Author: Tom Brown, CentralStar Genetic and Reproductive Consultant
Dairy producers often ask if their farms can maintain reproductive success while using a sexed- and beef-semen strategy. Given the current beef-on-dairy calf prices, this question has become a hot topic. As a Reproductive Consultant, I aim to balance the number of dairy replacements while trying to maximize producer profits. When I’m asked this question, my short answer varies between “yes” or “not quite yet,” as it is a delicate balance to achieving good reproduction rates while increasing revenue through the beef-on-dairy market. I firmly believe it requires a very good reproduction protocol along with an A.I. Specialist or in-house breeder that has exceptional communication.
Given the frequent inquiries I’ve received, let’s explore a recent request for a sexed- and beef-semen strategy. After in-depth discussions with CentralStar team members and a fresh backup of herd data, I used the Genetic-Strategy Calculator to create an all-sexed NxGEN® and beef-semen strategy for the producer. I considered the total cost of semen and arm service over the past 12 months, along with the total number of sexed, conventional, and beef units used during the same time. Comparing the past yearly total with the proposed strategy, I first found an increase of $3,000 in semen and reproduction costs.
Armed with this information, I met with the producer so we could discuss the strategy in detail. Using the data, he calculated the potential revenue from the proposed strategy using four different price scenarios: his highest recent calf price, the lowest price he has received, and two intermediate prices. At each price point, the return on investment would be achieved if beef calves consistently fetched $35 more than Holstein bull calves. That’s something I would bet on any day! With a potential increase of $50,000 in revenue, despite the $3,000 rise in reproduction costs, the opportunity was compelling.
Seeing an opportunity to be more profitable, he asked: “Tom, should I do this?” I reminded him that successful implementation would require regular tracking using his dairy-management data. I also suggested waiting until fall, after the heat-stress period, to start the strategy. He agreed to the implementation strategy, and no matter the outcome, it was a road worth pursuing.
Beyond price and color
Beef sire selection for your dairy herd is just as important as the attention you put into selecting dairy sires for your next generation. Just like you wouldn’t use a high-type specialty sire if your goal is milk production; you shouldn’t use “something cheap and black” for beef-on-dairy matings.
For the farm above, we prioritized calving ease and fertility when selecting beef sires for use on heifers. Other farms I work with look at additional traits like Rib Eye Area (REA), and others rely on ProfitSOURCE® sires as they are designed to meet fertility and calving-ease expectations, as well as offering different profiles for growth and carcass traits desired by beef supply chain partners.
Wherever and however you market beef-on-dairy cattle, selecting superior genetics using traits that align with the preferences of your buyers is critical. Using this approach lets you meet market demand and enhances the overall value and profitability of these animals. If you aren’t familiar with the ProfitSOURCE® program or sires, talk with your CentralStar team to make more informed decisions.