Feedlot

The Packer’s Dream: How Beef-on-Dairy is Solving the $2 Billion Consistency Problem

Wed, 22 Apr 2026 13:13:05 GMT

When Brad Kooima of KKV Trading spoke to “AgriTalk” in late January, he described beef-on-dairy as the “gorilla in the room.” But it wasn’t just the volume that caught his attention; it was the control.

“For the first time, you got an integrator that has the ability to control that thing from its birthday and schedule it out 341 days later that we’re going to slaughter that thing,” Kooima said. “Once a dream that the packers chased.”

That dream is now a reality, according to data presented at this year’s High Plains Dairy Conference. For decades, the beef industry has struggled with the fragmented nature of the native cow-calf sector — thousands of small herds with different genetics, different calving seasons and massive variability at the rail.

Ending the War on Variability

Lauren Kimble, manager of ProfitSOURCE Supply Chains for Select Sires, Inc., highlighted the greatest strength of the beef-on-dairy movement is its ability to kill variability.

“I care deeply about consistency ... variability is the enemy,” said Sidney Abbot of OT Feedyard & Research Center, a sentiment echoed throughout the conference.

The data proves why. While the total U.S. fed cattle harvest is a mixed bag of quality, program-specific beef-on-dairy is hitting 40% Prime and 59% Choice. Because these calves are born on dairies that operate like clockwork, they offer the packer something the native beef industry rarely can: Year-round market supply and uniform carcasses.

The Factory Floor of Beef

In the Texas High Plains, where over 25% of the nation’s fed cattle are processed, the shift is undeniable. Data from Laphe LaRoe of Smith Cattle Company shows while native cattle inventories are plummeting, the beef-on-dairy line is climbing.

By 2026, the dairy barn has effectively become the factory floor for the beef industry. Because a dairy cow calves every day of the year, the integrator (the dairy producer) can provide a steady, predictable stream of high-quality protein to the packer every single week. There is no calf crop season. There is only a continuous, scheduled flow.

This isn’t just a marginal gain; it is a fundamental shift in the dairy business model that allows for this factory-like precision. Ken McCarty of McCarty Family Dairy in Kansas says the transition from Holstein bull calves to high-value beef-on-dairy crosses has rewritten their balance sheet. McCarty Family Farms was recognized as the 2025 Milk Business Leader in Technology Award winner for transforming their operation into a high-tech, 20,000-cow operation driven by innovation, data and bold decision-making.

“Bull calf sales went from something that you basically ignored in your budget to something that really today accounts for, depending on the month in the market, somewhere around 50% of our overall revenue,” McCarty says.

When half of a dairy’s revenue is tied to the beef side of the barn, the producer is no longer just a milk man — they are a high-stakes beef integrator with every incentive to meet the packer’s demand for perfection.

Systems Capture Value

As Troy Marshall of the American Angus Association notes: “Genetics create potential. Systems capture value.”

The system is the ability to track a calf from its specific beef-sire breeding date through a standardized calf-raising program, into a professional feedyard, and onto a rail where it hits Certified Angus Beef (CAB) specs with surgical precision.

By 2026, the industry isn’t just selling cattle; it’s selling predictability. For the packer, a beef-on-dairy calf isn’t a gamble — it’s a scheduled delivery of a high-marbling, consistent product that meets the consumer’s demand every time. The gorilla in the room isn’t just big; it’s incredibly disciplined.

Beyond the Black Hide: Why Your Beef-on-Dairy Strategy Could Be Costing You $66,000 a Year

Mon, 06 Apr 2026 12:13:56 GMT

For the past several years, the beef-on-dairy revolution has been the single most transformative trend in the dairy industry. What started as a strategy to manage excess heifer inventory has evolved into a sophisticated, multi-billion-dollar supply chain. Although the conversation has shifted, as the novelty has worn off, the boom phase is maturing and a new, more disciplined chapter is beginning.

Moderated by Joe Dalton of the University of Idaho, a panel of industry leaders recently sat down to map out the next chapter in 2026 at the High Plains Dairy Conference in Amarillo, Texas. The message was clear: In the coming year, simply producing a black-hided calf will no longer be enough. Success in 2026 will be defined by genetic verification, supply chain partnerships and a relentless focus on carcass consistency.

The Powerhouse of the High Plains

To understand the scale of this shift, one must look at the geography of the American feedyard. Laphe LaRoe, director of operations for Smith Cattle Company and Chair of the Texas Cattle Feeders Association provided a sobering look at Cattle Feeding Country.

The region encompassing Texas, Oklahoma and New Mexico accounts for more than 25% of the nation’s fed cattle, generating a staggering $22 billion in total economic impact. However, the traditional supply of native beef cattle is under pressure. U.S. cattle inventories have seen a decline of 8.5 million head between 2019 and 2026.

“We are doing more with less,” LaRoe noted, pointing to charts that show beef production holding steady despite plummeting cattle numbers. The gap is being filled by beef-on-dairy. In the Texas High Plains, the inventory of native steers and heifers is trending downward, while the beef-on-dairy line on the graph is climbing aggressively. By the first quarter of 2026, BxD calves are no longer a byproduct — they are a primary component of the feedyard inventory.

The Scarcity Premium Versus Price Dispersion

Lauren Kimble, manager of ProfitSOURCE Supply Chains for Select Sires, Inc., highlighted the current market dynamics. Currently, the industry is enjoying a scarcity supply premium. Because total cattle numbers are so low, almost all cattle are commanding high prices, and the quality spreads — the price difference between a mediocre calf and an elite one — have condensed.

However, Kimble warned this window is closing. As we move through 2026, the outlook points toward increased supply and, more importantly, price dispersion.

“Genetic differentiation may be the key to maintaining optimal market access,” Kimble explained. In a market with more volume, buyers will become more selective. The scarcity premium will be replaced by a quality premium, where calves with verified genetics and known performance will pull away from the mixed genetics pack.

What Beef-on-Dairy Gets Right

The reason the BxD movement has been so successful is rooted in its ability to solve the beef industry’s greatest challenge: variability. Kimble shared data illustrating beef-on-dairy gets it right in three major areas:

Quality and Grade: BxD calves are hitting higher Choice and Prime percentages with strong marbling expression.
Consistency: Unlike the native cow-calf sector, which is fragmented across thousands of small herds, dairy operations provide uniform carcasses, tighter yield/quality distribution and a year-round market supply.
Efficiency: These calves are bred for growth performance that fits the modern packer’s needs.

The data is startling. While the total fed cattle harvest averages roughly 12% Prime and 73% Choice, program-specific beef-on-dairy is hitting 40% Prime and 59% Choice. As Sidney Abbot of OT Feedyard & Research Center famously stated: “I care deeply about consistency … variability is the enemy.”

The Financial Reality: Genetics as Brand Equity

Delbert Hollis, president and founder of CMS Livestock Auction, brought the livestock trading perspective to the stage, and he didn’t mince words about the financial implications of genetic selection.

In an analysis of video sales from January 2025 to February 2026, the price differences were stark. Calves out of Holstein dams vs. non-Holstein dams saw a $26.17/cwt advantage. Angus sires held a $14.27/cwt lead over Limousin and Simmental crosses. Even the NHTC (non-hormone treated cattle) designation added a $10.28/cwt premium.

Another compelling data point was the program advantage. Calves sold under a verified genetic program averaged $1,966.37 per head (standardized to 450 lb.). Calves with no genetic program averaged $1,913.40.

That is a difference of $52.97 per head.

“For a load of 105 head sold, that difference equals $5,562,” Hollis noted. “If you are selling 105 head every month, that is $66,744 left on the table every year by not using tailored program genetics.”

In 2026, genetics are no longer just an expense — they are brand equity.

Hitting a Moving Target

As the industry matures, the targets are moving. Jon D. Robison of JDR Livestock Management Services and Dale Woerner of Texas Tech emphasized the industry is evolving its conversation around red meat yield (RMY).

“We have a system that doesn’t tell us accurately what we should be producing,” Woerner noted, referring to the USDA Yield Grade system introduced in 1965. The next chapter of beef-on-dairy will involve managing hot carcass weight (HCW) and ribeye distribution to hit specific Certified Angus Beef (CAB) specs more accurately.

The mantra for 2026, as quoted by Troy Marshall of the American Angus Association, is: “Genetics create potential. Systems capture value.”

The Next Chapter

The High Plains Dairy Conference panel made it clear the next chapter of beef-on-dairy is about professionalization. The days of “any black bull will do” are over. To thrive in 2026, producers must:

Verify Genetics: Use programs that provide data-backed premiums.
Focus on the Dam: Recognize the Holstein/Jersey base is just as important as the beef sire.
Build Relationships: Partner with feedyards and packers who value consistency over volume.
Capture the Data: Understand the tuition of the past decade has taught us that variability is the most expensive mistake a dairy can make.

As the industry moves forward, beef-on-dairy is no longer just a boom. It is the backbone of a new, more efficient and more profitable American beef supply chain.

Filling Pens: Beef-on-Dairy Feeders Are Here to Stay

Wed, 17 Dec 2025 09:46:19 GMT

The biggest factor impacting the quality of beef-on-dairy calves in the feedyard is genetic selection.

For the past five years, Hy Plains Feedyard in Montezuma, Kan., has worked with experts to greatly improve their dairy-influenced calves. What might have begun as a trend has only grown and become more popular in filling pens at feedyards.

“We started about 2012 on dairy-cross cattle, and it has taken us up until about this last year with our quality grades,” Tom Jones of Hy Plains says. “Now, these cattle are running about 90% to 100% Choice and 20% to 30% Prime.”

Working with select dairies in Kansas and Nebraska, Jones says genetic selection was the key to improving both quality grades and red meat yield. While they still are not as feed efficient as beef calves, they are still fed the same rations.

Jones says working with Dan Dorn with ABS Global to help navigate genetics was the turning point.

“We were failing miserably until we brought in Dan to help us do this genetic selection. That kind of opened the door for us, and we got better really fast,” Jones explains.

Working with Hy Plains helped ABS gather progeny data in the feedyard to make better sire selections when crossing beef-on-dairy cows.

“We focus on three profit drivers first, and the No. 1 profit driver in the feedyard is feed conversion,” Dorn says. “No. 2 is carcass traits and No. 3 is carcass weight. At ABS, we have been using Sim-Angus genetics from the beginning.”

Working with Dorn on the front end of genetic selection started making a difference in the carcass quality. Next, they consulted with Dale Woerner, Texas Tech University Cargill endowed professor.

“Things really accelerated when we brought in Dale Woerner, and we started looking and measuring red meat yield, quality grade of the cattle and muscling,” Jones explains.

The collected data from all three — Hy Plains, ABS and Texas Tech — were shared and evaluated.

“It really accelerated us into moving these cattle to all Choice and a large percentage of Prime,” Jones says. “It wouldn’t have been near as successful if I hadn’t stuck with those guys.”

Jones works with two dairies that have consistently had 100% Choice cattle and 20% to 30% Prime.

“Nobody thought we’d ever get to that level,” he says.

Dr. Miles Theurer, DVM and research director for Veterinary Research and Consulting Services, works closely with Jones at the Hy Plains research facility and echoes how genetic selection made the biggest improvement in the beef-on-dairy calves.

“The feedyard relied on ABS to figure out how we improve this more rapidly and by really tracing that animal all the way back to that straw of semen,” Theurer says. “We figured out which of those sires worked well and which of them did not perform up to expectations and then how to incorporate that into the selection criteria.”

While more success has been found with beef-on-dairy calves and they continue filling pens at feedyards, one major concern has come to light — liver abscesses .

“Liver abscesses are very challenging on these beef-on-dairy crosses,” Theurer says. “So it varies by location, but also by origin and practices. These can be anywhere from 30% to 40% all the way up to 80% to 90%. Quite a wide range of variation in the amount of liver abscesses.”

Beef calves in comparison in the Midwest are closer to 25% with liver abscesses. This factor has also been taken into consideration with genetic selection, but hasn’t proven to be the answer.

“We need to have more knowledge where these liver abscesses are actually occurring in the production phases for us to develop more appropriate intervention strategies,” Theurer adds. “Right now everyone wants to kind of point the finger at each other, but I think more of that supply communication up and down the supply chain can help find more of the root cause so we can develop effective mitigation strategies.”

Looking ahead, Dorn says beef-on-dairy calves in the feedyard are here to stay and have helped cattle numbers.

“I think as we look at this from the genetic selection, not only on the quality grade but also at some of the red meat yield potential, can help separate these beef-on-dairy crosses for the future,” Theurer summarizes.

Are Beef-on-Dairy Animals Really Worth the High Price Tag?

Fri, 27 Jun 2025 21:25:43 GMT

Beef-on-dairy calves are no longer just a trend; they’re a business strategy for producers aiming to squeeze more value out of every breeding decision. For dairy farmers, they offer a way to turn lower-producing cows into a new revenue stream. For feedlots, they promise improved feed efficiency and more desirable carcasses.

“Dairy producers are breeding lower milk production cows to beef sires to increase calf revenue,” says Melanie Concepcion, a Ph.D. student at Michigan State University, who recently presented on the economics of beef-on-dairy animals. “The idea is to add more value to existing Holstein calves by improving muscling, hide quality and market desirability.”

According to CattleFax, beef-on-dairy crosses started showing up in the fed slaughter mix around 2019. Today, they represent an estimated 2 million to 3 million head annually, contributing roughly 15% to 20% of total U.S. beef production and signaling a major shift in how dairy genetics can serve the beef supply chain.

“They’re here to stay,” Concepcion adds. “And the number of beef-on-dairy cattle is only expected to grow.”

Study 1: Feedlot Gains and Carcass Traits
To measure how these crossbreds stack up, Concepcion launched a study evaluating 75 Holstein and 75 beef-on-Holstein steers from Michigan calf raisers. Raised under identical conditions, the steers transitioned from starter to finishing diets and the performance differences were not surprising.

Beef-on-dairy steers:

Reached market weight 21 days faster
Converted feed more efficiently
Posted a 20% larger ribeye area
Scored lower yield grades, signaling better muscling

“They’re more feed efficient and have a greater ribeye area and fat thickness than the Holsteins,” Concepcion explains. “Their yield grade is also lower, which is a good thing because it means more yield and muscling.”

However, liver health raises red flags. Concepcion finds that 39% of the beef-on-Holstein steers develop liver abscesses, some severe enough to adhere the liver to the carcass.

“In those cases, you see trimming losses,” she says. “And that hurts overall carcass value.”

Premiums and Pitfalls: Are Crossbreds Priced Right?
Economically, the study shows that beef-on-dairy calves bring greater value but also come with a price tag that’s tough to justify.

“We pay $310 more per calf for the beef-on-Holsteins, but our data shows we should have only paid $273 more,” Concepcion says. “Yes, they should be worth more, but not as much as we paid.”

With some day-old beef on dairy crossbreds fetching upward of $1,000, Concepcion says the numbers simply don’t justify the premium in many cases.

“These calves clearly have more value than Holsteins, but not to the degree that some buyers are currently paying,” she says. “We’re still seeing inflated calf prices that don’t reflect actual feedlot performance or carcass returns.”

Study 2: Corn Silage and Liver Health
Looking to address liver concerns, Concepcion led a second study focusing on dietary fiber. The hypothesis: increasing corn silage in the finishing ration could help reduce liver abscess incidence by supporting better rumen health.

The study included 65 Holstein and 65 beef-on-Holstein steers. Each breed was fed a finishing diet with either 20% or 40% corn silage.

“We wanted to see if increasing fiber through higher corn silage inclusion reduces abscess rates,” she says.

The findings were clear:

Steers on the 40% corn silage diet had significantly fewer liver abscesses
The diet change did not affect feed efficiency or cost of gain
Beef-on-dairy steers continued to outperform Holsteins in carcass traits, regardless of diet

“Increasing corn silage inclusion effectively reduces the amount of liver abscesses in cattle, regardless of breed,” Concepcion says.

Carcass Performance Remains Strong
Even with the shift in diet, beef-on-Holstein steers continue to demonstrate a clear advantage in carcass traits and processing yield compared to purebred dairy steers. These crossbreds exhibit:

Higher hot carcass weights
Greater dressing percentages
Larger ribeye areas
Lower kidney, pelvic and heart (KPH) fat

“Adding beef genetics to Holsteins results in more muscling,” Concepcion notes. “And that leads to higher carcass value.”

Interestingly, marbling and quality grade remain similar between breeds and diets. Most cattle grade in the low to mid-choice range, offering acceptable quality without excessive feed costs. Additionally, the lower KPH fat and higher dressing percentages give processors more saleable product, further boosting the overall economic benefit.

“Even with differences in feed and frame size, beef-on-dairy cattle continue to show consistency in carcass composition,” she adds. “This predictability is valuable for both feeders and packers.”

Feedlot Advantages Might Not Justify Current Calf Prices
Despite the performance benefits, the pricing issue resurfaces. In the second trial, beef-on-Holstein calves cost Concepcion $353 more than Holsteins, but break-even data shows they should only cost $281 more.

“We overpaid again, just like last time,” Concepcion says. “These studies show us that beef-on-dairy calves should be priced at a premium, but not as high as the current market suggests.”

Feed costs were actually lower for beef-on-dairy steers, thanks to shorter days on feed. And while the 40% corn silage diet increased feed cost slightly, it didn’t impact the cost of gain, making it a viable strategy for improving liver health without compromising efficiency.

Looking Ahead
While beef-on-dairy calves offer clear advantages in feedlot performance and carcass quality, Concepcion notes the market still needs tools to match pricing with actual value.

She continues to explore what drives health, gain and grading in these crossbreds, and her latest work includes studies on gut and liver health as well as comparisons across breed types like Simmental-Angus, Holstein and beef steers.

“The more we understand how these cattle grow, grade and ultimately eat, the better we can manage and market them,” she adds.

Your Next Read: How to Keep Good Hay From Going Bad: Barn Storage Tips That Protect its Quality and Value

To watch Cocepcion’s full webinar, click here:

Beef-on-Dairy: A Critical Solution to the Shrinking U.S. Cattle Herd

Wed, 05 Feb 2025 16:04:56 GMT

The U.S. beef cattle herd is the smallest it has been in 64 years, and there’s little indication that rebuilding will happen anytime soon. Persistent drought and strong cattle prices have discouraged beef producers from retaining heifers, further tightening supply. As a result, the beef industry has increasingly turned to dairy farmers to produce beef-on-dairy crossbreds to help meet growing demand.

USDA NASS says as of January 1 2025, there were 86.7 million head of cattle and calves on U.S. farms.

(Lindsey Pound )

Beef-on-Dairy’s Growing Role in the Industry

During the 2024 MILK Business Conference, Dale Woerner of Texas Tech University highlighted the impact beef-on-dairy has had on the industry.

“Ultimately, these crossbred animals have improved the conventional straight Holstein steer so much, and they’ve offered more volume and a really high-quality product into the beef industry,” he said. “With low native cattle numbers, the industry has to have these cattle. Not only do they have to have them, but they have to have them grade prime or choice.”

Woerner believes that beef-on-dairy crossbreds have added immense value to the beef supply chain and should be seen as a long-term solution. “Beef-on-dairy crossbreds have added enough value to the beef supply chain that we should never change what we’re doing. We should continue creating these crossbred cattle for the future.”

A Reliable and Consistent Supply of Cattle

With native beef cow numbers dwindling in recent years, beef-on-dairy crossbreds have stepped in to fill a critical gap, offering both consistency and quality during a time of supply uncertainty. Despite inevitable market fluctuations, Woerner is confident these crossbred cattle are here to stay.

“While we can’t promise that we’ll always see $800-$900 for a beef-on-dairy calf as we do today, I don’t think we’ll ever return to the low value of purebred Holstein steers from the past,” Woerner added.

Feedlots have become especially reliant on these crossbreds. “Feedlots need these animals – they’re a top commodity,” Woerner noted. “Over the years, many feedlots have gained experience in feeding beef-on-dairy cattle, optimizing their efficiency and performance. From a feedlot perspective, these cattle are in higher demand than ever before.”

The Value of Traceability

Looking ahead, Woerner thinks it’ll take at least three to five years to rebuild the beef herd, depending on weather and market conditions. But even with that, beef-on-dairy crossbred calves are still going to be a valuable part of the industry. One big advantage he sees with these animals is the traceability they offer, which adds extra value and transparency throughout the supply chain.

“Even when native cattle numbers rebound, the traceability system in place with beef-on-dairy crossbreds will continue to offer a level of accountability that sets these animals apart in the marketplace,” he added. “I wouldn’t be surprised if feedlots and packers start offering a premium for that kind of information.”

Challenges Ahead

While the native beef herd has reached record lows and prices have skyrocketed in recent months, beef-on-dairy crossbred cattle have stepped in to help fill the gap. Woerner noted that these crossbreds have provided much-needed consistency and quality during a time of uncertainty. And although the beef herd is expected to gradually rebuild over the next few years, it’s clear that the beef industry will continue to rely on these crossbred animals to meet demand and keep the pipeline full.

Even though the beef herd is expected to rebuild in the coming years, analysts warn that it won’t happen overnight. Arlan Suderman, chief commodities economist at StoneX, pointed out that the industry hasn’t even started rebuilding the breeding herd yet. “The next takeaway is that we have not started rebuilding the breeding herd. As such, perhaps we have a little higher numbers over the next half year or so, but then things get tighter, and more significantly tighter once we actually do start holding back heifers,” Suderman explained.

A Long-Term Solution

With native cattle numbers still under pressure, beef-on-dairy crossbreds are providing the industry with a critical supply of cattle. Their value—through efficiency, consistency, and traceability—ensures they’ll remain an essential piece of the beef supply chain, even as the market continues to evolve.

Your Next Read: Navigating Uncertain Waters: The Impact of New Tariffs on U.S. Dairy Farmers

Is Beef Breeding Derailing the U.S. Dairy Industry?

Tue, 17 Sep 2024 20:27:30 GMT

Beef-on-dairy breeding has revolutionized the U.S. cattle industry, shored up dwindling fed-beef cattle supplies, and added considerable black ink to the bottom lines of dairies in recent years.

But is it a phenomenon gone too far? Regardless of industry, mega-trends can carry with them unintended consequences. Veteran dairy data expert and thought leader Steve Eicker, DVM, fears the lure of lucrative near-term cash-outs on beef-cross calves may be altering the course of the U.S. dairy business to damaging degrees.

Eicker, co-founder of Valley Agricultural Software and its popular Dairy Comp 305 herd management software, acknowledged that beef-cross calves have plugged many holes in the nation’s beef animal supply. At just over 28 million head, the U.S. beef cow herd size is at a 70-plus-year low.

Feedlots have welcomed beef-cross calves to keep their pens full, and at premium prices to boot. This past summer, newborn beef cross calves sold for as high as $1,000/head or more, with $600-800/head the norm.

But at what true cost to the dairy industry? Eicker believes the chinks in the armor are beginning to show and will become more apparent in the months and years ahead. The factors that are being affected include:

Heifers are in short supply – Creating more beef-cross calves has resulted in less opportunity to produce dairy heifer calves. In just two years, from the start of 2022 to 2024, the total number of replacement dairy heifers in the U.S. has dropped more than 10%, part of a 7-consecutive-year decline in the nation’s heifer inventory. At slightly over 4 million dairy heifers, the national supply is at a 20-year low. What’s more, just 2.59 million heifers are projected to calve and enter the nation’s lactating herd this year -- by far the lowest inventory in 22 years of USDA projections. Commensurately, heifer prices have climbed precipitously through 2024 as dairies scramble to secure them.
Removals have slowed – Marketing dairy cows for beef has also hit record-low territory. Because dairies are having a hard time finding enough heifers to keep their stalls filled, they are hanging onto cows longer. In the week ending July 6, 2024, just 40,189 dairy cows were slaughtered nationwide, the lowest total in any week since Christmas 2009, and more than 20% lower than the same week in 2023. By August 17, only 1.74 million head of dairy cows were sold for beef this year, compared to 2.04 million head in the same time period last year. Eicker said the detrimental effects of this data are three-fold. First, dairies give up the potential of introducing the most current genetics into the herd that heifers deliver. Second, “those cows that are removed are in far worse condition, and thus bring less income at salvage,” noted Eicker. Consequently, the beef supply is also shorted by those lighter cows that are in worse condition. Third, he is concerned that delaying the removal of market cows will negatively impact their condition and welfare.
Milk production is down – “U.S. milk production is dropping because we have far too many low- producing cows that we cannot replace,” declared Eicker. Again, the numbers tell the story. Total milk production has flatlined at just over 225 billion pounds annually since 2021, after growing incrementally each year since 2014. In the most recent USDA Milk Production Report , average milk production per cow dropped 13 pounds/head for April-June 2024 compared to the same window in 2023, and total milk production for the quarter was down 624 million pounds year-over-year.

Eicker said the beef-on-dairy movement may prove to support the old adage of, “if it seems too good to be true, it probably is.” And he is fearful that the current inventory situation will prevent dairies from maximizing their ability to capitalize on currently rising milk prices, because they simply will not have the animals to do it.

“That short-term increase in calf revenue is dwarfed by the fact that they will be forced to keep their market cows many months longer,” he noted. Plus, with rising heifer values, there is real money to be made again raising and selling heifers. “What dairy would want $600 now instead of $1,600 in two years?”

Your Next Read: Beef-on-Dairy: How to Make Successful Semen Selection Strategies

Purina Animal Nutrition Releases Comprehensive Beef-on-Dairy Industry Report

Thu, 01 Aug 2024 18:04:40 GMT

Purina Animal Nutrition has announced the release of its Beef-on-Dairy Industry Report, a collaborative effort featuring beef-on-dairy research, contributions from industry-leading experts and actionable insights for improving beef-on-dairy programs.

This comprehensive report is tailored to help producers make informed decisions, offering valuable information about genetic selection, management practices, nutrition strategies and market dynamics associated with beef-on-dairy production.

Contributing to this in-depth analysis are Dr. Kirsten Nickles of Certified Angus Beef; Dr. Sara Place of AgNext at Colorado State University; Dr. Robert Weaber of Kansas State University; Dr. Dale Woerner of Texas Tech University; along with Purina Animal Nutrition experts Dr. Troy Wistuba, Dr. Olivia Genther-Schroeder and Ted Perry, M.S.

“We are seeing calf prices like we have never seen before with day-old calves bringing nearly $900. This opens doors of opportunity for producers to maximize their profit potential and meet the rising demand for high-quality beef,” says Laurence Williams, dairy beef cross development for Purina Animal Nutrition. “By partnering with these industry leaders, we aim to foster collaboration across the supply chain and provide resources to dairy producers and cattle ranchers that help drive success for their beef-on-dairy programs.”

The Beef-on-Dairy Industry Report can be downloaded at purinamills.com/dairy-beef .

New Beef-on-Dairy Feedlot Set to be One of the Largest in Country

Wed, 03 Jul 2024 19:43:28 GMT

Despite the smallest U.S. cowherd in 73 years and corresponding tight feeder cattle supplies, the largest cattle feedyard north of the Rio Grande is under construction in Nebraska. When complete, Blackshirt Feeders near Haigler in the far southwest corner of the state, will have a capacity of 150,000 head, all standing on a concrete pad covering a full square mile, replete with an accompanying biodigester.

None of that previous paragraph defies logic, provided you know the track record of the principals involved and understand the growing beef-on-dairy (BxD) phenomenon that has captured the attention of stakeholders throughout the chain — feedyards, dairies, backgrounders, seedstock providers, feed companies and packers. In short, the BxD segment has provided a new profit opportunity for cattle feeders and seedstock suppliers, a lifeline for some dairies, and promises to revolutionize the way the beef industry accepts, captures and uses animal ID and the data it provides.

CLOSED LOOP

The BxD production model offers a unique opportunity for innovators to utilize every available tool and management practice to foster improvement. Specifically, this new model links the semen provider to the dairy to the feedyard in what is called a closed-loop system.

“We’ve long dreamed about this type of system,” says Lee Leachman, CEO of Leachman Cattle, now part of the URUS group of companies. “We supply the semen, and Alta or Genex distributes it to a dairy, then the dairy signs a contract with GK Jim Farms to sell those calves either as day-olds or after a growing period, then they are shipped to the feedlot for finishing.”

Th e contracts stipulate that every calf is tracked from birth with sire, health and performance data. That information is used to determine future matings to improve performance and reduce undesirable characteristics.

“This is a game changer,” Leachman emphasizes. “This enables progress like what we’ve seen in poultry and swine. If you don’t have the loop with the data you can’t make the progress.”

The closed-loop system is already operational at several U.S. feedlots, including five operated by GK Jim Farms in Colorado and Texas.

Blackshirt Feeders - Construction Timeline

(Lindsey Pound)

Veterinarian Kee Jim, principal at GK Jim Farms, says as his company began expanding their beef-on-dairy model they sought to acquire feedlots, but none were available at the scale they desired.

“Three years ago we began investigating what we believe would be the best site to build a new feedlot,” Jim says. “We looked at availability of grain, the climate, proximity to available feeder cattle and proximity to packers.”

That led to the selection of the construction site near Haigler, Neb., in the southwest corner of the state that joins both Kansas and Colorado.

ENVIRONMENTALLY FRIENDLY

Designed to be much more than just a large-scale feedlot, Blackshirt Feeders has several unique features that will make it the “most environmentally friendly feedlot on the planet.” That is how it’s described by veterinarian Eric Behlke who is both a founding partner of Blackshirt Feeders and project leader for its construction.

First among the new yard’s unique characteristics is the compressed rolled concrete that will cover every feeding pen. The concrete offers several advantages but is essential to capturing the manure for the biodigester that will be built adjacent to the site.

“The concrete allows for the collection of the manure without contaminating it with dirt, which is essential for a digester,” Behlke says. “But the concrete is impermeable, which provides superior protection for both the groundwater and the surface water. All of the ponds will be lined with high-density HDPE liner, a synthetic liner which is also impermeable, to prevent leaching of nutrients.”

Behlke says Blackshirt Feeders is committed to leveraging the latest technologies and feedlot construction to make the new yard as environmentally sound as possible.

“These efforts will help change the narrative about beef production and make it a much greener process,” Behlke says.

All of which sounds good, but like most agribusinesses today, finding labor is likely an issue, especially in a remote area. The company is already working to ease that problem, Jim says.

“We have plans to construct housing in Wray, Colo., about 20 miles away,” Jim says. “The first 24 units are under construction now.”

DATA AND SCALE

It can be easy for observers to focus on the massive size of Blackshirt Feeders, but it’s much more than an effort by a large player to further capitalize on efficiencies of scale, though that is important.

“What makes our system unique is that our large and ongoing investments in data collection and analysis are what have allowed us to scale our business,” says Holt Tripp, DVM, MBA, director of cattle operations for GK Jim Group of Companies.

Tripp says the company has used rigorous, large-scale, field trials to better understand the biology of the animals they are feeding.

“In turn, we have been able to make consistent incremental progress that allows us to make calculated bets on how, when and where to deploy risk capital in our system,” he says. “We are not using data to describe a system that has already come to scale — we are using data to get to scale. In our minds, anything else would be putting the cart before the horse.”

It’s ironic that an offshoot of the dairy industry might be the catalyst that could drive the beef industry toward expanded use of animal ID and data capture.

“I think eventually these (beef-on-dairy) calves may be better than the average beef-on-beef animals,” Leachman says. “AI’ing millions of dairy cows is a big advantage. We get so much selection pressure. If we don’t have a data feedback loop on beef-on-beef calves, then it will be harder to keep up. If we don’t have data feedback, we won’t be able to make progress as rapidly on the most important traits. Having ID and feedback on economically relevant traits is critical.”

The closed-loop system will eventually find its way to the native beef-on-beef segment.

“Cattle feeders will likely increasingly want to adopt that sort of model,” says Nevil Speer, industry consultant based in Bowling Green, Ky. “Knowing more about the feeder cattle they purchase and subsequently also providing feedback (and payment incentives) based on cattle performance (both in the feedyard and on the rail).”

Data, of course, is the key driver. “There’s more opportunities all the time for beef producers who are willing to embrace participating in a specified supply chain,” Speer explains. “It means giving up some independence, and it requires more accountability, but ultimately willingness to do so will likely also establish new opportunity to maximize the value of genetic and management inputs made at the ranch.”