WEBVTT 00:00:10.569 --> 00:00:13.289 Welcome to the Bullvine Podcast, where we don't 00:00:13.289 --> 00:00:17.030 just talk dairy, we disrupt it. Today we're diving 00:00:17.030 --> 00:00:19.469 into the quiet revolution corporate giants didn't 00:00:19.469 --> 00:00:22.170 see coming. While mega -dairies chased scale, 00:00:22.429 --> 00:00:25.550 small farmers found gold in beef on dairy crossbreeding. 00:00:25.949 --> 00:00:29.660 7 .9 million semen units later, We're exposing 00:00:29.660 --> 00:00:32.119 how this trend is rewriting the rules of survival 00:00:32.119 --> 00:00:35.939 for family farms. Get ready. This isn't your 00:00:35.939 --> 00:00:38.079 grandfather's agriculture podcast. You know that 00:00:38.079 --> 00:00:40.619 feeling, right? When you're looking at another 00:00:40.619 --> 00:00:43.259 milk check and wondering, is this it? Is this 00:00:43.259 --> 00:00:47.179 all there is? The early mornings, the fluctuating 00:00:47.179 --> 00:00:50.700 milk prices, the struggle to get ahead. I hear 00:00:50.700 --> 00:00:52.960 you. Dairy farmers are some of the hardest working 00:00:52.960 --> 00:00:55.759 folks out there. Yeah, they really are. But what 00:00:55.759 --> 00:00:57.500 if I told you there's something new happening 00:00:57.500 --> 00:01:00.359 out there, a shift, maybe even a quiet revolution 00:01:00.359 --> 00:01:04.099 brewing in the dairy barn? And this one, well, 00:01:04.219 --> 00:01:06.340 it smells a lot more like grilling steak than 00:01:06.340 --> 00:01:08.719 it does milking time. That's an image that might 00:01:08.719 --> 00:01:11.859 catch a few folks off guard. I know, right? Today 00:01:11.859 --> 00:01:14.200 we're going deep on the beef on dairy trend. 00:01:14.480 --> 00:01:16.840 Yeah, this is fascinating stuff. It really is. 00:01:16.939 --> 00:01:19.379 It's not necessarily about abandoning the dairy 00:01:19.379 --> 00:01:22.099 life, but maybe adding a seriously profitable 00:01:22.099 --> 00:01:25.760 side hustle or even a complete shift using everything 00:01:25.760 --> 00:01:27.599 you've already got, the infrastructure, the know 00:01:27.599 --> 00:01:29.260 -how. Makes you wonder, why didn't we think of 00:01:29.260 --> 00:01:31.739 this sooner? Right. We've got some really interesting 00:01:31.739 --> 00:01:34.260 data here that unpacks this whole beef on dairy 00:01:34.260 --> 00:01:36.260 revolution. Yeah, it should be a fun deep dive. 00:01:36.700 --> 00:01:38.620 And the goal here is pretty simple. We want to 00:01:38.620 --> 00:01:41.680 explore just how big this trend has become, how 00:01:41.680 --> 00:01:43.900 it's working for other farmers, and what it could 00:01:43.900 --> 00:01:46.480 mean for you. You know, while everyone's always 00:01:46.480 --> 00:01:48.560 talking about the big dairies and the mega trends, 00:01:48.819 --> 00:01:50.959 it's usually the individual farmers who are out 00:01:50.959 --> 00:01:52.920 there making things happen. Absolutely. They're 00:01:52.920 --> 00:01:55.219 the ones driving these changes. And get this, 00:01:55.239 --> 00:02:00.359 we're talking 7 .9 million units of beef semen 00:02:00.359 --> 00:02:04.319 being used in dairy herds. annually. That's huge. 00:02:04.640 --> 00:02:06.620 It's not a small potatoes operation anymore. 00:02:06.780 --> 00:02:09.460 Not at all. That puts it neck and neck with gender 00:02:09.460 --> 00:02:11.919 -selected dairy semen. Makes you wonder, did 00:02:11.919 --> 00:02:14.520 the so -called dairy establishment even see this 00:02:14.520 --> 00:02:16.039 coming? Seems like they might have been a little 00:02:16.039 --> 00:02:18.319 too focused on milk yields and missed this whole 00:02:18.319 --> 00:02:20.180 other world developing right under their noses. 00:02:20.319 --> 00:02:23.180 Yeah, and it really is like a breeding bombshell, 00:02:23.180 --> 00:02:25.819 a fundamental shift in how dairy farms are thinking 00:02:25.819 --> 00:02:28.000 about their breeding strategies. So let's talk 00:02:28.000 --> 00:02:30.120 numbers because they paint a pretty clear picture 00:02:30.120 --> 00:02:32.120 of what's going on. Let's do it. All right, so 00:02:32.120 --> 00:02:34.400 the NAAB, that's the National Association of 00:02:34.400 --> 00:02:36.219 Animal Breeders, they reported that domestic 00:02:36.219 --> 00:02:40.300 beef semen sales hit a record high in 2023. Record 00:02:40.300 --> 00:02:44.259 high, huh? Yep, 9 .4 million units. And that's 00:02:44.259 --> 00:02:46.219 the sixth year in a row that we've seen record 00:02:46.219 --> 00:02:48.840 sales. Wow. So this is definitely a trend and 00:02:48.840 --> 00:02:51.159 not just a blip. Not a blip at all. But here's 00:02:51.159 --> 00:02:54.819 the kicker. Of those 9 .4 million, a whopping 00:02:54.819 --> 00:02:58.800 7 .9 million were used in dairy herds. So the 00:02:58.800 --> 00:03:01.460 dairy industry is really driving this beef semen 00:03:01.460 --> 00:03:04.050 boom. Big time. And hold on to your hats because 00:03:04.050 --> 00:03:06.490 that number is up almost a million units from 00:03:06.490 --> 00:03:08.250 the previous year. So it's accelerating too, 00:03:08.349 --> 00:03:10.330 not slowing down at all. Nope, not even a little 00:03:10.330 --> 00:03:13.090 bit. Okay. So how do the different semen types 00:03:13.090 --> 00:03:16.270 stack up against each other? I'm curious. Well, 00:03:16.330 --> 00:03:18.169 at the top of the heap, we've still got gender 00:03:18.169 --> 00:03:22.469 selected dairy semen, 8 .4 million units holding 00:03:22.469 --> 00:03:24.449 steady in that number one spot. Still king of 00:03:24.449 --> 00:03:27.580 the hill for now anyway. For now, yeah. Hot on 00:03:27.580 --> 00:03:29.340 its tail is beef on dairy, like we've been saying. 00:03:29.439 --> 00:03:31.979 And that's where we see this crazy growth, up 00:03:31.979 --> 00:03:34.819 a million units to 7 .9 million. So it's basically 00:03:34.819 --> 00:03:36.840 a photo finish at this point between those two. 00:03:36.919 --> 00:03:39.439 Pretty much, yeah. And then down in third place, 00:03:39.479 --> 00:03:41.780 you've got conventional dairy semen at 7 million 00:03:41.780 --> 00:03:43.939 units, and that one's actually declining. It 00:03:43.939 --> 00:03:46.900 makes you think, where are things headed long 00:03:46.900 --> 00:03:49.830 term for dairy breeding? It really does. It seems 00:03:49.830 --> 00:03:51.530 like the priorities are changing. And then there's 00:03:51.530 --> 00:03:53.370 another one that's interesting. Heterospermic 00:03:53.370 --> 00:03:55.750 beef. Heterospermic beef. Say that 10 times fast. 00:03:56.550 --> 00:04:00.229 Heterospermic beef. Heterospermic beef. Yeah, 00:04:00.250 --> 00:04:02.870 maybe not. I think I'm good. But really, what 00:04:02.870 --> 00:04:05.189 is that? I'm not familiar. It's basically a mix 00:04:05.189 --> 00:04:08.169 of semen from multiple beef sires all in a single 00:04:08.169 --> 00:04:10.870 straw, like a beef sire cocktail to create calves. 00:04:11.069 --> 00:04:13.009 That's a pretty cool idea. And it's actually 00:04:13.009 --> 00:04:16.089 become the second largest beef breed sold overall. 00:04:16.569 --> 00:04:21.230 at 1 .8 million units. 1 .3 million of those 00:04:21.230 --> 00:04:24.230 are domestic sales. Only Angus beats that. Wow. 00:04:24.930 --> 00:04:27.129 That's impressive. But what's the advantage of 00:04:27.129 --> 00:04:29.269 that multi -sire approach? It really comes down 00:04:29.269 --> 00:04:31.850 to genetic diversity. By using a blend of different 00:04:31.850 --> 00:04:34.750 sires, farmers can get calves that have a wider 00:04:34.750 --> 00:04:36.970 range of those really desirable beef traits. 00:04:37.250 --> 00:04:39.910 So potentially more robust calves, factor growth, 00:04:40.110 --> 00:04:42.990 things like that. Exactly. Makes those crossbred 00:04:42.990 --> 00:04:45.910 calves even more valuable. And to really put 00:04:45.910 --> 00:04:47.810 this whole thing in perspective, let's think 00:04:47.810 --> 00:04:51.389 back to 2015 for a second. Back then, the all 00:04:51.389 --> 00:04:54.490 -time high for beef semen sales was only 2 .5 00:04:54.490 --> 00:04:57.790 million units. So we've seen almost a four -fold 00:04:57.790 --> 00:05:00.850 increase in less than a decade. Yeah, that's 00:05:00.850 --> 00:05:04.069 right. It's crazy how fast things have changed. 00:05:04.250 --> 00:05:07.089 So it's clear dairy farmers are embracing this 00:05:07.089 --> 00:05:09.470 alternative. It's not just a gradual shift. It's 00:05:09.470 --> 00:05:11.810 a full -blown pivot. It's like they woke up and 00:05:11.810 --> 00:05:13.529 said, hey, there's a whole other way to do this. 00:05:13.850 --> 00:05:16.550 Exactly. So we know the numbers. We see the trends. 00:05:16.709 --> 00:05:18.790 But what does this actually look like on the 00:05:18.790 --> 00:05:21.790 ground on a real working farm? Let's talk about 00:05:21.790 --> 00:05:24.029 some real world transitions and get into the 00:05:24.029 --> 00:05:25.829 nitty gritty. Love it. Let's hear about some 00:05:25.829 --> 00:05:27.810 success stories. All right. So we came across 00:05:27.810 --> 00:05:30.110 this guy, Logan Edenfield. He grew up on a 50 00:05:30.110 --> 00:05:33.029 cow dairy farm in Ohio and they made the switch 00:05:33.029 --> 00:05:35.709 to beef production. And now he's using what he 00:05:35.709 --> 00:05:37.750 learned to help other farmers as a consultant 00:05:37.750 --> 00:05:40.209 with equity livestock. So he's lived through 00:05:40.209 --> 00:05:43.100 this firsthand. That's valuable. Oh, incredibly 00:05:43.100 --> 00:05:46.120 valuable. He knows what it takes to make this 00:05:46.120 --> 00:05:49.160 kind of change. And his advice for farmers thinking 00:05:49.160 --> 00:05:51.860 about exiting dairy is to really change their 00:05:51.860 --> 00:05:53.860 mindset when it comes to breeding. In what way? 00:05:54.079 --> 00:05:56.500 Well, he says instead of breeding for replacements, 00:05:56.660 --> 00:05:59.639 you need to breed for value. Breed every cow 00:05:59.639 --> 00:06:02.680 to an Angus bull. That was his family strategy, 00:06:02.939 --> 00:06:04.959 and it seems to be working out for a lot of folks. 00:06:05.220 --> 00:06:07.399 Angus, huh? I mean, they're known for those black 00:06:07.399 --> 00:06:09.399 -eyed calves, right? Yeah. Those are the moneymakers. 00:06:09.579 --> 00:06:12.069 Yeah. Edenfield points out that those black -hided 00:06:12.069 --> 00:06:14.470 calves consistently bring in the top dollar. 00:06:14.629 --> 00:06:17.069 Plus, when you breed everything to beef, you're 00:06:17.069 --> 00:06:19.149 setting yourself up for a natural end to needing 00:06:19.149 --> 00:06:21.350 dairy replacements. So you're creating your own 00:06:21.350 --> 00:06:24.069 retirement timeline. Yeah, exactly. You've got 00:06:24.069 --> 00:06:26.810 a clear horizon in sight. But in the meantime, 00:06:27.069 --> 00:06:28.810 you're selling calves that are worth a lot more. 00:06:29.009 --> 00:06:32.029 It's smart. Makes sense. You're gradually winding 00:06:32.029 --> 00:06:34.689 down the dairy operation while maximizing your 00:06:34.689 --> 00:06:36.740 revenue along the way. And there's another piece 00:06:36.740 --> 00:06:39.040 to this. Edenfield's family learned a really 00:06:39.040 --> 00:06:41.980 important lesson about timing. He's a big advocate 00:06:41.980 --> 00:06:44.300 for selling those beef cross calves early, like 00:06:44.300 --> 00:06:47.379 three to five days old. Really? That young? Yep. 00:06:47.689 --> 00:06:50.129 It seems counterintuitive, right? But he says 00:06:50.129 --> 00:06:52.689 it's all about maximizing profit and minimizing 00:06:52.689 --> 00:06:55.290 input costs. So you're not putting in all the 00:06:55.290 --> 00:06:58.170 time, feed, and money to raise them. Exactly. 00:06:58.430 --> 00:07:01.110 And he says the demand for those young beef cross 00:07:01.110 --> 00:07:03.790 calves is strong. Plus, think about the price 00:07:03.790 --> 00:07:06.509 difference. A typical Holstein bull calf might 00:07:06.509 --> 00:07:10.230 only get you about $60. But those black beef 00:07:10.230 --> 00:07:13.269 cross calves, you could be looking at $100 to 00:07:13.269 --> 00:07:16.889 $300. Whoa, that's a big jump. Huge. And it's 00:07:16.889 --> 00:07:18.829 cash in hand when you need it most, especially 00:07:18.829 --> 00:07:21.290 if you're transitioning out of dairy and maybe 00:07:21.290 --> 00:07:23.709 feeling a little financially squeezed. It's a 00:07:23.709 --> 00:07:25.610 real game changer. It's giving a lot of dairy 00:07:25.610 --> 00:07:27.769 farmers a reason to take a second look at their 00:07:27.769 --> 00:07:30.009 breeding strategies. Absolutely. OK, so we've 00:07:30.009 --> 00:07:31.889 seen how individual farms are making this work, 00:07:31.930 --> 00:07:33.930 but let's zoom out a bit and look at the big 00:07:33.930 --> 00:07:37.430 picture. What are the advantages of these crossbreds 00:07:37.430 --> 00:07:39.910 when it comes to efficiency, especially for smaller 00:07:39.910 --> 00:07:42.029 operations? Because in agriculture, efficiency 00:07:42.029 --> 00:07:45.149 is king, right? Oh, absolutely. And this is where 00:07:45.149 --> 00:07:47.569 things get really interesting. There's research 00:07:47.569 --> 00:07:50.189 coming out of Texas Tech University showing that 00:07:50.189 --> 00:07:52.930 the average daily gain and the feed -to -gain 00:07:52.930 --> 00:07:56.029 ratio for beef on dairy crossbreads are not just 00:07:56.029 --> 00:07:58.810 better than purebred Holsteins. They're actually 00:07:58.810 --> 00:08:01.550 on par with conventional beef cattle. Now, that's 00:08:01.550 --> 00:08:03.410 surprising. So we're not sacrificing efficiency 00:08:03.410 --> 00:08:06.779 for this model. Nope, not at all. These animals 00:08:06.779 --> 00:08:09.740 are turning feed into meat just as efficiently 00:08:09.740 --> 00:08:12.639 as their beef counterparts, which is key for 00:08:12.639 --> 00:08:16.040 any livestock operation, big or small. And for 00:08:16.040 --> 00:08:18.680 those smaller farms, those efficiency gains can 00:08:18.680 --> 00:08:21.769 be a real lifesaver. We're talking about 20 % 00:08:21.769 --> 00:08:24.170 faster finishing times compared to Holstein's. 00:08:24.250 --> 00:08:26.610 So less time to market, less feed used overall. 00:08:26.769 --> 00:08:28.769 That's huge, especially if you've got limited 00:08:28.769 --> 00:08:31.009 resources. Exactly. It's about doing more with 00:08:31.009 --> 00:08:33.889 less, which is something a lot of smaller farms 00:08:33.889 --> 00:08:36.049 are having to figure out these days. And here's 00:08:36.049 --> 00:08:38.309 another thing that might surprise you, the temperament 00:08:38.309 --> 00:08:40.330 of these beef on dairy calves. I wouldn't have 00:08:40.330 --> 00:08:42.370 thought about that. Well, since they're often 00:08:42.370 --> 00:08:44.549 raised in the dairy system, they tend to be pretty 00:08:44.549 --> 00:08:46.870 docile, easier to handle than your typical beef 00:08:46.870 --> 00:08:50.120 breeds. Really? That's a bonus I wouldn't have 00:08:50.120 --> 00:08:52.860 expected. Less stress for the farmer, too. Totally. 00:08:52.980 --> 00:08:54.879 Especially if you're thinking about transitioning 00:08:54.879 --> 00:08:57.179 into beef production later in life. Or if you're 00:08:57.179 --> 00:08:59.220 already juggling an off -farm job. Right. Yeah. 00:08:59.360 --> 00:09:01.080 It just makes things a little easier to manage. 00:09:02.659 --> 00:09:05.379 Okay. We've covered the individual stories and 00:09:05.379 --> 00:09:08.320 the efficiency piece. Now let's get down to brass 00:09:08.320 --> 00:09:12.620 tacks. The economics. Is it actually worth it 00:09:12.620 --> 00:09:15.799 to switch from dairy to beef on dairy? That's 00:09:15.799 --> 00:09:18.080 the question everyone wants answered. Show me 00:09:18.080 --> 00:09:21.269 the money. I like it. Let's break it down. On 00:09:21.269 --> 00:09:23.450 the dairy side, you've got constant facility 00:09:23.450 --> 00:09:25.389 upgrades, equipment maintenance, regulations 00:09:25.389 --> 00:09:27.830 to keep up with. You could easily be spending 00:09:27.830 --> 00:09:31.009 $500 to $1 ,500 per stall just to stay afloat. 00:09:31.110 --> 00:09:32.769 And that's before you even factor in the labor. 00:09:32.929 --> 00:09:35.250 Milking cows is a seven -day -a -week job. No 00:09:35.250 --> 00:09:37.710 days off. And for a 50 -cow herd, you're looking 00:09:37.710 --> 00:09:40.929 at 40 to 60 hours a week, maybe even more. And 00:09:40.929 --> 00:09:43.129 while the milk checks are coming in, the margins 00:09:43.129 --> 00:09:45.509 aren't always what you'd hope for. It's tough 00:09:45.509 --> 00:09:47.710 out there for dairy farmers. No doubt about it. 00:09:48.009 --> 00:09:49.409 So let's look at the other side of the coin, 00:09:49.570 --> 00:09:52.690 beef on dairy. If you're smart about it and use 00:09:52.690 --> 00:09:55.029 your existing facilities, conversion costs can 00:09:55.029 --> 00:09:58.090 be really minimal. We're talking maybe $100 to 00:09:58.090 --> 00:10:00.750 $300 per head capacity. That's a big difference 00:10:00.750 --> 00:10:04.190 right here. Huge. And labor. Forget... 40 to 00:10:04.190 --> 00:10:06.570 60 hours a week, you might be looking at 10 to 00:10:06.570 --> 00:10:09.049 15 hours for a similar number of animals. Sounds 00:10:09.049 --> 00:10:11.529 like a dream come true. Right. Now, granted, 00:10:11.590 --> 00:10:13.470 the return on your investment is a little longer. 00:10:13.629 --> 00:10:16.409 It'll take 12 to 18 months to get finished cattle 00:10:16.409 --> 00:10:18.409 ready for market. That's something to consider 00:10:18.409 --> 00:10:20.710 for sure. You need to have a plan for that transition 00:10:20.710 --> 00:10:23.129 period. Absolutely. Good cash flow management 00:10:23.129 --> 00:10:26.190 is key. But here's the real kicker, the profit 00:10:26.190 --> 00:10:28.860 potential. In dairy, you're looking at maybe 00:10:28.860 --> 00:10:32.440 $1 .50 to $2 .50 per hundredweight of milk in 00:10:32.440 --> 00:10:35.000 today's world. But with beef on dairy, especially 00:10:35.000 --> 00:10:37.320 if you're direct marketing, we're talking $300 00:10:37.320 --> 00:10:41.200 to $600 per head, possibly even more. Now that's 00:10:41.200 --> 00:10:43.100 what I'm talking about. Those are some serious 00:10:43.100 --> 00:10:46.059 margins. It's a whole different ballgame. And 00:10:46.059 --> 00:10:49.100 it's not just anecdotal either. Cornell Pro Dairy, 00:10:49.200 --> 00:10:51.039 they've been looking into this and they're saying 00:10:51.039 --> 00:10:53.500 that converting those existing dairy facilities 00:10:53.500 --> 00:10:56.559 for beef often doesn't require a ton of money. 00:10:56.659 --> 00:10:58.159 So you're really working with what you've got. 00:10:58.200 --> 00:11:00.679 Smart. And they're also saying that the labor 00:11:00.679 --> 00:11:02.840 reduction is a big draw for a lot of farmers. 00:11:03.200 --> 00:11:05.799 Less stress, more time with the family, maybe 00:11:05.799 --> 00:11:08.039 even a chance to get off the farm and do something 00:11:08.039 --> 00:11:10.220 else for a change. A little more work -life balance. 00:11:10.360 --> 00:11:12.840 Who wouldn't want that? Exactly. The University 00:11:12.840 --> 00:11:15.059 of Wisconsin Center for Dairy Profitability, 00:11:15.259 --> 00:11:17.120 they found similar things. They're talking about 00:11:17.120 --> 00:11:20.200 less stress, more flexibility in your schedule, 00:11:20.320 --> 00:11:23.539 and potentially even higher returns on your assets 00:11:23.539 --> 00:11:26.299 if you're doing smaller scale direct marketing 00:11:26.299 --> 00:11:28.440 with beef. It's definitely worth considering. 00:11:28.600 --> 00:11:30.279 It sounds like this could be a real win -win 00:11:30.279 --> 00:11:33.389 for a lot of farmers. It could be. Okay, so it's 00:11:33.389 --> 00:11:35.669 not just farmers and researchers who are seeing 00:11:35.669 --> 00:11:37.990 this trend. Let's talk about the boots on the 00:11:37.990 --> 00:11:40.850 ground folks, the extension specialists. Ryan 00:11:40.850 --> 00:11:44.490 Sterry, he's with UW Extension, and he's noticed 00:11:44.490 --> 00:11:47.210 way more interest in his beef production workshops, 00:11:47.529 --> 00:11:49.830 especially in areas that have always been dairy 00:11:49.830 --> 00:11:52.190 focused. People are really starting to pay attention. 00:11:52.389 --> 00:11:54.509 They are. And then you've got Scott Ellevold. 00:11:54.590 --> 00:11:57.049 He's with North Star Select Sires, and he's a 00:11:57.049 --> 00:11:59.529 beef producer himself. Okay, so he's got skin 00:11:59.529 --> 00:12:02.730 in the game. Interesting. He's seeing a lot of 00:12:02.730 --> 00:12:05.190 dairy farmers who are either going all in on 00:12:05.190 --> 00:12:08.169 beef or taking a more strategic approach, breeding 00:12:08.169 --> 00:12:10.990 their best cows with sexed semen for replacements, 00:12:11.149 --> 00:12:14.090 but then breeding their lower end cows to beef 00:12:14.090 --> 00:12:17.049 bulls for those crossbred calves. Smart move. 00:12:17.210 --> 00:12:18.789 You're getting the best of both worlds that way. 00:12:18.889 --> 00:12:20.929 Absolutely. And Elivald's another one who's big 00:12:20.929 --> 00:12:23.289 on genomic testing. He says it helps farmers 00:12:23.289 --> 00:12:25.370 figure out which heifers have the best genetics 00:12:25.370 --> 00:12:28.250 early on. Makes those breeding decisions a lot 00:12:28.250 --> 00:12:30.519 easier and more efficient. You know what you're 00:12:30.519 --> 00:12:34.440 working with right from the start. Okay, let's 00:12:34.440 --> 00:12:36.580 talk about a really important part of making 00:12:36.580 --> 00:12:39.639 this beef on dairy thing work. Cutting out the 00:12:39.639 --> 00:12:42.139 middleman. Direct marketing. That's where the 00:12:42.139 --> 00:12:44.919 real money is, right? It can be. Instead of selling 00:12:44.919 --> 00:12:47.179 your beef into the commodity market, you're selling 00:12:47.179 --> 00:12:49.899 direct to consumers. So you set your own prices, 00:12:49.960 --> 00:12:51.860 you build relationships with your customers. 00:12:52.159 --> 00:12:55.039 Exactly. And a lot of these former daily farmers, 00:12:55.220 --> 00:12:58.399 especially those closer to cities, They're finding 00:12:58.399 --> 00:13:01.419 that they can sell whole or half animals directly 00:13:01.419 --> 00:13:04.139 to consumers at a much higher price than they'd 00:13:04.139 --> 00:13:05.879 get through traditional channels. So they're 00:13:05.879 --> 00:13:07.879 not just competing on price anymore. They're 00:13:07.879 --> 00:13:10.019 selling quality. They're selling the story of 00:13:10.019 --> 00:13:11.980 their farm, the connection to the land. It's 00:13:11.980 --> 00:13:13.519 a whole different way of doing business. And 00:13:13.519 --> 00:13:15.500 what's really cool is that family farmers are 00:13:15.500 --> 00:13:17.740 realizing they can actually make more money with 00:13:17.740 --> 00:13:20.279 fewer animals this way. It's not about quantity. 00:13:20.500 --> 00:13:23.360 It's about quality and connection. It's about 00:13:23.360 --> 00:13:26.059 bringing back the idea of the local butcher, 00:13:26.220 --> 00:13:28.919 the farmer's market. Exactly. But here's the 00:13:28.919 --> 00:13:32.220 thing. Location, location, location. It plays 00:13:32.220 --> 00:13:34.980 a huge role in how successful you can be with 00:13:34.980 --> 00:13:37.019 this model. Makes sense. You need to be where 00:13:37.019 --> 00:13:39.220 the customers are and you need to have the infrastructure 00:13:39.220 --> 00:13:41.659 to support it. Right. The Northeast and the Mid 00:13:41.659 --> 00:13:43.470 -Atlantic. They're in a sweet spot right now. 00:13:43.590 --> 00:13:45.730 They've got the highest concentration of those 00:13:45.730 --> 00:13:49.590 smaller USDA inspected processors, which are 00:13:49.590 --> 00:13:53.110 a must for direct consumer sales. Plus, they're 00:13:53.110 --> 00:13:55.070 near big cities with people who have money to 00:13:55.070 --> 00:13:57.750 spend and a growing interest in local food. So 00:13:57.750 --> 00:13:59.509 they're in a prime position to make this work. 00:13:59.629 --> 00:14:03.129 Absolutely. The upper Midwest, Wisconsin, Minnesota, 00:14:03.529 --> 00:14:07.090 Michigan, they've also got some advantages. strong 00:14:07.090 --> 00:14:09.309 processing infrastructure, and tons of experience 00:14:09.309 --> 00:14:11.690 in dairy farming. They've got the facilities 00:14:11.690 --> 00:14:13.909 and the know -how. That history of agriculture 00:14:13.909 --> 00:14:16.549 really gives them a leg up. It does. The West 00:14:16.549 --> 00:14:18.350 and the Plains states, they face some bigger 00:14:18.350 --> 00:14:20.669 challenges with processing, not as many smaller 00:14:20.669 --> 00:14:23.350 USDA -inspected facilities out there. So it's 00:14:23.350 --> 00:14:25.570 important to do your research, see what's available 00:14:25.570 --> 00:14:28.539 in your area before jumping in headfirst. Absolutely. 00:14:28.720 --> 00:14:32.100 And down south, the premiums for direct marketed 00:14:32.100 --> 00:14:34.700 beef tend to be lower, although there are pockets 00:14:34.700 --> 00:14:36.460 where it's taking off, especially in the bigger 00:14:36.460 --> 00:14:39.320 cities. It's a mixed bag. So know your market. 00:14:39.539 --> 00:14:42.720 That's the key takeaway. 100%. But even with 00:14:42.720 --> 00:14:44.519 all that said, there's something else that's 00:14:44.519 --> 00:14:46.419 pretty exciting about beef on dairy. Something 00:14:46.419 --> 00:14:49.120 that the big beef guys might have a tough time 00:14:49.120 --> 00:14:52.740 replicating. The quality of the meat. Oh, interesting. 00:14:53.019 --> 00:14:55.509 Tell me more. Well, Texas Tech University has 00:14:55.509 --> 00:14:56.990 been doing research and they're finding that 00:14:56.990 --> 00:14:59.230 these hybrid cattle can actually produce more 00:14:59.230 --> 00:15:01.629 beef and better beef. And without hurting milk 00:15:01.629 --> 00:15:04.370 production. That's right. And Lisa Pedersen, 00:15:04.409 --> 00:15:07.009 who's a beef quality assurance specialist up 00:15:07.009 --> 00:15:09.690 at North Dakota State University, she says that 00:15:09.690 --> 00:15:12.169 dairy steers are known for producing some of 00:15:12.169 --> 00:15:15.049 the highest quality grades of beef, like prime 00:15:15.049 --> 00:15:17.750 and high choice. So we're talking premium cuts 00:15:17.750 --> 00:15:20.009 here, the kind of stuff that steak lovers drool 00:15:20.009 --> 00:15:22.950 over. Exactly. That gives former dairy farmers 00:15:22.950 --> 00:15:25.529 a real edge in those high -end direct markets. 00:15:25.649 --> 00:15:27.769 They can compete on quality, not just price. 00:15:27.909 --> 00:15:32.210 It is. And the really cool thing is, these crossbreds 00:15:32.210 --> 00:15:35.110 seem to inherit that marbling trait from their 00:15:35.110 --> 00:15:37.909 Holstein side, which is what gives the beef that 00:15:37.909 --> 00:15:40.830 tenderness and flavor. But they also finish faster 00:15:40.830 --> 00:15:43.529 than purebred dairy steers. So it's a win -win 00:15:43.529 --> 00:15:46.490 for both the farmer and the consumer. More efficient 00:15:46.490 --> 00:15:48.980 production, better tasting beef. It's a good 00:15:48.980 --> 00:15:51.059 combo. So when you look at the economics of it 00:15:51.059 --> 00:15:53.639 all, it's like a classic David versus Goliath 00:15:53.639 --> 00:15:57.919 story. Small, nimble, beef on dairy producers 00:15:57.919 --> 00:16:01.679 going up against the massive commodity beef operations. 00:16:02.139 --> 00:16:04.639 And who's winning? Well, that's the exciting 00:16:04.639 --> 00:16:06.759 part. The little guys might actually have an 00:16:06.759 --> 00:16:08.820 advantage here. They're not bound by the same 00:16:08.820 --> 00:16:11.340 rules. They don't need to produce massive volumes 00:16:11.340 --> 00:16:13.000 to make a profit. They're playing a different 00:16:13.000 --> 00:16:15.200 game altogether. Exactly. And it seems like the 00:16:15.200 --> 00:16:17.460 big guys are starting to notice. Cargill, for 00:16:17.460 --> 00:16:19.559 example, they've launched a three -year program 00:16:19.559 --> 00:16:22.120 called the Dairy Beef Accelerator to study this 00:16:22.120 --> 00:16:23.779 whole beef on dairy thing. They're partnering 00:16:23.779 --> 00:16:25.759 with Nestle on it. So they're finally waking 00:16:25.759 --> 00:16:29.960 up and smelling the steaks, I guess. Yeah, I 00:16:29.960 --> 00:16:32.419 guess you could say that. And their research 00:16:32.419 --> 00:16:34.740 is backing up what a lot of smaller producers 00:16:34.740 --> 00:16:37.559 already know. They're finding that these crossbred 00:16:37.559 --> 00:16:40.419 calves are efficient and they produce great beef. 00:16:40.799 --> 00:16:44.059 And get this, Cargill is even talking about sustainability 00:16:44.059 --> 00:16:47.559 as a key driver behind their program. So they're 00:16:47.559 --> 00:16:50.200 realizing this isn't just a niche thing. It could 00:16:50.200 --> 00:16:52.679 be a real game changer for the whole industry. 00:16:52.940 --> 00:16:54.960 And that raises an interesting question for all 00:16:54.960 --> 00:16:57.840 the smaller producers out there. Can you establish 00:16:57.840 --> 00:17:01.080 yourself and build a loyal customer base before 00:17:01.080 --> 00:17:03.620 the big guys figure out how to scale this up 00:17:03.620 --> 00:17:05.930 and potentially commoditize it? That's the real 00:17:05.930 --> 00:17:08.130 challenge. It's a race against time. It is. It's 00:17:08.130 --> 00:17:11.089 funny, isn't it? For years, the message was get 00:17:11.089 --> 00:17:13.910 big or get out. Now it's the smaller farms who 00:17:13.910 --> 00:17:16.069 are finding these innovative solutions and the 00:17:16.069 --> 00:17:18.589 big guys are playing catch up. It just goes to 00:17:18.589 --> 00:17:20.309 show you, you don't always need to be the biggest 00:17:20.309 --> 00:17:22.549 to be the best. Sometimes it's about being adaptable, 00:17:22.609 --> 00:17:24.910 being creative and finding those niche opportunities. 00:17:25.329 --> 00:17:28.049 Absolutely. OK, let's be real, though. It's not 00:17:28.049 --> 00:17:30.289 all smooth sailing with this beef on dairy thing. 00:17:30.450 --> 00:17:32.630 There are some real challenges that farmers need 00:17:32.630 --> 00:17:34.769 to be aware of. Challenges are part of farming. 00:17:35.230 --> 00:17:36.990 It wouldn't be farming without them. Ain't that 00:17:36.990 --> 00:17:39.369 the truth. So first off, there's the processing 00:17:39.369 --> 00:17:42.410 bottleneck. It can be a real pain finding USDA 00:17:42.410 --> 00:17:45.170 -inspected facilities, especially smaller ones 00:17:45.170 --> 00:17:46.990 that can handle direct -to -consumer orders. 00:17:47.410 --> 00:17:50.029 And with all the consolidation in the meatpacking 00:17:50.029 --> 00:17:52.779 industry, it's not getting any easier. So you 00:17:52.779 --> 00:17:55.039 might have to get creative, build relationships 00:17:55.039 --> 00:17:57.640 with smaller processors, maybe even look into 00:17:57.640 --> 00:17:59.940 mobile processing units in some areas. Yeah, 00:17:59.940 --> 00:18:02.180 you got to hustle. And then there's the issue 00:18:02.180 --> 00:18:05.380 of residues. Lisa Pedersen from NDSU, she points 00:18:05.380 --> 00:18:07.720 out that dairy cows have a much higher rate of 00:18:07.720 --> 00:18:11.000 residue violations than beef cows. So if you're 00:18:11.000 --> 00:18:12.960 making the switch, you need to be extra careful 00:18:12.960 --> 00:18:15.660 about withdrawal times for any medications and 00:18:15.660 --> 00:18:18.140 keep meticulous records. No room for error there. 00:18:18.279 --> 00:18:20.500 Not at all. Then there's the worry about market 00:18:20.500 --> 00:18:23.880 saturation. If too many farmers jump on the beef 00:18:23.880 --> 00:18:26.440 on dairy bandwagon, the prices could start to 00:18:26.440 --> 00:18:28.559 drop. So you need to think about how to make 00:18:28.559 --> 00:18:30.779 your beef stand out, how to create a brand, a 00:18:30.779 --> 00:18:33.279 story that resonates with consumers. It's not 00:18:33.279 --> 00:18:35.759 just about selling beef. It's about selling an 00:18:35.759 --> 00:18:38.460 experience, a connection to the farm. Right. 00:18:38.559 --> 00:18:41.119 And don't forget, consumer tastes can change. 00:18:41.500 --> 00:18:43.880 People might be willing to pay a premium for 00:18:43.880 --> 00:18:47.299 local beef today, but will they tomorrow? So 00:18:47.299 --> 00:18:49.849 you have to be adaptable. build those relationships, 00:18:49.970 --> 00:18:53.089 and always be thinking about how to provide value. 00:18:53.349 --> 00:18:55.289 You have to be more than just a farmer. You have 00:18:55.289 --> 00:18:58.849 to be a marketer, a salesperson, a customer service 00:18:58.849 --> 00:19:02.269 expert, all rolled into one. And lastly, let's 00:19:02.269 --> 00:19:04.650 not forget about the money. Transitioning to 00:19:04.650 --> 00:19:07.190 beef on dairy can require some upfront investment, 00:19:07.349 --> 00:19:09.890 even if it's minimal. So you need to plan carefully 00:19:09.890 --> 00:19:12.069 and think about your cash flow. Make sure you 00:19:12.069 --> 00:19:14.670 can weather that initial period before the beef 00:19:14.670 --> 00:19:16.809 checks start rolling in. Now, despite all those 00:19:16.809 --> 00:19:18.630 challenges, there's something really positive 00:19:18.630 --> 00:19:21.069 about this beef on dairy model, the sustainability 00:19:21.069 --> 00:19:23.349 aspect. Yeah, people are really starting to pay 00:19:23.349 --> 00:19:24.970 attention to where their food comes from and 00:19:24.970 --> 00:19:27.049 how it's produced. And this model seems to hit 00:19:27.049 --> 00:19:29.069 the sweet spot. It's good for the farmer. It's 00:19:29.069 --> 00:19:31.210 good for the environment. A real win -win. A 00:19:31.210 --> 00:19:34.269 2024 study that was published in Semantic Scholar, 00:19:34.329 --> 00:19:37.170 it basically said that we've got the technology 00:19:37.170 --> 00:19:40.880 to change how we produce animal protein. The 00:19:40.880 --> 00:19:44.599 trick is finding systems that are both good for 00:19:44.599 --> 00:19:47.160 the bottom line and good for the planet. And 00:19:47.160 --> 00:19:49.900 beef on dairy, it seems to fit the bill. So it's 00:19:49.900 --> 00:19:52.000 not just about economics. It's about doing things 00:19:52.000 --> 00:19:54.299 the right way. Right. And that's a powerful message 00:19:54.299 --> 00:19:55.759 that you can share with your customers. They 00:19:55.759 --> 00:19:57.819 want to know that their food is coming from a 00:19:57.819 --> 00:19:59.859 good place. It's about transparency. It's about 00:19:59.859 --> 00:20:02.559 values. So what's the takeaway for dairy farmers? 00:20:02.759 --> 00:20:06.380 This beef on dairy revolution is happening. Are 00:20:06.380 --> 00:20:08.309 you going to be a part of it? The train's leaving 00:20:08.309 --> 00:20:10.910 the station. Are you going to get on board? I 00:20:10.910 --> 00:20:12.650 like that. And look, I'm not saying everyone 00:20:12.650 --> 00:20:15.130 needs to switch to beef on dairy tomorrow, but 00:20:15.130 --> 00:20:17.490 it's worth exploring, doing your research and 00:20:17.490 --> 00:20:19.210 seeing if it's the right fit for you, because 00:20:19.210 --> 00:20:21.630 that window of opportunity, it might not be open 00:20:21.630 --> 00:20:24.390 forever. So if you're intrigued, what can you 00:20:24.390 --> 00:20:27.630 do? Where can you start? Great question. First 00:20:27.630 --> 00:20:30.269 things first, talk to your local extension office. 00:20:30.809 --> 00:20:33.390 They're a gold mine of information, and they 00:20:33.390 --> 00:20:36.170 often have workshops specifically for dairy farmers 00:20:36.170 --> 00:20:39.329 who are interested in beef production. Second, 00:20:39.549 --> 00:20:42.650 find out what your processing options are. Locate 00:20:42.650 --> 00:20:45.529 those USDA -inspected facilities in your area 00:20:45.529 --> 00:20:47.950 and figure out what their schedules and capabilities 00:20:47.950 --> 00:20:50.630 are. Get your ducks in a row. Start building 00:20:50.630 --> 00:20:53.599 those relationships early. Absolutely. Third, 00:20:53.799 --> 00:20:55.599 if you're thinking about a gradual transition, 00:20:56.079 --> 00:20:59.440 look into genomic testing. It can help you identify 00:20:59.440 --> 00:21:02.339 which cows to breed for beef and which to keep 00:21:02.339 --> 00:21:04.779 for dairy. Work smarter, not harder. Exactly. 00:21:05.339 --> 00:21:07.579 Fourth, start connecting with direct marketing 00:21:07.579 --> 00:21:10.019 networks in your area. Find those farmers markets, 00:21:10.180 --> 00:21:12.180 those co -ops, those restaurants that are looking 00:21:12.180 --> 00:21:14.500 for local beef. And lastly, check out potential 00:21:14.500 --> 00:21:17.359 funding opportunities like the USDA Value -Added 00:21:17.359 --> 00:21:19.359 Producer Grants. They can help you get started. 00:21:19.640 --> 00:21:21.200 It sounds like there's a lot of support out there 00:21:21.200 --> 00:21:22.700 for farmers who want to make this transition. 00:21:23.079 --> 00:21:25.259 There really is. Now, before you jump in with 00:21:25.259 --> 00:21:27.059 both feet, there are some tough questions you 00:21:27.059 --> 00:21:29.920 need to ask yourself. First off, can you realistically 00:21:29.920 --> 00:21:32.960 access processing facilities? And is there enough 00:21:32.960 --> 00:21:35.900 demand for direct marketed beef in your area? 00:21:36.220 --> 00:21:39.039 Can your existing facilities be adapted for beef 00:21:39.039 --> 00:21:41.880 production without breaking the bank? Practical 00:21:41.880 --> 00:21:44.500 considerations. Exactly. And here's the big one. 00:21:44.960 --> 00:21:47.640 Can you handle the longer production cycle of 00:21:47.640 --> 00:21:50.759 beef? Do you have a good cash flow plan? And 00:21:50.759 --> 00:21:52.970 are you ready to become a marketer? Because this 00:21:52.970 --> 00:21:54.910 isn't just about raising animals anymore. It's 00:21:54.910 --> 00:21:56.910 about building a brand, connecting with customers, 00:21:57.049 --> 00:21:59.390 telling your story. It's a whole new way of thinking 00:21:59.390 --> 00:22:01.589 about farming. But here's the really exciting 00:22:01.589 --> 00:22:03.769 thing about this whole beef on dairy movement. 00:22:04.369 --> 00:22:07.329 It's a chance for small and medium -sized family 00:22:07.329 --> 00:22:10.509 farms to thrive. While the big corporations were 00:22:10.509 --> 00:22:13.150 busy getting bigger, these farmers found a different 00:22:13.150 --> 00:22:15.990 way forward, a more sustainable way. They're 00:22:15.990 --> 00:22:18.069 proving that you don't need to be a giant to 00:22:18.069 --> 00:22:21.099 succeed. You just need to be smart. be adaptable, 00:22:21.119 --> 00:22:23.779 and be willing to try something new. And ultimately, 00:22:23.920 --> 00:22:25.940 that's what it's all about. So as you're out 00:22:25.940 --> 00:22:28.279 there in your barn tonight, take a look around 00:22:28.279 --> 00:22:31.279 and ask yourself, could this be the future of 00:22:31.279 --> 00:22:33.900 my farm? Could this be the way I keep my family 00:22:33.900 --> 00:22:37.160 farm alive for generations to come? The future 00:22:37.160 --> 00:22:39.640 of farming might not be what we always thought 00:22:39.640 --> 00:22:41.500 it would be. It might be something different, 00:22:41.539 --> 00:22:44.039 something better. It just might be. So what's 00:22:44.039 --> 00:22:46.680 one small step you can take this week to explore 00:22:46.680 --> 00:22:49.799 this new path? Think about it. If this beef on 00:22:49.799 --> 00:22:52.380 dairy rebellion lit a fire under your overalls, 00:22:52.400 --> 00:22:56.039 hit subscribe, rate us, review us, and tell every 00:22:56.039 --> 00:22:58.839 dairy rebel you know. Got a topic that'll make 00:22:58.839 --> 00:23:01.660 the industry squirm? Slide into our DMs at The 00:23:01.660 --> 00:23:04.740 Bullvine. Until next time, stay loud, stay proud, 00:23:04.880 --> 00:23:07.299 and never let them say get big or get out without 00:23:07.299 --> 00:23:07.660 a fight.