Dynamics in beef on dairy
In the past, many dairy and beef producers had nothing nice to say about dairy progeny, which were usually purebred Holsteins, entering the beef supply chain.
Dr. Tara Felix, associate professor and beef Extension specialist at Penn State, said that thinking has changed.
“That’s a significant portion of portion of beef for the United States,” Felix said, referring to dairy x beef animals. “However, in 2017, there was a stark downturn in the Holstein market. In 2022, when the National Beef Quality Audit (NBQA) came out, there was reduction in the number of Holstein calves that were part of the fed cattle system. The reality is there was an uptick in cattle with black hides and cattle that qualified as ‘other colored hides.’”
Felix said the NBQA isn’t necessarily a shift away from using dairy progeny but corresponds with the uptick in beef x dairy calves.
“In 2017, when Holstein bull calves were first devalued, we sold only 2.5 million units of domestic beef semen in the U.S,” Felix said. “By 2018, that number increased to 4 million units. In 2023, the U.S. sold 9.4 domestic units of beef semen. This means we are shifting the dynamics of the dairy industry.”
As domestic sales of beef semen were increasing, sales of dairy semen sales were decreasing. In 2023, this meant beef x dairy cattle entering the beef supply chain now represent close to 4.4 billion lbs. of beef.
“Beef demand over time hasn’t wavered,” Felix said. “We’re generating additional beef with each beef on dairy carcass we slaughter.”
She explained that companies are now marketing specific lines of beef bulls to be used in beef x dairy crosses.
“In the dairy cow, the environment, whether it’s uterine or vaginal, has selection pressure on semen,” Felix said. “By putting multiple bulls in one straw, we remove the variation that might exist in female fertility.”
This change in selection pressure has also led to additional adoption of genetics by companies, which has created more uniformity in beef x dairy crosses. This directly affects how these crosses will perform throughout all segments of the supply chain, from calves to the feedlot and ultimately to the packer. Another consideration is what cattle feeders are looking for in incoming animals, which is primarily improved feed efficiency.
After a four-year research project tracking a variety of beef breeds bred to Holsteins, Felix found that beef x Holstein steers produce quality carcasses but that’s not necessarily breed specific.
“Because of the emphasis we placed on selecting the individual sires, we saw less variation in these cattle than perhaps the industry saw early on when it was maybe cleaning out tanks with older semen,” Felix said. “I always tell dairy producers who are interested in raising beef on dairy animals to focus on the bull and not the breed.”
Regarding the profit potential with beef x dairy, Felix referenced a study that found the economic value of using beef semen in dairy herds depends on the market value of calves, the market price of semen, herd reproductive performance and semen combination strategies.
“The profit potential exists for the dairy,” Felix said. “The risks exist for the feedlot. If we purchase a calf at $1,000 at less than one week of age and by the time we get at least $500 of milk replacer and starter feeds to get it to weaning, we have a very expensive investment in a 250-pound calf that is still a very high-risk calf for the feedlot.”
There are risks with any birth; however, across all studies, dairy cows carrying beef calves were not negatively impacted in subsequent lactations.
Felix said dairy farmers are familiar with Predicted Transmitting Ability (PTA) for bull selection and comparing those figures to Expected Progeny Differences (EPDs) used in the beef industry.
“We have specifications we have to meet and the industry standard right now is a Choice carcass with a yield grade two or three,” Felix said. “Selecting bulls that add ribeye area to the small, angular ribeyes that the Holstein normally has and selecting bulls that are going to add marbling will add value.”
When beef x dairy was first used, a lot of the emphasis for dairy farmers was on calving ease. While there are EPDs for calving ease, Felix noted that a Holstein cow is capable having a 100-lb. calf every year and most beef bulls sire 60-lb. calves, so calving ease has not been criteria for bull selection.
One new research interest is the effects of using bull semen combinations.
“There are advantages to this,” Felix said. “Most genetics companies are using similar genetics within a straw, likely crossbred bulls. The advantage is if the cow’s uterine environment is more favorable toward one sire or another, we might get an uptick in fertility. This is brand new in the last couple of years and I think we will see a growth in this area.”
by Sally Colby
