More available data is leading to greater insights on the impact of beef-on-dairy crossbred cattle on the beef supply chain. A CoBank Knowledge report released at the end of February analyzes data that, although limited in scope, suggests the growing number of beef-on-dairy animals is playing a part in higher cattle prices.
USDA began tracking “dairy/beef animals” sold at auction beginning March 2024. Although the data series is relatively new and not comprehensive since not all cattle move through livestock auctions, CoBank’s evaluation of the data from March 2024 through February 2025 shows new patterns. The report, Beef-on-Dairy Data Suggests Opportunity for Feedlots and Processors, reveals slaughter auction prices for beef-on-dairy cattle were slightly higher than beef cattle and significantly higher than dairy cattle.
“The data also showed that beef-on-dairy cattle maintained the largest proportion of their value from feeder price to slaughter cattle auction price on a per hundredweight basis,” said Abbi Prins, livestock analyst with CoBank. “That’s an important financial metric for feedlots. We’ll have to see if these patterns hold over time as additional data becomes available. But preliminarily, it reaffirms the value proposition beef-on-dairy brings to the wider beef sector.”
Dairy-beef feeder cattle auction prices averaged $216/cwt, between dairy at $208/cwt and beef animals at $253/cwt. For slaughter cattle, dairy-beef cattle were nearly equal in price to beef cattle at $175/cwt versus $176/cwt, while dairy cattle slaughter prices were $150/cwt.
Dairy feeder cattle averaged heavier weights due to bigger skeletal frames, averaging 670 pounds compared to beef cattle at 600 lbs. and dairy-beef at 630 lbs. Slaughter weights followed the same pattern, with dairy cattle averaging 1,475 lbs. compared to beef cattle at 1,351 lbs. and dairy-beef cattle at 1,416 lbs.
Beef feeder cattle were priced the highest on a per-head basis at $1,519 head, followed by dairy at $1,393 and dairy-beef at $1,358. However, the report noted, once those cattle were sold for slaughter, the rankings for price changed and widened. Dairy-beef sold at auction for the highest price of $2,485/head, $100 more than beef and $275 more than dairy.
Added value for feedlots, processors
Dairy-beef cattle maintained the largest proportion of their value from feeder to slaughter in the analysis. The crossbred cattle maintained 81.3% of their value compared to 72.1% for dairy cattle and 69.6% for beef cattle on a per hundredweight basis.
“For feedlots, owning cattle that sustain their price value from feeder to slaughter is important for business financial health,” CoBank said.
On the packer side, dairy-beef and beef slaughter cattle were nearly the same in price per hundredweight, but the report noted size and weight are not the only two value measurements. Dairy animals with pure Holstein or Jersey genetics have traditionally produced higher meat grades.
However, dairy cattle have also been known to have more liver abscesses, less desirable shapes and sizes of steak cuts and reduced yield from end cuts compared to beef cattle. Utilizing beef genetics with more desirable meat characteristics can enhance dairy’s contributions to beef production, the report said, which is now quantifiable through the USDA data.
Cattle producers have continued to deliver more high-quality beef while maintaining efficiency. Just a decade ago, the report noted, only 4.4% of beef graded Prime. In 2024, Prime grade beef totaled 9.6% of total production at 2.02 billion lbs. Choice beef has grown 20% and makes up more than three-quarters of the market share at 15.77 billion lbs. Lower grades like Select have been cut by 37% from 2014-2024 to total 3.17 billion lbs.
“While beef-on-dairy animals are not a new phenomenon, the ability to track their performance metrics will enhance efficiencies and profitability in the cattle sector,” the report finished. “Being able to track and categorize animals based on their genetic makeup within the three buckets of dairy, beef and beef-on-dairy will help market analysis to determine the makeup of the cattle supply and eventual beef available to consumers.”
With less than a year of data to evaluate, the initial assessment of beef-on-dairy cattle is they are bringing more value for all sectors of the supply chain, CoBank said. — Anna Miller, WLJ managing editor
