Purina 2025 Beef-on-Dairy Report: Key Findings for Dairy Producers

## Overview [Purina Animal Nutrition](https://www.purinamills.com/getmedia/2544b8cd-4890-4350-95f1-e5828b958b3e/2025_BEEF_ON_DAIRY_REPORT_SPREAD_FINAL.pdf), in collaboration with industry partners including CattleFax, Texas Tech University, West Texas A&M University, University of Nebraska-Lincoln, and Certified Angus Beef, has released their second annual **Beef-on-Dairy Industry Report**. This comprehensive analysis reveals that beef-on-dairy cattle have become foundational to the U.S. beef supply chain, now representing an estimated **12-15% of annual fed slaughter**. The report brings together insights from leading researchers, market analysts, and industry practitioners to provide dairy producers with actionable strategies for maximizing value from their beef-on-dairy programs. --- ## Key Finding #1: A Maturing Market with Steady Value According to **Patrick Linnell, Director of Market Research at CattleFax**, the beef-on-dairy sector is transitioning from rapid growth into a more mature, predictable phase: - **Peak production reached**: Beef-on-dairy crossbred calf volumes have likely hit their ceiling - **Gradual decline expected**: Projections show 300,000-400,000 fewer head in coming years - **Breeding adjustments**: Beef-on-dairy breedings were down approximately 5% in 2024 as dairies work to rebuild replacement heifer inventories - **Strong demand persists**: Domestic and global beef demand remains remarkably strong despite economic headwinds *"While market growth may be slowing, the focus has shifted from volume to value. The future of this market will be shaped by those who can produce high-quality, efficient animals."* — Patrick Linnell, CattleFax --- ## Key Finding #2: Narrowing Price Gap Reflects Market Confidence One of the most significant developments is the **dramatic narrowing of the price spread** between beef-on-dairy calves and native beef cattle: - Three years ago, beef-on-dairy calves sold at steep discounts - Better genetics and smarter breeding decisions have transformed market perception - Genetic suppliers have optimized beef sire selection for dairy cows - Feedlots and packers now have increased confidence in crossbred cattle performance - While small discounts remain in some weight classes, they are often offset by reliability and feedlot performance --- ## Key Finding #3: The Case for Raising with Intent **Dr. Ruth Woiwode**, Assistant Professor at the University of Nebraska-Lincoln, emphasizes that successful beef-on-dairy programs require raising calves with intent — approaching calf care as a deliberate process with clear goals: ### Beginning with the End in Mind - **Clear outcomes**: Understanding the expected endpoint (terminal beef animal) - **Defined protocols**: Feeding, housing, and health programs matched to goals - **Strategic coordination**: Seamless transitions between dairy, calf ranch, and feedyard ### The Five Pillars of Calf Management 1. **Nutrition**: Ensuring calves receive nutrients critical to growth and health 2. **Environment**: Providing thermal comfort and physical protection 3. **Health**: Prevention and treatment of injury and disease 4. **Behavior**: Allowing expression of natural behaviors 5. **Mental States**: Ensuring calves do not experience distress; offering pain management *"Stewardship means more than meeting minimum requirements. It means designing systems that support full development — nutritionally, behaviorally, and socially."* — Dr. Ruth Woiwode, University of Nebraska-Lincoln --- ## Key Finding #4: Now Is the Time to Invest in Nutrition With beef-on-dairy calf prices reaching record highs — **$1,000-$1,500 Canadian for a newborn black calf** — Drs. Michael Steele (University of Guelph) and Tom Earleywine (Land O'Lakes) argue that producers have a unique window to build long-term value: ### Why Nutrition Matters - What we feed in the first weeks of life shapes everything from carcass consistency to market reputation - Without better nutrition and management, current high values may not persist - Early-life nutrition impacts performance all the way to harvest - A single setback in early life can affect the animal's entire production lifecycle --- ## Key Finding #5: Supply Chain Coordination Is Critical **Laurence Williams**, Beef-on-Dairy Development at Purina Animal Nutrition, emphasizes the importance of connecting all stakeholders: ### The Collaborative Approach - Getting the supply chain around the table to connect the dots - One-on-one work with producers and calf raisers - Partnership with academic institutions (Texas Tech, West Texas A&M) - Collaboration with brands like Certified Angus Beef *"These are great cattle with great value. As an industry, we can do a better job of managing these calves to ensure they do not have a bad day — because a single setback in early life can impact their performance all the way to harvest."* — Laurence Williams, Purina Animal Nutrition --- ## Key Finding #6: Value Over Volume Is the New Paradigm The report's central message is clear: **the focus must shift from volume to value**. Key strategic imperatives include: ### For Producers - Balance replacement heifer production with beef-on-dairy programs - Invest in better genetics and nutrition programs - Implement consistent protocols for calf care - Train workforce on the reasoning behind management practices ### For the Industry - Improve coordination between dairies, calf ranches, and feedyards - Develop science-backed nutrition programs - Focus on producing high-quality, efficient animals - Align with evolving needs of packers, feedlots, and consumers --- ## Market Outlook The report provides a measured outlook for the beef-on-dairy sector: | Factor | Status | |--------|--------| | Beef cow herd recovery | Ongoing (multi-year decline due to drought and tight margins) | | Consumer beef demand | Strong domestically and globally | | Beef-on-dairy volumes | Near peak, gradual decline expected | | Price spread vs. native beef | Narrowing significantly | | Quality expectations | Rising across the supply chain | --- ## Conclusion The Purina 2025 Beef-on-Dairy Industry Report makes clear that while the explosive growth phase may be ending, the opportunity for dairy producers remains substantial. Success will depend on: 1. **Intentional management** — raising calves with clear goals and defined protocols 2. **Strategic investment** in nutrition and genetics 3. **Supply chain coordination** across all stakeholders 4. **Quality focus** over volume expansion For dairy producers considering or expanding beef-on-dairy programs, the message is clear: these cattle represent significant value, but realizing that value requires commitment to excellence at every stage of production. --- ## About This Report This article summarizes key findings from the **Purina Animal Nutrition Beef-on-Dairy Industry Report: Second Edition**, published in 2025. The full report was developed in collaboration with CattleFax, Texas Tech University, West Texas A&M University, University of Nebraska-Lincoln, University of Guelph, Certified Angus Beef, and other industry partners. **[Read the Full Report (PDF)](https://www.purinamills.com/getmedia/2544b8cd-4890-4350-95f1-e5828b958b3e/2025_BEEF_ON_DAIRY_REPORT_SPREAD_FINAL.pdf)** *Source: Purina Animal Nutrition. Beef-on-Dairy Industry Report: Second Edition. 2025.*