Today’s dairies are asking every pregnancy to do more. The best cows are producing the next generation of replacement heifers through sexed semen, while the rest of the herd is often bred to beef bulls to bring in more value from strong calf prices.
Behind those decisions are genomics, changing markets and a breeding strategy that’s become far more intentional than simply filling replacement pens.
The latest numbers from the National Association of Animal Breeders (NAAB) show 45.8 million units of semen were sold or collected in 2025, down about 6% from 2024. But according to NAAB President Jay Weier, that doesn’t mean demand for dairy genetics is slowing.
“We’re not just looking at total units anymore,” Weier says during a recent Council on Dairy Cattle Breeding Cowcast episode. “The way producers are using genetics has changed dramatically.”
Rather than producing as many dairy replacements as possible, the goal has shifted to getting the most value out of every pregnancy.
Sexed Semen Changes Breeding Strategy
Today, sexed semen makes up 64% of all dairy semen sold domestically. According to Weier, that growth is closely tied to genomic testing.
“Producers are obviously genomic testing a lot of their cows and heifers,” Weier says. “So, they know which animals they want to use to generate replacement females.”
Rather than producing replacement heifers from every cow, many producers now focus on generating replacements only from the genetically elite portion of the herd. The remaining cows are often bred to beef sires, creating higher-value beef-cross calves while limiting the number of dairy heifers entering the replacement pipeline.
This strategy has become attractive as beef prices remain historically strong. Five years ago, beef and cull cow sales represented a relatively small share of dairy income on many farms. Today, beef-on-dairy calves have become an important revenue stream, giving producers another way to improve margins while keeping replacement numbers in check.
But this shift has contributed to one of the biggest challenges facing the industry today: a shortage of dairy replacement heifers. As more lower-genetic-merit cows are bred to beef, fewer dairy heifers are entering the national herd, pushing replacement values to record highs.
Beef-on-Dairy Remains Part of the Plan
While sexed semen continues to grow, beef-on-dairy has become a major part of today’s dairy breeding programs. Beef semen sales to dairy producers have climbed dramatically over the past five years, and dairies now purchase more than 80% of all beef semen sold in the U.S.
Weier also points to growing interest in heterospermic beef semen, which combines semen from multiple bulls in one straw.
“The benefit of using heterospermic semen is that you reduce the lows and maximize the highs,” he says.
For producers, the goal isn’t necessarily identifying which bull sired each calf. Instead, it’s improving conception rates while producing consistent, high-quality beef-cross calves that fit feedlot demand.
Exports Continue to Drive Semen Demand
While U.S. producers purchased just under 17 million dairy semen units in 2025, exports accounted for roughly 28 million units — about 63% of the market. That means nearly two out of every three dairy semen units produced in the U.S. are destined for international markets. Those exports are made possible through a rigorous certification process.
“These units would be produced at a CSS audited facility to be eligible for export,” Weier says, explaining that Certified Semen Services and USDA oversight help U.S. genetics reach more than 120 countries.
Reliable quality has earned U.S. genetics a strong reputation worldwide, helping exports stay strong even when individual markets fluctuate.
Weier notes that China was the largest buyer of U.S. semen in 2024, and exports remained strong in 2025 despite a sharp decline in shipments to the country. Demand shifted to other countries, reinforcing the global reputation U.S. genetics have built over decades.
“Success leads to more success,” he says.
Better Genetics, Not More Semen
While total semen sales declined slightly in 2025, the numbers point to greater efficiency rather than weaker demand.
Improved fertility, better reproductive management and genomic selection mean producers need fewer semen units to achieve pregnancies than they did a decade ago. Every breeding decision has become more intentional.
“There’s a strong motivation for semen companies to provide a good product,” Weier says.
Asked what has changed the dairy genetics industry more than anything else, Weier doesn’t hesitate.
“I think without a doubt it has to be genomic selection,” he says. “I think that has moved the needle much more than anything else in the past.”
Genomic testing, sexed semen and beef-on-dairy have fundamentally changed how producers build the next generation of their herd. Today’s dairies are matching genetics to business goals, producing replacement females from their best animals while creating more valuable beef-cross calves from the rest.
The result is a dairy genetics industry where success is no longer measured simply by how many semen units are sold, but by how strategically each one is used.
