Dairy-beef Production
Production of high-quality dairy-beef is relatively new to
the beef industry and depends almost entirely on Holstein
bull calves. Until recently, most Holstein calves were sold
for veal. However, the high-quality meat produced when
these animals are fed high-energy diets and slaughtered at a
young age (12 to 14 months) has become popular with
consumers.
Dairy-beef production lends itself well to small-scale and
part-time farming operations and also can be an auxillary
enterprise for larger operations. Existing facilities can be
used to feed and house the steers, and farm-grown feeds can
be used. In addition, this enterprise is easy to enter when
profit projections are favorable and to exit when unfavorable.
The main disadvantage of a dairy-beef enterprise is the
limited availability of calves. Dairy cow numbers in
Pennsylvania have been declining in recent years, so it is
important that producers secure a good source of calves.
Marketing
Producers should carefully research local markets and
develop marketing strategies before beginning a dairy-beef
operation. Although many large U.S. beef-packing companies
readily purchase finished dairy-type steers, this market
is not fully established. Therefore, these steers often command lower prices
as feeder cattle and finished cattle than traditional beef breeds. Over the past few years,
however, dairy-beef carcasses marketed from young animals
fed high-energy diets have been priced closer to their true
value. The price differential is due in part to the lower
dressing percentage (percentage of liveweight that is in the
carcass) and a higher percentage of bone in dairy-beef
carcasses compared to cattle raised in a traditional beef
breeding operation.
Purchasing Calves
Young dairy calves usually are sold through local auctions
at 2 to 5 days of age. Most dairy-beef or veal calf producers
rely on livestock brokers to assemble uniform groups of
calves for feeding. The producer should work closely with a
broker to obtain suitable calves.
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