The October 30, 2025, post to this blog covered “Beef on Dairy” growth. This post is six months later, updating “Beef on Dairy” growth. Data for this analysis is from many sources and some of the data conflicts, but regardless, there is significant growth in “Beef on Dairy.”
There are three drivers to this growth. One of the drivers is that dairy producers are desperate to find new sources of revenue. The prior post covered the current low producer prices for important milk components. The second driver is the high price of beef caused by a lack of good quality beef. The third driver is the need for producers to find a source of revenue not based on traditional pricing of milk components. Sometimes desperate situations can bring innovation.
In 2026, “Beef on Dairy” is being used in 72% of dairy farms. This post will cover how it is used and the financial benefits.
How it Works
Beef from the dairy industry makes up almost 20% of the total U.S. beef. Unfortunately, the value of this meat from Holstein cows is not high-quality beef, and it receives a low price. It is typically used in fast-food hamburgers or similar operations where the taste can be improved by adding other items like pickles, cheese, bacon, etc. By inseminating Holsteins with Angus semen, a higher quality of meat is produced. This increases the value of calves and culled cows.
The process can only be done on 30% to a max of 50% of the herd. Farms must have new replacements of pure Holstein calves. The process keeps the best-producing Holsteins to remain as Holsteins and pass on the high production to their calves. The rest of the herd can be crossed with Angus (or similar) semen. The calves will be of higher value. Holstein/Angus male calves and excess female calves receive a higher price primarily for veal. The “Beef on Dairy” cows raised for milk may produce slightly less milk than Holsteins.
Most of the revenue gained comes from the price difference in quality of the meat. Currently, good beef is in short supply and therefore the value of good Angus meat is high.
Some of the financial factors involved are listed below:
- The percent of the herd with “Beef on Dairy” has a significant impact. For a 1000 cow farm with 20% of the herd as “Beef on dairy”, the extra revenue is around $90,000 annually. If the herd is made up to 40% “beef on dairy” the extra revenue is around $300,000 annually. (It is difficult for small farms to implement “Beef on Dairy” and this may contribute to the decline in small farms.)
- The price of Angus semen is slightly lower than Holstein semen.
- The time to reach slaughter weight is 20% faster for “Beef on Dairy” cows than Holsteins. This saves feed costs and other associated feed expenses like labor. That saves almost $500 per head.
- The increase in calf value is more than $1000 per head with the current shortage of high-quality beef.
Over the last five years, “beef on Dairy” has grown from 18% of new dairy calves to 33% of new dairy calves. It is currently slowing down as Holsteins are needed for herd replacements.
