Beef-on-dairy cattle in a feedlot in Colorado. The curiosity of the beef-on-dairy cattle is noticeable with all of them being in contact with humans every day from when they are born.
THE beef industry has been invited to double-down on dairy beef with a national program to place all viable non-replacement dairy calves into Australia’s red meat supply chain.
Dairy Australia, the industry equivalent of MLA, is seeking beef industry input into the project called Calfways – a contraction of Calf Pathways.
Dr Andy Hancock, Dairy Australia’s Sustainable Animal Care Manager
The project was developed over the past 18 months and launched on Thursday at the Australian Dairy Conference at the Gold Coast attended by 650 people.
The project originates from a Dairy Australia dairy industry policy to ensure all calves enter a valued market chain by 2035, with no on-farm euthanasia of viable calves.
Leading the project is veterinarian Dr Andy Hancock, Dairy Australia’s Sustainable Animal Care Manager.
“To achieve the industry objectives, the project is aiming to input 300,000 to 400,000 extra animals per year into the beef supply chain. But if you look at the number of animals that are processed each year in the beef supply chain its only about a 7pc increase and we’d be looking to do that over 10 years.”
He noted an inverse correlation between calf supply and market prices. “When beef prices are good, people hang onto their calves and when the beef prices are bad, more calves go into bobby calf processing.”
He said Dairy Australia was hoping to partner with red meat industry agents. “We’re dairy. We can talk about the benefits to beef farmers but we don’t know the industry as intimately as MLA or the beef supply chain participants. This is why it’s really important to partner with them.
“We’re in close discussion with MLA and hoping to partner with them and also bring in other supply chain participants – I think that’s a really good start. The hard part will be making sure that everyone is working together towards the same goal, possibly with lots of different commercial objectives,” he said. “But I think there’s a lot of momentum in this space, a lot of goodwill.
“The difficult part of it currently for a dairy farmer or a calf rearer or finisher – any intermediary along the dairy beef supply chain – is to have the confidence to invest in infrastructure, whether it’s additional calving facilities, additional land or labour, given that the beef market is so volatile. An investment made today might be a loss in two years time and that’s always been the hardest nut to crack.
“And so, what the road map would hope to achieve – and what these industry partnerships would hope to develop – are market mechanisms that help to decouple the relationship between calf supply and beef price risk and capital and risk and supply chain.”
So, how could beef farmers benefit? Dr Hancock continued: “In those structured programs with specific genetics, the right genetics, the beef genetics will produce the dairy farmers can provide beef farmers with a source of calves that are going to grow well and meet specifications at slaughter.”
He said the development work had not established a dairy beef ‘hot spot’. “Every region has different pressures and challenges. For example, Tasmania is a highly seasonal dairy area with a scarcity of land, and so, for dairy farmers to get rid of rear their calves it is quite expensive to invest in infrastructure, land and labour. That’s different to Queensland or WA where there’s year-round calving systems and they have more capacity to rear their own calves to a certain age. Every region is going to need its own solution,” he said, adding that the industry could see more interstate trucking of livestock.
“One big benefit for the retailers, beef farmers and the beef processors is that the scope three emissions from beef from dairy are significantly less due to the fact that in carbon accounting methodology a portion of the lifetime emissions from the animal can be attributed to its dam’s milk production. (UK supermarket giant) Sainsbury’s is branding its vertically integrated dairy beef as 25%-lower carbon.”
The Sainsbury’s program, which has been running for over 10 years sees UK dairy farmers allocated supplying seven-day-old Angus-cross calves at an agreed price, currently between £200 and £250 pounds per calf. The calves then go onto a dedicated calf rearer who also gets an agreed price provided they meet specifications before the animal goes onto a finishing unit, the processor and the supermarket shelf.
Dr Hancock said: “So the volatility risk is managed by the supermarket, which have the mechanisms to do so. And it’s a really successful program for them, they’ve currently got 90,000 calves per year going into this program with only 15,000 calves coming from their own dairy suppliers, so they are getting another 75,000 a year from other dairy farms. So it’s a really popular program.”
Timing is right
Fulton Marketing Group strategic sourcing manager Andrew Ralph told the conference the timing was right to bring dairy genetics into Australia’s red meat supply chain.
“We’ve taken a look at what’s happening in North America.
Sexed semen has revolutionized the beef industry, particularly in the realm of dairy beef production. This technology has brought about a newfound awareness of the potential for beef production within dairy operations, opening up a world of possibilities for farmers looking to diversify their income streams.
One individual leading the charge in this arena is Andrew Ralph, who is spearheading a pilot project in northern Victoria and Tasmania to measure the carcase performance of high-end dairy beef animals. The project has yielded promising results, with average daily gains ranging from 1.3kg to 1.9kg over a 90-day feeding period, and some animals achieving remarkable marbling scores.
Key to the success of these dairy beef animals is genetic selection, with a focus on sires that have demonstrated superior performance in beef production. This emphasis on genetics has led to significant improvements in the quality of calves, ultimately driving up the value of dairy beef animals in the market.
In the United States, meatpackers have played a pivotal role in driving these changes by demanding higher-quality beef from dairy animals. This shift has prompted feedlots and calf-rearing enterprises to elevate their genetics game, resulting in improved gradings and yields.
The US beef on dairy herd currently stands at 3.5 million head, with expectations that this number will continue to rise. Andrew predicts that dairy beef yields will surpass those of ‘native’ (pure-bred) animals within the next five years.
While the Australian landscape may present different challenges and market demands, the principles of dairy beef rearing remain consistent. Understanding the target market, selecting superior genetics, and providing adequate nutrition are essential components of a successful dairy beef operation.
One family that has embraced dairy beef production is the Gardiner family of northern Victoria. By utilizing sexed-semen technology and strategically breeding their Holsteins with Angus and Wagyu sires, they have developed a profitable system for producing high-quality dairy beef animals.
The Gardiners have recognized the importance of animal welfare in their operation, opting to rear their calves to a certain weight before selling them to feedlots or calf-rearers. By focusing on quality genetics and providing optimal care for their animals, they have been able to achieve consistent results in the market.
Ultimately, the success of dairy beef production hinges on the early adopters who are willing to embrace new technologies and practices. By staying ahead of the curve and prioritizing quality in their operations, farmers like the Gardiners are paving the way for a thriving dairy beef industry.
There’s a money pathway and a moral pathway, and the moral pathway drives us more than anything. So, what’s in it for the beef producer? “I think for the beef producers it’s a steady stream of animals that they can rely on every year.
“We think it’s important to have trusted relationships along the chain. We all do a good job which leads to a great and consistent product and we all need a slice of the pie to, at minimum, cover our costs and at best generate profits,” she said.
Waiting list for Angus x dairy calves
Another Victorian, Kevin Jones, has a waiting list for his Angus-cross calves among local beef producers. He milks 900 cows near Foster in South Gippsland, calving three times a year for a continuous supply of calves. Now, 18 months into the business and after two calving drops, he is bringing some Wagyu genetics into the breeding program which delivers about 200 calves yearly.
“Now we never have any problem getting rid of bobby calves anymore,” he said.
Kevin Jones
