By Cydney Stables and Daniel Munch
Beef-on-dairy breeding has become an increasingly important source of revenue for dairy farms. By using sexed semen to produce the dairy replacements they need and breeding other cows to beef genetics, dairy farmers can produce calves with greater market potential than traditional dairy calves. More than 72% of dairy farms now incorporate beef-on-dairy into their breeding programs and those crossbred animals account for more than 20% of cattle entering U.S. feedlots.
But producing a crossbred calf does not mean a farmer or rancher will make more money. The calf’s value depends on how well it performs for calf raisers, backgrounders, feedlots and, ultimately, beef processors. Growth rates, feed requirements, health outcomes and carcass characteristics all influence what downstream buyers are willing to pay, and therefore how much additional revenue beef-on-dairy can generate for the dairy farm.
New research using Kansas commercial feedlot data provides a clearer picture of how beef-on-dairy cattle perform relative to traditional beef cattle and how those outcomes change based on placement weight. The findings suggest beef-on-dairy cattle generally achieve stronger daily gains and lower mortality when entering feedlots at lighter weights, although their feed efficiency and growth advantage decline as placement weights increase. These results can help feedlot managers refine purchasing, placement and feeding decisions, while giving dairy farmers and calf raisers greater insight into the traits and management practices that support continued demand, and stronger market value, for beef-on-dairy calves.
Filling a Critical Supply Gap
With U.S. cattle inventory at its lowest level since 1951, beef-on-dairy cattle are becoming an increasingly important source of fed beef. USDA’s July 2026 cattle inventory report showed modest signs of stabilization, with total cattle inventory increasing for the first time since 2018. However, the beef cow herd declined to 28.5 million head, the lowest level recorded in a July inventory report, while lower calf inventories and feedlot placements point to continued constraints on feeder cattle supplies in the years ahead.
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