Discover why fewer cows are being culled than expected. Explore the impact of beef-on-dairy trends and low replacements on culling rates. Dive in now.
You’ve most likely noticed it already – the number of cows is lower than the previous year. One of the main reasons behind this is that the dip in milk prices has led to a significant decline in cow numbers. Numerous farms have chosen to exit the dairy business, driven by both retirement and the reluctance of new family members to continue in the often-tough dairy industry.
What’s interesting is that cows raised in tie-stall barns often struggle to adapt to free-stall barns. This leads to a continuous shift of these cows between farms. As a result, the U.S. dairy herd totaled 9.334 million head in March, marking a decline of 98,000 head from March 2023.
Have you also noticed that cows are being held onto more willingly nowadays? This can be attributed to the growing costs of heifer replacements. Over the past few years, the bar has been raised, with many dairy farms maintaining high milk production, resulting in fewer cows ending up at the slaughter plant.
The March milk production report showed a decrease in cow numbers of 7,000 head after increasing by 9,000 head in February.
This fluctuation might very well be influenced by the growing beef-on-dairy trend. More dairy cattle are being bred with beef to increase the value of calves and generate additional farm income. This leaves fewer dairy cattle sent to the market.
Moreover, livestock slaughter reports revealed a significant decrease in dairy cattle slaughter in March, with only 244,600 heads slaughtered. That’s the lowest slaughter rate for March since 2009. Monthly dairy cattle slaughter has also been significantly below the numbers seen in the previous four years.
As we look forward to the rest of the year, it will be interesting to see the changes, especially if milk prices improve. For reference, current Class III futures suggest prices might hover around the $18.00 range, with Class IV contracts likely in the $20.00 to $21.00 range.
Understanding the Decrease in Cow Culls: An Overview
When you explore the reasons behind the decrease in cow culling numbers, one major factor stands out: the increased adoption of targeted breeding practices, particularly beef-on-dairy crosses. This method involves crossbreeding low-productivity dairy cows with beef semen, a trend that’s gaining momentum on dairies due to its potential for increased profitability and sustainability.
Moreover, according to Dale Woerner, the Cargill endowed professor in the Department of Animal and Food Sciences at Texas Tech, the dairy industry has a significant opportunity to increase calf value through the growth of beef-on-dairy calves. This innovative breeding strategy isn’t purely about numbers; it’s essential to driving supply chain efficiency.
Beef-on-dairy crossbreeding also helps address some key challenges in the cattle industry. It’s no secret that dairy calves typically fetch less value at meatpackers due to ‘dairy-type’ discounts. However, by implementing beef-on-dairy crossbreeding practices, producers can bring more carcass value to calves not being kept as replacements—a crucial step in maintaining momentum in the beef-on-dairy industry.
Despite the optimism, the shift towards more beef-on-dairy calves isn’t without its own set of challenges. The beef industry, for example, still needs to adapt to the ever-increasing presence of these crosses. And good management, from calf to feedlot, remains a critical element in securing success.
The lower availability of replacements also plays a role in fewer cows being culled. With fewer cows available for replacement, culling frequency naturally declines. However, the main driving force behind this trend seems to be the surge of interest in beef-on-dairy crossbreeding. So, while it might seem surprising at first glance, rest assured, the decrease in cow culls fits into a larger, more complex industry picture.
The Beef-on-Dairy Trend: A Game Changer in the Dairy Industry
You might be wondering why the beef-on-dairy trend is such a game changer in the dairy industry. The rising popularity of diversifying dairy operations with beef calves over the past few years has played a crucial role in this. This pattern of crossbreeding dairy cows with beef sires is not just merely a trend. It’s a significant advancement for the U.S. beef industry that introduces a new dynamic in both the dairy and beef sectors.
One of the main reasons behind this shift towards more targeted breeding of beef-on-dairy crosses is the tangible benefits it brings to the table. It advances sustainability efforts at the farm level and improves profitability by providing a new source of income for dairy farmers, especially in a time when the beef supply has decreased due to drought, and the demand for beef remains strong.
However, adapting to the increasing presence of beef-on-dairy crosses is not without its challenges for the beef industry. Better management from calf to feedlot is crucial to maintain momentum in the beef-on-dairy industry. There needs to be a growing acceptance of beef-on-dairy calves by cattle feeders and beef packers as well.
If the right balance is struck, the industry could witness a significant transformation—a mutually beneficial situation where dairy producers can capitalize on these crossbreeds. This is the transformation the Dairy Beef Accelerator program by Texas Tech University and Cargill aims to understand and facilitate.
With an estimated three million beef-on-dairy cattle already present in the U.S. beef industry, and that number likely to grow, it seems clear that the beef-on-dairy trend is here to stay.
How the Lack of Replacements Impacts Cow Culling
When you consider the cycle of life on a dairy farm, replacements – or the young cows ready to step in when the current dairy producers are culled – are a critical factor. Unfortunately, there’s been a noticeable decline in the availability of these new entrants into the dairy industry, and that’s having a sizeable impact on the level of culling.
This imbalance is due in part to modern dairy industry trends. Livestock genetic optimization has led to practices such as producing top-notch heifer replacements with sexed semen and breeding genetically less favorable cows to beef sires. While this approach can boost profitability in the long run, it also means fewer replacements are gearing up to join the herd.
So, what does this mean for culling? Simply put, with fewer replacements around, those cows initially earmarked for culling often get a reprieve. Dairy farmers are having to hold onto their herds for longer periods simply to keep production steady. A significant decrease in the pool of replacements inevitably places a pause button on culling activities.
The trend toward crossbreeding low genetically productive dairy cows with beef semen also plays a role in this dynamic, as it’s a strategy becoming more prevalent on dairy farms everywhere. Crossbreeding not only boosts profitability but also supports sustainability. However, the balancing act for farms is ensuring that this doesn’t detract from the availability of replacement dairy cows.
Overall, managing these industry shifts is a delicate but critical task. Optimizing profits, maintaining a steady number of milking machines, and ensuring the industry’s sustainability are all-important. However, success necessitates finding a suitable balance, particularly when it comes to the anticipated rate of culling and the corresponding availability of adequate replacements.
The Bottom Line
Ultimately, the decline in cow culling indicates a remarkable shift in the agriculture industry, in pursuit of long-term profitability, sustainability, and environmental stewardiness. This trend, fueled by the scarcity of replacements and the growing popularity of the beef-on-dairy method, points to a future of dairy farming that is centered around thoughtful management and value-based marketing opportunities. From implementing optimal feeding strategies to recognizing the importance of high-quality colostrum for calf development, farmers are turning more toward the practice of selective breeding and crossbreeding, ensuring a healthier herd and a steadier profit margin. The resulting additional revenue paints a promising picture, proving that advancements in farm management not only promote sustainability but also bolster the financial stability of the industry.
