reduces the labor and resources needed for calf rearing.
“The dairy industry has capitalized on marketing 1–5-day-old calves,” Breneman says. “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 have the best chance of a healthy, productive life, just as a dairy replacement heifer would be successful.”
To be successful at this, Breneman stresses the importance getting calves off to the right start, particularly when it comes to colostrum management and administering vaccines. Buyers seek well-started, healthy calves with strong immune systems, making proper early-life care essential for maintaining demand and securing the best prices.
Selling Weaned Calves
Another opportunity for producers is selling crossbreds as weaned calves. According to Breneman, this strategy has several benefits for both dairy producers and feedlots. By keeping calves until they are stronger and more developed, producers can add value and potentially increase their return on investment.
“It gives the calves time to get through the most stressful periods of their life without much faulter in growth due to less change,” Breneman notes. “While this type of program leads to a longer period before cash flow and more upfront expenses, 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.”
Weaning calves before selling gives producers a chance to make sure they’re getting the right nutrition, proper health care, and a smooth transition to solid feed. This extra effort leads to healthier, stronger calves—something buyers may be willing to pay a premium for.
Selling Finished Crossbreds
The final marketing strategy producers should consider is the option to sell finished crossbreds. Finishing cattle allows you to take advantage of strong beef markets while also managing risk through retained ownership.
“While this model has the most overhead cost, the variety of markets it provides adds additional diversity in cash flow,” Breneman says. “Those markets consist of selling directly to consumers, contracting directly with packers, or selling on the market at auction.”
Beyond providing multiple marketing options, raising crossbreds all the way to finish gives producers the ability to set their own price.
“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.”
Make a Plan
As the beef-on-dairy sector continues to grow, one thing is clear—it’s not going anywhere. For dairy producers, finding the right marketing strategy is key, whether that means selling calves as newborns, weaned calves, or finishing them. Breneman’s advice? Have open discussions with all stakeholders and consider testing each approach to determine what works best for your operation.
