Not Done as a Day-Old—Leveraging Genetics to Create Long Term Profit

Beef on Dairy
8/19/2024

 By: Lauren Kimble, Manager of ProfitSOURCE® Supply Chains, Select Sires Inc.

 

Drought and input costs have left many native beef producers unable to maintain their operations, creating a shortage of beef calves. Dairy producers have been able to deliver crossbred cattle to the beef supply chain, while also benefiting from the high prices. In some areas, day-old beef on dairy calves are garnering more than $1,000. To maintain these favorable markets long term, dairy producers can apply the same discernment to breeding crossbreds as they do when selecting genetics to create dairy replacements. Beef breed association Expected Progeny Differences (EPDs) offer a solid starting point. With fertility and calving ease in mind, the ProfitSOURCE sire lineup has been hand-selected based on critical EPDs to create cattle desirable to the beef market. Even for producers selling day-old beef on dairy calves, selecting the right genetics builds valuable relationships that strengthen long term profit potential.

Dairy-centric traits

When running a tight reproductive ship, what’s important?
  • Confirmed pregnant
  • Trouble-free calving
  • Quickly return the dam to production

Fertility

Sire fertility is not easily collected in the beef production system and is not available in any beef breed association EPDs. Fortunately, ProfitSOURCE has it covered. ProfitSOURCE lineup sires quickly become fertility-verified thanks to an internal evaluation system based on real records from dairies. Still have fertility fears? Using ProfitSOURCE Packs, a heterospermic conventional mix of ProfitSOURCE-qualified sires, is a great risk management tool. The best strategy for beef on dairy programs is to use a combination of mixed-sire packs and individual sires to protect against the variation in conception.

Calving Ease

While days open can be costly, difficult calvings can be even more costly, from reduced milk production in the next lactation to potential loss of the calf or dam. Calving Ease EPDs are based on recorded calving ease scores and birth weights of a sire’s progeny when used on beef heifers. Calving ease for beef sires is expressed opposite of dairy. A high score means more calving difficulty in dairy and is therefore unfavorable. In beef, the score is expressed as percentage of unassisted births, meaning a high EPD results in an easier birth. The Birth Weight EPD, if available for the breed you have selected, may also be used with a lower weight tending to manifest as an easier calving, but note the Calving Ease EPD already includes Birth Weight in its formulation.

Growth

Many breeds offer traits that can be used as indicators of growth. In the Angus breed, Weaning Weight and Yearling Weight both predict differences in calf weight in pounds among a sires’ progeny, at 205 days and 365 days respectively. Higher values for each trait should translate to greater growth performance. Similarly, a higher Residual Average Daily Gain (RADG) value should translate to more efficient growth. RADG compares gain variation per the same amount of feed consumed – a starting point for efficiency. For a dairy producer raising their beef on dairy calves to a higher weight, selecting sires with higher EPD values for these production traits translates to more pounds at sale. Even if producers aren’t retaining their calves, producing consistent, growthy calves can keep them in good favor with their buyer, who likely appreciates the predictability of calves from certain sources. This practice will contribute to a longstanding market for the dairy producer, even if the market changes.

Terminal

Carcass, or terminal, traits may seem distant when looking at a newborn calf – but supply chains demand cattle that can produce a quality carcass. Many feedlots sell their fat cattle to packing plants on a pricing structure called a grid. Grid pricing rewards or discounts based on individual carcass quality and yield. So, knowing they are procuring cattle which have the genetic potential to meet their expectations is advantageous.

Carcass Weight (CW) predicts the difference in weight of the carcass in pounds, with a higher value being beneficial. On grids, premiums and discounts are paid or deducted per hundredweight of carcass. A heavier carcass that attains a quality grade of Prime will make more than a lighter counterpart that also hits Prime.

The highly heritable trait of Marbling is directly linked to a carcass’ USDA Quality Grade (QG). Prime is the highest grade, with only the most highly marbled carcasses attaining this mark. Currently, many grids are heavily rewarding QG, with some featuring a premium of up to $25 or more per cwt – meaning a 900 lb. carcass would make an additional $225 for grading Prime!

Ribeye Area (RE or REA) indicates difference in the ribeye in square inches, with a larger ribeye sometimes indicative of more muscling – too large, though, can prevent a carcass from acceptance to certain branded programs.

Some breeds also offer a Terminal Index, which can be used to select for carcass traits as a whole. ProfitSOURCE has been designed to meet the ultimate supply chain need for quality, meaning terminal traits are a hallmark of our lineup. Among publicly available beef on dairy lineups, ProfitSOURCE has the highest proportion of Angus sires ranking in the top 20% of the breed for the terminal index of $B, and its components!

Determining What Traits Are Best For Your Strategy

There are a lot of beef traits available for selection. How do we know which matters most? It comes down to knowing your buyer and communicating the value of your crosses’ genetics.

While beef on dairy cattle have been critical to the beef supply, talk among feeders is that when the native population rebounds, they will become far choosier about the beef on dairy calves they procure. Feeders want to develop relationships that allow them to acquire the best, most consistent, most predictable crossbreds. For this reason, tag-based programs like ProfitSOURCE are in demand by growers and feeders because they deliver!

The visual tag has become a signal in their procurement process, and tailored sub-lineups of ProfitSOURCE like the TD Beef and Power Genetics programs, have already been defined to meet their needs. Not marketing through a formal program but want to work more closely with your existing buyer? Let’s run through a few scenarios to see where certain traits could be prioritized.

Scenario 1

This dairy uses beef sires on mature cows and some younger females, which tend to have a harder time calving. They want a guaranteed market and do not want the risk of raising calves to a higher weight, so they sell through the regional TD Beef supply chain program that buys day-olds and values Quality Grade at the end of the line. The producer may choose to focus on Calving Ease, as well as terminal traits including Marbling to impart high quality.

Scenario 2

Envision a small dairy that is not serviced by a program pickup route but finds value in marketing elite beef on dairy through a local sale barn. They like to use elite genetics and corresponding visual tags to indicate value. In this case, it is nearly impossible to know where the calves may end up, therefore making trait selection specific to a certain downstream buyer difficult. This producer can focus on fertility. They may also avoid calves that are too small with the Birth Weight EPD. Many sale barns highly differentiate calf prices by weight.

Scenario 3

This dairy raises their crossbred calves to 500 lbs. They then market directly to a feedlot whose grid favors heavier carcasses. The dairy producer can focus on growth traits such as Weaning Weight and RADG for efficiency in the feedlot and terminal traits like Carcass Weight that their partner feedlot prefers to optimize performance on their grid.

While factors like fertility and calving ease are directly felt by the dairy, it is beneficial to address the buyers’ needs too through genetic selection for growth and carcass. With ProfitSOURCE’s downstream-driven lineup, you can produce calves that meet the beef supply chain’s needs, thereby building valuable relationships and setting your beef on dairy program up for longer-term success.

Contact your Select Sires Representative for elite sires for your beef on dairy program.


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