What started as a niche market opportunity, beef-on-dairy, is now a mainstream practice, not only in the U.S. but across the world.
A RaboResearch report analyzed how beef-on-dairy is a strategic opportunity to enhance value, reduce waste and reshape global beef supply chains.
While cull dairy cows and dairy-origin calves have long been part of global beef supply chains, dairy producers in the U.S., Ireland, New Zealand and Australia are increasingly integrating beef genetics into dairy herds to improve non-milk revenue, increase the value of calves born on the dairy, reduce surplus heifers, lower the emissions footprint of finished cattle and enhance supply chain coordination.
The number of dairy-beef cattle in the U.S. has risen by more than 30% since 2020 to approximately 4.4 million head. Drought and feed costs led to a contraction of the U.S. beef herd, which lifted the value of week-old beef-on-dairy calves from $800 in 2023 and 2024 to over $1,000 in 2025. RaboResearch estimates livestock income could come close to 10% of total farm revenue for dairies this year, up from less than 2% a few years ago.
With the smaller U.S. beef herd, the increase in beef-on-dairy is being absorbed domestically.
In Ireland, the removal of the European Union (EU) milk production quota has led to a significant increase in the national dairy herd. The number of dairy cows increased 47% from 2010 to 2024, adding nearly half a million head.
Dairy farmers in Ireland have also bred dairy cows to beef over the last couple of years and markets them domestically and into the EU.
The adoption of beef-on-dairy is being supported by investments in research, education and extension services, along with support in policy and funding to see how beef-on-dairy aligns with Ireland’s climate and emissions goals. Producers receive additional payments for welfare and weight data, and a national traceability and genotyping program will aid in strategic development.
With its pasture-based, seasonal calving system, New Zealand has been slower to adopt beef-on-dairy. The country is heavily reliant on exporting beef, with the U.S. as the top export destination. It mainly ships lesser-value “grinding beef” or “lean trim.” Finding high-value export markets could help improve the marketing and demand for beef-on-dairy in New Zealand.
Australia’s cattle industry is heavily focused on beef. Around 90% of the national herd is made up of beef cattle. Therefore, even in the country’s dairy-heavy states, processors are looking for dairy-beef that resemble beef carcasses more than culled dairy cows.
Meanwhile, Australia’s dairy sector is facing limited herd expansion and is looking to sexed semen and beef genetics to reduce surplus dairy calf numbers.
An expanding feedlot sector presents a promising opportunity; however, the bigger bottleneck to overcome for Australian producers is limited infrastructure for raising beef calves, especially with the seasonal nature of calving in the dairy industry.
Beef-on-dairy is filling domestic demand in the U.S. and Ireland and has the potential to reshape beef supply chains in New Zealand and Australia. Tailored strategies and region-specific investment are imperative to full supply chain integration.
