LUBBOCK, TX – Beef-on-dairy cattle may now represent roughly one-quarter of cattle on feed, helping offset some of the production pressure created by historically tight U.S. beef-cattle supplies.
CoBank livestock economist Abby Groves says beef-on-dairy animals previously accounted for about 15 to 20 percent of cattle on feed, but industry discussions now suggest the share is closer to 25 percent.
The economics have changed dramatically for dairy producers. Groves says beef-cross calves at a day to a week old are now commonly worth about $1,200 to $1,300 per head, compared with roughly $200 to $400 five to seven years ago.
Those cattle are also contributing meaningful beef tonnage as the traditional beef herd remains constrained. Heavier finished cattle have provided another important buffer by increasing pounds of beef produced per animal.
Groves says those factors have helped prevent beef production from falling as sharply as cattle numbers alone might suggest.
Farm-Level Takeaway: Beef-on-dairy cattle are becoming an increasingly important source of beef supply while adding substantial value to dairy calves.