Over the past seven years, Tony Lopes has steered his family’s fourth-generation California dairy through a remarkable transformation. Today, the family milks 5,000 cows across four locations, produces 3,800 beef-on-dairy crossbred calves and procures an additional 12,000-plus head from outside dairies and calf ranches annually, offering a model for other farms looking to diversify revenue and improve herd economics.
Lopes first got into beef-on-dairy during a period of expansion when the farm had extra pen space and a surplus of heifers.
“Beef-on-dairy was becoming the trendy thing to do, and it coincided with us going through an expansion,” he says. “The first question we had to ask ourselves was if we breed some of these lower-end animals to beef, can we still produce enough heifers. The answer was yes. It was a crawl-before-you-can-walk kind of experiment.”
Once the operation confirmed they could meet replacement needs using sexed semen, they stopped using conventional semen entirely and began focusing on generating as many beef-on-dairy cross calves as possible.
“From the first calves that hit the ground, we backgrounded them and sold them in small gooseneck loads. The math kept working, and as our volume increased, we moved up to 50,000-lb. loads,” Lopes recalls.
Over time, the program evolved even further. They now take calves in as day-olds or at 400 lb. to 450 lb., raising them to 700 lb. to 750 lb. before marketing. This growth gave Lopes the confidence to take full control of the genetics behind the operation.
“The entirety of our beef-on-dairy program today is sired by our own Angus genetics,” Lopes explains. “By 2022, we had enough data to confidently procure our own bulls, and in seven years we’ve gone from knowing nothing about the feedlot side of beef-on-dairy to making it an incredibly big piece of our operation.”
Not Held Back By Tradition
“I’ve always had a passion for genetics and have been interested in what genetic inputs can result in better performance outputs,” Lopes says.
So, when beef-on-dairy began gaining traction, he found himself watching the space closely.
“When we were all starting out, there were a lot of questions,” Lopes recalls. “It seemed like the whole industry, at the same time, was trying to figure out what to breed our cows to. Every stud company, every region, at that point, had a little bit of a different answer.”
After experimenting with several breed compositions, the decision ultimately came down to market demand.
“What drove our decision to go Angus was just buyer demand,” Lopes says. “From an animal husbandry standpoint, we were trying to do everything we could to raise a good quality calf. And as we were building relationships with buyers, they were pretty consistently saying: ‘Hey, we’d really prefer if you just made these all Angus.’”
Lopes emphasizes that genetic decisions on the farm are driven by data and economics, not tradition.
“We’re big believers in making genetic decisions based on dollars and cents as opposed to just a biased opinion or tradition,” he explains. “When we started getting kill data back and looked at the economic drivers of our decisions, we arrived at a conclusion: These are the trait compositions that are going to result in more profitability.”
That analysis led the farm to source a specific set of elite Angus bulls, genetics they couldn’t consistently find in any single company’s lineup. According to Lopes, the breed’s data quality, quantity and large population size made it a logical choice for maximum genetic progress.
“Fortunately, in the Angus seedstock world, elite genetics are well distributed throughout the industry,” Lopes says. “There are a substantial number of bull sales every spring and fall. We were able to find the bulls most elite for the traits we care about, and that just kind of grew from there.”
Still, choosing to buy and use their own bulls came with uncertainty at first.
“It was a little leap at the time, but as we continue to aggregate more and more data, we’re very glad we made that investment and very confident in the performance advantages we’re seeing from our selected sires,” Lopes says.
Data-Driven Decisions
Lopes relies on rigorous data collection and economic modeling to guide breeding decisions.
“Everything we do is built into an economic model from the standpoint of profitability,” Lopes explains. “We look at all the things that go into what we’re asking the animal to do. We’re asking the animal to hang the heaviest carcass possible in the shortest number of days.”
It’s a model that pushes the operation to look beyond individual traits and consider how they work together. The goal isn’t simply to make better cattle but to make cattle that deliver the greatest economic return.
“We’re financially incentivized not just for pounds but for quality. If a carcass grades Prime and we’re chasing the best feed conversion, we have to evaluate those trade-offs,” Lopes says. “A 1% gain in feed conversion versus a 1% increase in Prime percentage delivers very different financial outcomes. Our system converts each of those factors into dollar-and-cents projections so we can prioritize which traits deserve the most weight in our selection process.”
But to understand which traits truly move the needle, the process starts with the carcass data connected to each animal.
“We receive kill data on every individual carcass and tie it back to that animal’s ID — hot carcass weight, backfat, ribeye area, marbling score, yield grade and more,” Lopes says. “We can link all of it to genetics and to management factors like sex, birth date, colostrum score and how many times the calf was treated for pneumonia or other illnesses.”
When those metrics are layered together, the picture becomes much clearer.
“By combining all these data points, we can isolate the genetic components from management influences,” he says. “That helps us make smarter decisions about both genetic selection and day-to-day herd management.”
Eyes on the Future
Looking ahead to 2026 and beyond, Lopes remains bullish on the future of beef-on-dairy.
“I would say there’s a lot of people who think we can’t make any more beef-on-dairy calves than we are now. I don’t share that opinion,” Lopes says. “Producers could likely produce more calves with an optimized approach, using sexed semen and beef genetics. Even in five years, regardless of where beef prices are in the cycle, I think beef-on-dairy will remain a mainstay in the industry. It’s transformational for genetic progress, herd efficiency and revenue.”
On the replacement side, he sees a market that is tighter than ever but still overstocked in certain areas.
“Almost every dairy has fewer heifers than in recent memory, but some still have more than they need,” Lopes says. “Cull rates and herd management mean many farms are comfortable with lower turnover, yet heifers exist — just not where they’re needed. I know I’m in the minority, but I think there’s still an overabundance relative to actual demand.”
For his own operation, Lopes plans measured growth in 2026.
“We’re looking to expand the number of calves we bring in and work with strong operators across the western United States,” Lopes says. “The market is uncertain. Recent futures and processing news make it hard to know whether we’re sourcing at high or low values, but we’re confident there’s still value in beef-on-dairy calves, and we intend to continue growing.”
