Dairy-origin beef approach: risks and rewards

According to a recent RaboResearch report, dairy-beef is emerging as a strategic opportunity to enhance value, reduce waste, and reshape global beef supply chains. By integrating beef genetics into dairy systems, the dairy-beef approach is not a new concept; however, the report reveals it could help producers unlock new revenue streams, improve animal welfare and meet evolving market and sustainability demands.

Dairy-beef, or beef-on-dairy, refers to animals derived from the dairy industry that enter the beef value chain. Emma Higgins, Senior Agriculture Analyst for RaboResearch, explains, “While cull dairy cows and dairy-origin calves have long been part of global beef supply chains, the strategic integration of beef genetics into dairy herds is now becoming mainstream.” This integration is reported to be able to offer a solution to global protein demand, ethical scrutiny and climate pressures.

Dairy-beef is transitioning from a niche concept to a mainstream component of global beef supply chains. In some regions, it is approaching business-as-usual status, while in others, it remains an emerging opportunity. To fully realise the potential of dairy-beef, strategic investment and collaboration across the value chain are essential.

While dairy-beef has benefits, there are risks involved. A rapid transition could disrupt traditional beef systems, particularly suckler herds. Seasonal, pasture-based models face greater challenges, but tailored strategies and region-specific investment can overcome these hurdles. “Dairy-beef has the potential to reshape regional beef supply chains, particularly in New Zealand and Australia. The opportunity is clear; the challenge now is execution,” Higgins said.

Farmers require support with knowledge and resources to implement effective breeding strategies. Access to sexed and high-genetic-merit beef semen, decision-making tools like Ireland’s Dairy Beef Index, and infrastructure for calf rearing and weaning are crucial foundations for success.

As dairy-beef volumes grow, regions like New Zealand and Australia may face pressure on finishing and processing capacity. Investment in feedlot infrastructure, finishing systems, and meat processing facilities will be critical to avoid bottlenecks and ensure consistent carcass quality.

In order to succeed, all stakeholders, including farmers, processors, retailers, industry bodies and policymakers, play a role. The report says market access, consumer education and traceability systems are key to building trust and value in dairy-beef products.

Market signals drive change, but their strength varies by region. The report says US benefits from a responsive domestic market, while export-oriented regions like New Zealand and Australia face slower signals due to longer supply chains. Clearer market signals and stronger coordination are needed to unlock momentum in these regions.

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