Hello, everyone, and welcome to the 201st episode
of the Bull Bullvine podcast. I'm Bella, and
today we're diving into a topic that's absolutely
transforming dairy farm economics across North
America. If you've been treating those bull calves
as an unfortunate byproduct rather than a profit
center, well, this episode might just change
everything for your operation. And I'm Douglas,
joining Bella today to break down the beef on
dairy revolution that's sweeping through the
industry. We're going to explain exactly how
crossbreeding strategies are delivering substantial
returns on investment for progressive dairies
and how you can implement these strategies on
your farm. Today's episode isn't just theoretical.
We're talking practical implementation that could
significantly impact your bottom line in 2025.
Douglas, I've been seeing more and more Holstein
beef crosses at farms I visit. It seems like
this trend has really accelerated in the last
few years, hasn't it? Absolutely, Bella. According
to a 2024 Purina survey, 72 % of dairy producers
are now strategically breeding to beef sires.
That's not just a trend. That's becoming standard
practice. And with U .S. cattle inventory sitting
at a 73 -year low and beef prices maintaining
historic strength, the timing couldn't be better
for dairy producers to capitalize on this opportunity.
Well, I can't wait to dig into all the details.
Let's get started. So Douglas, let's start with
the basics. Why has the dairy industry traditionally
viewed bull calves as, well, kind of a nuisance
rather than an opportunity? You know, Bella,
it's really been a historical mindset. For generations,
dairy farmers have focused exclusively on milk
production. Bull calves were simply a biological
necessity to get cows pregnant and lactating.
The collective sigh when another bull calf hits
the ground has been practically an industry ritual.
I've definitely heard that sigh on plenty of
farms. And I understand the frustration. You're
running a dairy operation, not a beef farm. So
those bull calves just represented extra work
without much payoff. Exactly. But the dairy landscape
has fundamentally changed. With U .S. cattle
inventory at its lowest level in 73 years according
to the latest industry data, the market dynamics
couldn't be more favorable for strategic beef
on dairy programs. What kind of premiums are
we actually seeing for these crossbred calves
compared to straight dairy bull calves? According
to that 2024 Purina survey I mentioned, 80 %
of dairy farmers receive significant premiums
for their beef on dairy calves, with some reporting
additional revenues of $350 to $700 per head.
compared to straight dairy calves. That's a substantial
difference that can transform what was once a
break -even byproduct into a genuine profit center.
That's a substantial difference. But I imagine
there's more to the story than just selling calves
for higher prices? Absolutely. Those initial
premiums are just scratching the surface of what's
possible with a data -driven approach. The difference
between a mediocre and exceptional beef on dairy
program often comes down to precision in both
planning and execution. So Douglas, when farmers
are calculating the return on investment for
these beef on dairy programs, what are they typically
looking at? That's a great question, Bella. The
standard approach most farmers take is simply
multiplying the number of crossbred calves by
the price premium they expect to receive. But
that drastically undervalues the true financial
impact. This simplistic math ignores multiple
profit centers and operational efficiencies that
compound over time. That makes sense. What other
factors should dairy producers be considering
in their calculations? A comprehensive ROI calculator
must capture three interdependent financial impact
categories, additional revenue, operational savings,
and opportunity gains. Each category represents
a distinct profit center with measurable returns
that compound across your operation. Let's break
those down one by one. What specific revenue
gains are we talking about beyond just the calf
premium? Well, the direct calf premium is certainly
significant. For a 1 ,000 -cow dairy with 30
% of the herd bred to beef bulls and a conservative
$300 per calf premium, that generates $90 ,000
in additional annual revenue. But if you retain
ownership through finishing, you can capture
even more value. Research from the Journal of
Animal Science shows that crossbreds consistently
achieve higher grading rates, which adds substantial
value per head. And what about the operational
savings? I know reproduction is a key cost center
on dairies. You're absolutely right. Research
published in the Journal of Dairy Science consistently
shows improved conception rates when using beef
semen on specific cow segments. particularly
those struggling with heat stress or aging reproductive
tracts. Even a modest improvement in conception
rate can translate to significant savings in
breeding costs and labor. Sang, I hadn't considered
the conception rate difference. What about calf
health? Do these crossbreds perform differently?
They do indeed. Research indicates that crossbred
beef dairy calves often display hardier constitutions
than purebreds. With treatment costs for calf
health issues representing a significant expense
on most operations, even a modest reduction in
morbidity rates can add substantially to your
bottom line. And you mentioned opportunity gains
as the third category. What does that encompass?
This is where traditional ROI calculations really
fall short. By strategically breeding a portion
of your herd to beef sires, you redirect resources
from heifer raising to more profitable enterprises.
With the cost to raise a heifer to calving exceeding
$2 ,000, according to research from Cornell University,
breeding fewer replacement heifers liberates
significant capital that can be deployed elsewhere
in your operation. Wow. So we're really talking
about a multidimensional financial impact that
goes far beyond just getting better prices for
calves. Douglas, you mentioned that U .S. cattle
inventory is at a 73 -year low. Can you tell
us more about the market conditions that are
making this such an opportune time for beef on
dairy crossbreeding? The current market dynamics
couldn't be more favorable, Bella. With the lowest
cattle inventory in decades and strong demand
for quality beef, we're seeing a perfect environment
for premium pricing on well -conformed beef animals.
How quickly has the adoption of beef on dairy
crossbreeding grown in recent years? The growth
has been exponential. Let me share some verified
statistics from industry sources. In 2014, there
were approximately 50 ,000 beef on dairy crossbred
calves produced. According to CattleFax estimates,
that number is projected to hit 3 .22 million
in 2024. That's more than a 60 -fold increase
in just a decade. That's incredible growth. What
about beef semen sales? The numbers tell the
story there too. According to the National Association
of Animal Breeders, Domestic beef semen sales
have increased from 1 .2 million units in 2010
to 9 .4 million units in 2023. And here's what's
really telling. Of those 9 .4 million units,
7 .9 million were used in dairy cattle. That's
84 % of all beef semen sales going to dairy operations
rather than beef herds. Is this trend limited
to North America, or are we seeing it globally
as well? This is absolutely a global phenomenon.
European dairy sectors are experiencing a similar
transformation. According to an analysis of auction
records in Italy reported in the Journal of Dairy
Science, beef dairy calves were valued 50 -200
% more per kilogram than purebred Holstein or
Brown Swiss calves. Meanwhile, New Zealand and
Australian dairies have developed advanced genomic
selection systems that integrate beef breeding
decisions with overall herd improvement strategies.
So we're really seeing a fundamental shift in
how dairy operations manage their breeding programs
worldwide. Absolutely. And the economic benefits
extend far beyond simple calf sale premiums.
Research consistently demonstrates that crossbred
beef dairy cattle achieve better growth rates
and feed efficiency than dairy steers. That performance
advantage creates cascading value throughout
the beef production chain. Douglas, let's talk
about the actual performance differences between
pure dairy steers and these beef -dairy crosses.
What specific metrics should producers be aware
of? Great question, Bella. There are several
key performance traits where these crossbreds
outperform straight dairy animals. Research from
university studies has documented significant
advantages in average daily gain, with crossbreds
often achieving 8 -25 % better growth rates than
purebred dairy animals. And I imagine that translates
directly to fewer days on feed. Exactly right.
According to peer -reviewed research, beef -dairy
crossbreds typically spend fewer days on feed
compared to straight Holsteins. That represents
significant savings for feedlot operators, which
ultimately translates to higher prices they're
willing to pay for those crossbred calves. You
know, what about carcass characteristics? I know
that's been a historical challenge with dairy
steers. That's where we see some of the most
dramatic improvements. Dairy steers typically
have lower dressing percentages, while these
crossbreds consistently achieve better red meat
yield. Research from Texas Tech University found
that beef on dairy cattle produce carcasses with
greater red meat yield than conventional Holstein
steers, and high -yielding beef on dairy cattle
can yield as high or higher than conventional
beef cattle. Are all beef breeds created equal
when it comes to crossbreeding with dairy cattle?
Not at all, and this is a crucial point. Research
has shown significant differences between beef
breeds when used for crossbreeding with dairy
cattle. Some breeds contribute more to growth
rates, others to carcass quality, and some provide
better calving ease. The optimal genetics depend
on your specific marketing situation and buyer
preferences. Does this mean everyone should just
use popular beef breeds like Angus? Not necessarily.
The optimal genetics depend on your specific
marketing situation and buyer preferences. Some
buyers may pay premium prices for specific breed
crosses based on their finishing programs and
end markets. The key is understanding what your
particular buyers value most and selecting genetics
accordingly. And let's get practical, Douglas.
If a dairy producer is convinced and wants to
start or optimize a beef on dairy program, what
are the key steps they should take? I recommend
a structured implementation approach. First,
establish your baseline by documenting current
breeding costs, conception rates, and calf values.
Next, focus on genetic segmentation, analyzing
genomic data to identify ideal candidates for
beef breeding. Then move on to sire selection,
choosing appropriate beef bulls for different
cow segments. And what happens after those initial
planning stages? The next critical step is marketing
development. establishing buyer relationships
and value documentation systems. Only then should
you actually implement the strategic breeding
program with consistent documentation. Finally,
you'll need to evaluate your first calf crop,
analyzing birth data, calf vigor, and market
premiums. How do producers determine which cows
in their herd should be bred to beef versus dairy
bulls? The most sophisticated operations integrate
genomic testing to drive these decisions. This
approach, supported by research from the American
Dairy Science Association, allows you to identify
genetically superior heifers and cows for dairy
replacements, use sexed semen on top genetic
merit animals, and apply beef semen on genetically
inferior animals to maximize crossbred value.
Wouldn't breeding fewer replacement heifers slow
down genetic progress in the dairy herd? That's
the fascinating part, Bella. Despite what traditional
advisors might tell you, Breeding fewer replacement
heifers often accelerates genetic progress. Research
published in the Journal of Dairy Science found
that when only your top genomic animals produce
replacements using sexed semen, you can increase
your herd's genetic merit while producing fewer
total heifers. This counterintuitive finding
transforms how we think about replacement strategies.
What about marketing these crossbred calves?
Does it matter where and how you sell them? Absolutely
critical point. According to USDA Market News
Service data, there can be a significant price
difference between commodity and premium crossbred
calves, a difference directly attributable to
the marketing approach. Random selection of cows
for beef breeding and selling through traditional
auction channels captures only a fraction of
the potential value. So what marketing approaches
work best? Practical. Direct relationships with
specific calf raisers or feedlots who understand
the value proposition of your genetics can increase
premiums substantially. Documentation of health
protocols, genetic background, and creating consistent
groups add significant value. The highest performing
operations implement sophisticated marketing
programs that essentially transform commodity
calves into branded premium products. Douglas,
what are the most common mistakes you see dairy
farms making when implementing these programs?
Based on industry observations, there are three
critical mistakes that consistently undermine
potential returns. First, breeding the wrong
cows to beef sires. Random selection of cows
for beef breeding can limit both dairy genetic
progress and crossbred calf value. Instead, Genomic
testing should identify precisely which animals
should produce replacements and which should
produce terminal crossbreds. What's the second
common mistake? The second is failing to develop
direct marketing relationships. As I mentioned
earlier, selling through traditional auction
channels captures only a fraction of the potential
value. Direct relationships with buyers who understand
and value your specific genetics and management
practices can dramatically increase your premiums.
And the third mistake? Not having a strategy
for mitigating genetic risks. Research from the
Journal of Dairy Science indicates that improper
sire selection can lead to increased gestation
length, dystocia, and stillbirth rates. A comprehensive
approach should include careful sire selection,
particularly for heifers, avoidance of high birth
weight bulls, and continuous monitoring of calving
performance. Those sound like serious concerns.
How can producers ensure they're selecting the
right beef bulls? Work with reputable genetic
companies that offer beef -on -dairy specific
programs. These companies have done extensive
research to identify bulls that work well in
crossbreeding programs. Look for bulls with proven
calving ease, especially for use on heifers,
moderate birth weights, and strong growth and
carcass traits. And always track your results
and be willing to adjust your bull selections
based on actual performance in your herd. Can
you share some real -world examples of how different
implementation strategies affect the bottom line?
Research from multiple university extension services
has documented significant differences in financial
outcomes based on implementation approaches.
The key variables that drive financial performance
include the percentage of the herd bred to beef,
the selection method used to determine which
cows receive beef semen, and the marketing approach.
That would be really helpful. What does the basic
implementation look like compared to more advanced
approaches? A basic implementation might breed
20 % of the herd to beef using random lower producers
and sell through the sale barn, would use genomic
guided selection to breed 35 % of the herd to
beef and develop direct buyer relationships.
The difference in annual revenue can be substantial,
even for the same size operation. And how does
that compare to the most advanced approaches?
The most advanced programs typically breed 40
-50 % of the herd to beef using an integrated
genomic and sexed semen strategy. They participate
in value -added marketing programs and receive
premium prices per head. According to research
models like those from the University of Wisconsin,
these advanced implementations can generate significantly
higher returns on investment compared to basic
approaches. That's a substantial difference in
potential revenue based solely on implementation
strategy. Exactly. And that's why implementation
strategy matters so much. The difference represents
money left on the table without strategic planning.
Are there approaches from other countries that
North American producers could learn from? Absolutely.
The beef on dairy revolution is global, with
innovations emerging across major dairy regions.
New Zealand has pioneered integrated genomic
selection models that simultaneously optimize
dairy genetic progress and beef crossbred value.
According to research published in the Journal
of Dairy Science, their approach has demonstrated
significant genetic and economic gains when combining
genomic selection with strategic crossbreeding.
Can these approaches work in North America? The
core principles, genomic selection, targeted
breeding, and value -based marketing, translate
effectively across borders. The specific implementations
might need to be adapted for North American markets
and production systems. but there's tremendous
opportunity to accelerate program development
through international knowledge exchange. It
sounds like there's a lot we can learn from these
global experiences. This has been an absolutely
fascinating conversation, Douglas. We've covered
the dramatic growth of beef on dairy crossbreeding
from just 50 ,000 calves in 2014 to over 3 million
projected for this year. We've discussed... how
these programs can deliver substantial returns
when properly implemented. And we've outlined
the critical steps for successful implementation.
That's right, Bella. The beef on dairy revolution
has rapidly evolved from an innovative concept
to an industry standard. With 72 % of dairy farms
now incorporating beef genetics into their breeding
programs, according to that Purina survey, the
question isn't whether to adopt beef on dairy
strategies. Most producers are already there.
The real question is whether you're maximizing
returns through precise implementation based
on data -driven decisions. First, there's substantial
ROI potential through crossbred calf premiums
of $350 to $700 per head, plus savings from improved
conception rates and reduced heifer costs. Second,
use data -driven breeding. Genomic testing identifies
optimal cows for beef breeding while accelerating
dairy genetic progress. Third, market smarter
by developing direct buyer relationships and
documentation to boost premiums. Fourth, avoid
pitfalls like poor sire selection that risks
calving difficulties. And finally, consider adapting
strategies from international models like New
Zealand's integrated genomic approach. This is
clearly a transformative opportunity for dairy
producers. For our listeners who want to learn
more or get help implementing these strategies,
where would you recommend they start? I'd recommend
reaching out to your genetic provider to discuss
beef on dairy -specific sire options. Many of
the major AI companies now have specialized programs.
Also, contact your local extension service. Many
have developed resources specifically for beef
on dairy programs. And of course, visit the Bullvine
website at www .thebullvine .com for more articles
and resources on this topic. That brings us to
the end of today's episode of the Bullvine Podcast.
We hope this discussion gives you practical insights
to transform your breeding program into a profit
center. If you enjoyed this episode, please subscribe
wherever you get your podcasts and join us next
time for more cutting -edge dairy industry discussions.
I'm Bella. And I'm Douglas. Thanks for listening.