Welcome to the Bullvine Podcast, where we don't
just talk dairy, we disrupt it. Today we're diving
into the quiet revolution corporate giants didn't
see coming. While mega -dairies chased scale,
small farmers found gold in beef on dairy crossbreeding.
7 .9 million semen units later, We're exposing
how this trend is rewriting the rules of survival
for family farms. Get ready. This isn't your
grandfather's agriculture podcast. You know that
feeling, right? When you're looking at another
milk check and wondering, is this it? Is this
all there is? The early mornings, the fluctuating
milk prices, the struggle to get ahead. I hear
you. Dairy farmers are some of the hardest working
folks out there. Yeah, they really are. But what
if I told you there's something new happening
out there, a shift, maybe even a quiet revolution
brewing in the dairy barn? And this one, well,
it smells a lot more like grilling steak than
it does milking time. That's an image that might
catch a few folks off guard. I know, right? Today
we're going deep on the beef on dairy trend.
Yeah, this is fascinating stuff. It really is.
It's not necessarily about abandoning the dairy
life, but maybe adding a seriously profitable
side hustle or even a complete shift using everything
you've already got, the infrastructure, the know
-how. Makes you wonder, why didn't we think of
this sooner? Right. We've got some really interesting
data here that unpacks this whole beef on dairy
revolution. Yeah, it should be a fun deep dive.
And the goal here is pretty simple. We want to
explore just how big this trend has become, how
it's working for other farmers, and what it could
mean for you. You know, while everyone's always
talking about the big dairies and the mega trends,
it's usually the individual farmers who are out
there making things happen. Absolutely. They're
the ones driving these changes. And get this,
we're talking 7 .9 million units of beef semen
being used in dairy herds. annually. That's huge.
It's not a small potatoes operation anymore.
Not at all. That puts it neck and neck with gender
-selected dairy semen. Makes you wonder, did
the so -called dairy establishment even see this
coming? Seems like they might have been a little
too focused on milk yields and missed this whole
other world developing right under their noses.
Yeah, and it really is like a breeding bombshell,
a fundamental shift in how dairy farms are thinking
about their breeding strategies. So let's talk
numbers because they paint a pretty clear picture
of what's going on. Let's do it. All right, so
the NAAB, that's the National Association of
Animal Breeders, they reported that domestic
beef semen sales hit a record high in 2023. Record
high, huh? Yep, 9 .4 million units. And that's
the sixth year in a row that we've seen record
sales. Wow. So this is definitely a trend and
not just a blip. Not a blip at all. But here's
the kicker. Of those 9 .4 million, a whopping
7 .9 million were used in dairy herds. So the
dairy industry is really driving this beef semen
boom. Big time. And hold on to your hats because
that number is up almost a million units from
the previous year. So it's accelerating too,
not slowing down at all. Nope, not even a little
bit. Okay. So how do the different semen types
stack up against each other? I'm curious. Well,
at the top of the heap, we've still got gender
selected dairy semen, 8 .4 million units holding
steady in that number one spot. Still king of
the hill for now anyway. For now, yeah. Hot on
its tail is beef on dairy, like we've been saying.
And that's where we see this crazy growth, up
a million units to 7 .9 million. So it's basically
a photo finish at this point between those two.
Pretty much, yeah. And then down in third place,
you've got conventional dairy semen at 7 million
units, and that one's actually declining. It
makes you think, where are things headed long
term for dairy breeding? It really does. It seems
like the priorities are changing. And then there's
another one that's interesting. Heterospermic
beef. Heterospermic beef. Say that 10 times fast.
Heterospermic beef. Heterospermic beef. Yeah,
maybe not. I think I'm good. But really, what
is that? I'm not familiar. It's basically a mix
of semen from multiple beef sires all in a single
straw, like a beef sire cocktail to create calves.
That's a pretty cool idea. And it's actually
become the second largest beef breed sold overall.
at 1 .8 million units. 1 .3 million of those
are domestic sales. Only Angus beats that. Wow.
That's impressive. But what's the advantage of
that multi -sire approach? It really comes down
to genetic diversity. By using a blend of different
sires, farmers can get calves that have a wider
range of those really desirable beef traits.
So potentially more robust calves, factor growth,
things like that. Exactly. Makes those crossbred
calves even more valuable. And to really put
this whole thing in perspective, let's think
back to 2015 for a second. Back then, the all
-time high for beef semen sales was only 2 .5
million units. So we've seen almost a four -fold
increase in less than a decade. Yeah, that's
right. It's crazy how fast things have changed.
So it's clear dairy farmers are embracing this
alternative. It's not just a gradual shift. It's
a full -blown pivot. It's like they woke up and
said, hey, there's a whole other way to do this.
Exactly. So we know the numbers. We see the trends.
But what does this actually look like on the
ground on a real working farm? Let's talk about
some real world transitions and get into the
nitty gritty. Love it. Let's hear about some
success stories. All right. So we came across
this guy, Logan Edenfield. He grew up on a 50
cow dairy farm in Ohio and they made the switch
to beef production. And now he's using what he
learned to help other farmers as a consultant
with equity livestock. So he's lived through
this firsthand. That's valuable. Oh, incredibly
valuable. He knows what it takes to make this
kind of change. And his advice for farmers thinking
about exiting dairy is to really change their
mindset when it comes to breeding. In what way?
Well, he says instead of breeding for replacements,
you need to breed for value. Breed every cow
to an Angus bull. That was his family strategy,
and it seems to be working out for a lot of folks.
Angus, huh? I mean, they're known for those black
-eyed calves, right? Yeah. Those are the moneymakers.
Yeah. Edenfield points out that those black -hided
calves consistently bring in the top dollar.
Plus, when you breed everything to beef, you're
setting yourself up for a natural end to needing
dairy replacements. So you're creating your own
retirement timeline. Yeah, exactly. You've got
a clear horizon in sight. But in the meantime,
you're selling calves that are worth a lot more.
It's smart. Makes sense. You're gradually winding
down the dairy operation while maximizing your
revenue along the way. And there's another piece
to this. Edenfield's family learned a really
important lesson about timing. He's a big advocate
for selling those beef cross calves early, like
three to five days old. Really? That young? Yep.
It seems counterintuitive, right? But he says
it's all about maximizing profit and minimizing
input costs. So you're not putting in all the
time, feed, and money to raise them. Exactly.
And he says the demand for those young beef cross
calves is strong. Plus, think about the price
difference. A typical Holstein bull calf might
only get you about $60. But those black beef
cross calves, you could be looking at $100 to
$300. Whoa, that's a big jump. Huge. And it's
cash in hand when you need it most, especially
if you're transitioning out of dairy and maybe
feeling a little financially squeezed. It's a
real game changer. It's giving a lot of dairy
farmers a reason to take a second look at their
breeding strategies. Absolutely. OK, so we've
seen how individual farms are making this work,
but let's zoom out a bit and look at the big
picture. What are the advantages of these crossbreds
when it comes to efficiency, especially for smaller
operations? Because in agriculture, efficiency
is king, right? Oh, absolutely. And this is where
things get really interesting. There's research
coming out of Texas Tech University showing that
the average daily gain and the feed -to -gain
ratio for beef on dairy crossbreads are not just
better than purebred Holsteins. They're actually
on par with conventional beef cattle. Now, that's
surprising. So we're not sacrificing efficiency
for this model. Nope, not at all. These animals
are turning feed into meat just as efficiently
as their beef counterparts, which is key for
any livestock operation, big or small. And for
those smaller farms, those efficiency gains can
be a real lifesaver. We're talking about 20 %
faster finishing times compared to Holstein's.
So less time to market, less feed used overall.
That's huge, especially if you've got limited
resources. Exactly. It's about doing more with
less, which is something a lot of smaller farms
are having to figure out these days. And here's
another thing that might surprise you, the temperament
of these beef on dairy calves. I wouldn't have
thought about that. Well, since they're often
raised in the dairy system, they tend to be pretty
docile, easier to handle than your typical beef
breeds. Really? That's a bonus I wouldn't have
expected. Less stress for the farmer, too. Totally.
Especially if you're thinking about transitioning
into beef production later in life. Or if you're
already juggling an off -farm job. Right. Yeah.
It just makes things a little easier to manage.
Okay. We've covered the individual stories and
the efficiency piece. Now let's get down to brass
tacks. The economics. Is it actually worth it
to switch from dairy to beef on dairy? That's
the question everyone wants answered. Show me
the money. I like it. Let's break it down. On
the dairy side, you've got constant facility
upgrades, equipment maintenance, regulations
to keep up with. You could easily be spending
$500 to $1 ,500 per stall just to stay afloat.
And that's before you even factor in the labor.
Milking cows is a seven -day -a -week job. No
days off. And for a 50 -cow herd, you're looking
at 40 to 60 hours a week, maybe even more. And
while the milk checks are coming in, the margins
aren't always what you'd hope for. It's tough
out there for dairy farmers. No doubt about it.
So let's look at the other side of the coin,
beef on dairy. If you're smart about it and use
your existing facilities, conversion costs can
be really minimal. We're talking maybe $100 to
$300 per head capacity. That's a big difference
right here. Huge. And labor. Forget... 40 to
60 hours a week, you might be looking at 10 to
15 hours for a similar number of animals. Sounds
like a dream come true. Right. Now, granted,
the return on your investment is a little longer.
It'll take 12 to 18 months to get finished cattle
ready for market. That's something to consider
for sure. You need to have a plan for that transition
period. Absolutely. Good cash flow management
is key. But here's the real kicker, the profit
potential. In dairy, you're looking at maybe
$1 .50 to $2 .50 per hundredweight of milk in
today's world. But with beef on dairy, especially
if you're direct marketing, we're talking $300
to $600 per head, possibly even more. Now that's
what I'm talking about. Those are some serious
margins. It's a whole different ballgame. And
it's not just anecdotal either. Cornell Pro Dairy,
they've been looking into this and they're saying
that converting those existing dairy facilities
for beef often doesn't require a ton of money.
So you're really working with what you've got.
Smart. And they're also saying that the labor
reduction is a big draw for a lot of farmers.
Less stress, more time with the family, maybe
even a chance to get off the farm and do something
else for a change. A little more work -life balance.
Who wouldn't want that? Exactly. The University
of Wisconsin Center for Dairy Profitability,
they found similar things. They're talking about
less stress, more flexibility in your schedule,
and potentially even higher returns on your assets
if you're doing smaller scale direct marketing
with beef. It's definitely worth considering.
It sounds like this could be a real win -win
for a lot of farmers. It could be. Okay, so it's
not just farmers and researchers who are seeing
this trend. Let's talk about the boots on the
ground folks, the extension specialists. Ryan
Sterry, he's with UW Extension, and he's noticed
way more interest in his beef production workshops,
especially in areas that have always been dairy
focused. People are really starting to pay attention.
They are. And then you've got Scott Ellevold.
He's with North Star Select Sires, and he's a
beef producer himself. Okay, so he's got skin
in the game. Interesting. He's seeing a lot of
dairy farmers who are either going all in on
beef or taking a more strategic approach, breeding
their best cows with sexed semen for replacements,
but then breeding their lower end cows to beef
bulls for those crossbred calves. Smart move.
You're getting the best of both worlds that way.
Absolutely. And Elivald's another one who's big
on genomic testing. He says it helps farmers
figure out which heifers have the best genetics
early on. Makes those breeding decisions a lot
easier and more efficient. You know what you're
working with right from the start. Okay, let's
talk about a really important part of making
this beef on dairy thing work. Cutting out the
middleman. Direct marketing. That's where the
real money is, right? It can be. Instead of selling
your beef into the commodity market, you're selling
direct to consumers. So you set your own prices,
you build relationships with your customers.
Exactly. And a lot of these former daily farmers,
especially those closer to cities, They're finding
that they can sell whole or half animals directly
to consumers at a much higher price than they'd
get through traditional channels. So they're
not just competing on price anymore. They're
selling quality. They're selling the story of
their farm, the connection to the land. It's
a whole different way of doing business. And
what's really cool is that family farmers are
realizing they can actually make more money with
fewer animals this way. It's not about quantity.
It's about quality and connection. It's about
bringing back the idea of the local butcher,
the farmer's market. Exactly. But here's the
thing. Location, location, location. It plays
a huge role in how successful you can be with
this model. Makes sense. You need to be where
the customers are and you need to have the infrastructure
to support it. Right. The Northeast and the Mid
-Atlantic. They're in a sweet spot right now.
They've got the highest concentration of those
smaller USDA inspected processors, which are
a must for direct consumer sales. Plus, they're
near big cities with people who have money to
spend and a growing interest in local food. So
they're in a prime position to make this work.
Absolutely. The upper Midwest, Wisconsin, Minnesota,
Michigan, they've also got some advantages. strong
processing infrastructure, and tons of experience
in dairy farming. They've got the facilities
and the know -how. That history of agriculture
really gives them a leg up. It does. The West
and the Plains states, they face some bigger
challenges with processing, not as many smaller
USDA -inspected facilities out there. So it's
important to do your research, see what's available
in your area before jumping in headfirst. Absolutely.
And down south, the premiums for direct marketed
beef tend to be lower, although there are pockets
where it's taking off, especially in the bigger
cities. It's a mixed bag. So know your market.
That's the key takeaway. 100%. But even with
all that said, there's something else that's
pretty exciting about beef on dairy. Something
that the big beef guys might have a tough time
replicating. The quality of the meat. Oh, interesting.
Tell me more. Well, Texas Tech University has
been doing research and they're finding that
these hybrid cattle can actually produce more
beef and better beef. And without hurting milk
production. That's right. And Lisa Pedersen,
who's a beef quality assurance specialist up
at North Dakota State University, she says that
dairy steers are known for producing some of
the highest quality grades of beef, like prime
and high choice. So we're talking premium cuts
here, the kind of stuff that steak lovers drool
over. Exactly. That gives former dairy farmers
a real edge in those high -end direct markets.
They can compete on quality, not just price.
It is. And the really cool thing is, these crossbreds
seem to inherit that marbling trait from their
Holstein side, which is what gives the beef that
tenderness and flavor. But they also finish faster
than purebred dairy steers. So it's a win -win
for both the farmer and the consumer. More efficient
production, better tasting beef. It's a good
combo. So when you look at the economics of it
all, it's like a classic David versus Goliath
story. Small, nimble, beef on dairy producers
going up against the massive commodity beef operations.
And who's winning? Well, that's the exciting
part. The little guys might actually have an
advantage here. They're not bound by the same
rules. They don't need to produce massive volumes
to make a profit. They're playing a different
game altogether. Exactly. And it seems like the
big guys are starting to notice. Cargill, for
example, they've launched a three -year program
called the Dairy Beef Accelerator to study this
whole beef on dairy thing. They're partnering
with Nestle on it. So they're finally waking
up and smelling the steaks, I guess. Yeah, I
guess you could say that. And their research
is backing up what a lot of smaller producers
already know. They're finding that these crossbred
calves are efficient and they produce great beef.
And get this, Cargill is even talking about sustainability
as a key driver behind their program. So they're
realizing this isn't just a niche thing. It could
be a real game changer for the whole industry.
And that raises an interesting question for all
the smaller producers out there. Can you establish
yourself and build a loyal customer base before
the big guys figure out how to scale this up
and potentially commoditize it? That's the real
challenge. It's a race against time. It is. It's
funny, isn't it? For years, the message was get
big or get out. Now it's the smaller farms who
are finding these innovative solutions and the
big guys are playing catch up. It just goes to
show you, you don't always need to be the biggest
to be the best. Sometimes it's about being adaptable,
being creative and finding those niche opportunities.
Absolutely. OK, let's be real, though. It's not
all smooth sailing with this beef on dairy thing.
There are some real challenges that farmers need
to be aware of. Challenges are part of farming.
It wouldn't be farming without them. Ain't that
the truth. So first off, there's the processing
bottleneck. It can be a real pain finding USDA
-inspected facilities, especially smaller ones
that can handle direct -to -consumer orders.
And with all the consolidation in the meatpacking
industry, it's not getting any easier. So you
might have to get creative, build relationships
with smaller processors, maybe even look into
mobile processing units in some areas. Yeah,
you got to hustle. And then there's the issue
of residues. Lisa Pedersen from NDSU, she points
out that dairy cows have a much higher rate of
residue violations than beef cows. So if you're
making the switch, you need to be extra careful
about withdrawal times for any medications and
keep meticulous records. No room for error there.
Not at all. Then there's the worry about market
saturation. If too many farmers jump on the beef
on dairy bandwagon, the prices could start to
drop. So you need to think about how to make
your beef stand out, how to create a brand, a
story that resonates with consumers. It's not
just about selling beef. It's about selling an
experience, a connection to the farm. Right.
And don't forget, consumer tastes can change.
People might be willing to pay a premium for
local beef today, but will they tomorrow? So
you have to be adaptable. build those relationships,
and always be thinking about how to provide value.
You have to be more than just a farmer. You have
to be a marketer, a salesperson, a customer service
expert, all rolled into one. And lastly, let's
not forget about the money. Transitioning to
beef on dairy can require some upfront investment,
even if it's minimal. So you need to plan carefully
and think about your cash flow. Make sure you
can weather that initial period before the beef
checks start rolling in. Now, despite all those
challenges, there's something really positive
about this beef on dairy model, the sustainability
aspect. Yeah, people are really starting to pay
attention to where their food comes from and
how it's produced. And this model seems to hit
the sweet spot. It's good for the farmer. It's
good for the environment. A real win -win. A
2024 study that was published in Semantic Scholar,
it basically said that we've got the technology
to change how we produce animal protein. The
trick is finding systems that are both good for
the bottom line and good for the planet. And
beef on dairy, it seems to fit the bill. So it's
not just about economics. It's about doing things
the right way. Right. And that's a powerful message
that you can share with your customers. They
want to know that their food is coming from a
good place. It's about transparency. It's about
values. So what's the takeaway for dairy farmers?
This beef on dairy revolution is happening. Are
you going to be a part of it? The train's leaving
the station. Are you going to get on board? I
like that. And look, I'm not saying everyone
needs to switch to beef on dairy tomorrow, but
it's worth exploring, doing your research and
seeing if it's the right fit for you, because
that window of opportunity, it might not be open
forever. So if you're intrigued, what can you
do? Where can you start? Great question. First
things first, talk to your local extension office.
They're a gold mine of information, and they
often have workshops specifically for dairy farmers
who are interested in beef production. Second,
find out what your processing options are. Locate
those USDA -inspected facilities in your area
and figure out what their schedules and capabilities
are. Get your ducks in a row. Start building
those relationships early. Absolutely. Third,
if you're thinking about a gradual transition,
look into genomic testing. It can help you identify
which cows to breed for beef and which to keep
for dairy. Work smarter, not harder. Exactly.
Fourth, start connecting with direct marketing
networks in your area. Find those farmers markets,
those co -ops, those restaurants that are looking
for local beef. And lastly, check out potential
funding opportunities like the USDA Value -Added
Producer Grants. They can help you get started.
It sounds like there's a lot of support out there
for farmers who want to make this transition.
There really is. Now, before you jump in with
both feet, there are some tough questions you
need to ask yourself. First off, can you realistically
access processing facilities? And is there enough
demand for direct marketed beef in your area?
Can your existing facilities be adapted for beef
production without breaking the bank? Practical
considerations. Exactly. And here's the big one.
Can you handle the longer production cycle of
beef? Do you have a good cash flow plan? And
are you ready to become a marketer? Because this
isn't just about raising animals anymore. It's
about building a brand, connecting with customers,
telling your story. It's a whole new way of thinking
about farming. But here's the really exciting
thing about this whole beef on dairy movement.
It's a chance for small and medium -sized family
farms to thrive. While the big corporations were
busy getting bigger, these farmers found a different
way forward, a more sustainable way. They're
proving that you don't need to be a giant to
succeed. You just need to be smart. be adaptable,
and be willing to try something new. And ultimately,
that's what it's all about. So as you're out
there in your barn tonight, take a look around
and ask yourself, could this be the future of
my farm? Could this be the way I keep my family
farm alive for generations to come? The future
of farming might not be what we always thought
it would be. It might be something different,
something better. It just might be. So what's
one small step you can take this week to explore
this new path? Think about it. If this beef on
dairy rebellion lit a fire under your overalls,
hit subscribe, rate us, review us, and tell every
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Bullvine. Until next time, stay loud, stay proud,
and never let them say get big or get out without
a fight.