Beef on Dairy: Maximize Revenue by Understanding the Beef Supply Chain 

Publish date: 9.20.24 

It is important to stay knowledgeable about the nuances of the beef supply chain as dairy producers become more involved in beef production. You may be fluent in all the terminology used in milk processing, but some beef-related terms may still be foreign. With this blog, we hope to increase your knowledge of what the beef supply chain needs and wants to help you maximize profits with your beef on dairy program.  

1. Genetics and Environment Impact Quality  

An animal’s genetics and its environment impact meat quality. You can have the best genetics in the industry, but if the environment in which that animal is raised is poor, then the animal will never express performance to its full potential. It is not an either-or situation; the same goes for great environments with poor genetics. Genetics and environment set the threshold for an animal’s performance. To succeed with beef on dairy, producers must use the best genetics and provide the best environment; that’s when you will see an animal reach its full potential performance.  

When it comes to the beef supply chain, start with the end in mind because genetics is the foundation of all things. For beef cross calves, that end is on a plate at a consumer’s table. Packers work with retailers and consumers to understand what they want and need regarding meat quality. This, typically, is things like flavor, tenderness, and fat content. This is why dairy producers must use genetics that are designed with those desires in mind when selecting the beef genetics to use.  

2. Know the Key Profit Drivers of the Beef Supply Chain 

This isn’t a new concept for dairy producers as you have operated in a commodity market for years when selling milk. Understanding the key profit-driving factors of different milk markets influences the genetic decisions you make and the products you produce. Maximizing key profit drivers with your genetics only leads to more profitability because the product you are creating is what is demanded by the chain. This is also how you need to think about your beef cross calves.  

Components, volume, and milk quality are just a few driving qualities for producing milk. The key profit drivers for the beef supply chain are feed efficiency, carcass traits, and growth traits. These drivers all positively impact profitability from post-weaning to finish and are what stakeholders within the beef supply chain care about. The beef genetics you select should be proven to perform well in those areas.  

3. Ways to Maximize Beef on Dairy Revenue 

Here is how the beef supply chain works. Cattle feeders expect fast-growing, healthy cattle that convert feed to pounds of carcass weight efficiently. Packers expect as much high-quality carcass weight as they can get for every hook space in their plants. Consumers expect an exceptional eating experience. Below are some thoughts to consider as you work to produce high-quality beef cross calves which are highly demanded and rewarded by the beef supply chain. 

  • Utilize beef genetics proven to perform well in the beef supply chain’s key profit drivers.  
  • Be cautious of single-trait selection and focus on supply chain profitability by using a properly designed beef on dairy index. 
  • Understand dairy cattle strengths and weaknesses as they relate to the beef supply chain.  
  • Create a focused breeding strategy that optimizes both milk and beef revenue streams.  
  • Accelerate genetic progress by genomic testing and using a custom index to identify the females who will create the next generation and the ones to breed to beef.  
  • Partner with a genetics company with a focused beef on dairy program rather than using just any ole beef bull.  

Making yourself aware of the differences and terminology used in the beef supply chain will help you create the high-quality beef cross calves that they are looking for. To learn more about maximizing profit by understanding the beef supply chain, read ourarticle originally published in Progressive Dairy.    

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