Why Some Farmers are Making the Big Switch from Dairy to Beef Production

Facilities, genetics, nutrition, stockmanship and marketing are some of the impotant factors to consider in the transition process.

beef dairy cross calves
beef dairy cross calves
(Wyatt Betchel)

While beef-on-dairy production continues to grow in the U.S., it was a novel concept in 2018 when it came to the attention of Ryan Sterry, regional dairy educator with the University of Wisconsin-Madison Division of Extension.

“A few colleagues and myself were noticing more chatter about this, more farms were experimenting with it,” Sterry recalls.

Fast forward to 2024, and beef-on-dairy is a significant trend that continues to build. CattleFax predicts U.S. beef-on-dairy cattle numbers will reach between 4 million and 5 million head – roughly 15% of the cattle harvested annually – as early as 2026.

In a wide-ranging conversation on The Dairy Podcast Show with host Dr. Gail Carpenter, state dairy Extension specialist for Iowa, Sterry shared some of his early insights and experiences with beef-on-dairy as well as other business opportunities producers have enbraced.

“We’re seeing all sorts of different strategies out there today,” he says. “Some producers say, ‘We’re just going to deal with the milking herd,’ because they can source their replacement heifers, more economically and get better genetics, from another herd. I have other producers who have backed off from beef-on-dairy because they have an outlet for fresh heifers, and that’s another business strategy for them.”

Still, other dairy producers, because of low milk prices in recent years, have decided to transition to beef production. Sterry says he and colleague Bill Halfman, University of Wisconsin Extension beef outreach specialist, have worked with a number of dairy producers who have decided to move exclusively to beef.

Sterry outlines five areas for dairy producers wanting to make the move to beef to think through in the process of making the switch:

1. Start With The Right Animal

Sterry says it’s important for producers to know their goals as they select breeding stock.

While some producers opt to use their home-grown crossbred heifers as breeding stock for starting their beef enterprise, Sterry doesn’t encourage the practice. The reason – because a beef cow could be in the herd for eight years or longer, and will have a long-lasting impact on production quality, he encourages producers to start their beef enterprise with full-blooded animals.

“The caution that we definitely want to put out there is those animals are going to retain some dairy characteristics in their genetics for generations down the line,” he says.

His recommendation: “Decide what emphasis on growth, carcass and maternal traits best fit your production and marketing goals and seek out those cattle to create a solid foundation.”

2. Evaluate Facilities

Dairy operations can often be retrofitted or revamped successfully for beef production. Sterry says bunk and housing space need to be evaluated to prevent the potential for crowding.

Also, consider whether any facilities need repairs or if there are potential hazards that need to be addressed prior to bringing animals into building facilities or lots.

3. Nutritional Needs

“In the transition from dairy to beef, one of the bigger things that we start talking about is that feeding a beef animal is different,” Sterry says. “You’ll need to adjust your expectations for the nutrition program in a cow herd as there’s not multiple rations being used.”

Instead, cow-calf and stocker operations typically rely more on forages such as pasture, crop residues, cover crops and harvested forages.

“Feed costs are approximately 60% of the annual costs of cow-calf enterprises. Letting the cows harvest their own feed by grazing and managing harvested feed storage and feeding waste are critical for controlling costs,” Sterry says.

He adds that finely ground corn is not a good fit in beef finishing rations and can cause rumen acidosis.

“Coarse corn is better for beef animals. Ultra-fine ground corn does not work well, and that’s something we’ve had to uneducate some of our dairy producers on,” he says.

4. Stockmanship Requirements

Sterry says dairy producers often tell him that because they’ve worked with cattle all their life they don’t need to work on their handling practices. But Sperry says beef cattle are a different animal.

“Beef cattle are not used to being handled every day, so dairy producers need to give some thought to stockmanship,” he says.

Part of the reason he emphasizes that is for practical safety considerations. Plus, cattle remember how they were handled in the past, and their behavior – whether skittish or compliant – will often reflect what they remember.

5. The Need to Market Versus Sell

Sterry says dairy producers are often accustomed to selling week-old calves and market cows they don’t want to hang on to for too long.

“When we’re trying to move them off the farm on a timely basis, a lot of times we’re selling ones and twos every week or every other week. With beef cattle, we frame the process as needing to market versus just sell,” he says.

To educate themselves, Sterry encourages dairy producers to attend local sales to see what kind of beef animal buyers are looking to purchase.

“With marketing, you’re advocating for yourself with a buyer, putting the best group of cattle together that you can, and trying to move away from the mentality of ‘I’ll just sell ones and twos,’” he says. “It’s an education process, and sitting through some sales can help.”

The complete conversation between Sterry and Carpenter is available here: Ryan Sterry: Beef x Dairy Crossing

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