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Beef from the Dairy Industry

• Focus on Holstein bull calves and crossbreeds (Angus, Limousine, Hereford).

Dairy Beef Production Stats

• U.S. has 9.3 million dairy cows (2017).
• California has approx. 1.6 million dairy cows (2019).
• Calving rate: 125-128 live calves per 100 cows.
• Birth weight of calves: 85-95 lbs.
• Calves sold as day old, raised to approx. 300 lbs.

Feedlot Growing Process

• After calf ranch, calves sold to feedlot; grow from 300 to 1350-1450 lbs.
• Current prices (11/03/2017):
  • Angus: $1.17/lb (1350 lbs)
  • Angus-X Holstein: $1.15-$1.16 (1450 lbs)
  • Holstein: $1.05-$1.06/lb
  • 4 years ago pricing: Angus $1.66/lb.

Slaughter Yield Comparison

• Angus yield: 63.5-64%.
• Holstein yield: 60.5-61%.

Changes in Dairy Breeding

• Using sexed semen: 57% heifer calves from first service.
• Aiming for 79-81% heifer calves with sexed semen on all cows.
• Day-old bull calf prices (11/03/17): Holstein $80-100, Angus $200.

Feeding Advantages

• Angus steers vs. Holstein steers:
  • Better feed conversion: 6.9 lbs gain per lb feed vs 7.2 lbs.
  • Average daily gain (ADG): Angus 3.3 lbs/day vs Holstein 2.9 lbs/day.
  • Better grading and higher prime cuts percentage.
  • Better dressing percentage: Angus 63-64% vs Holstein 60%.

Economic Impact

• Beef steers yield 3-4% more meat (approx. 25 lbs more per carcass).
• Impact on processing: 25,000 lbs more per 1000 head processed.
• Angus x Holstein steers receive a market premium (decreasing from $200 to $150).
• Angus x Holstein can finish 40-50 days sooner, resulting in less feed usage.
• 25% of dairy cows bred to beef sires yields 3.5 million dairy beef for slaughter annually.
• Current slaughter weights: 1400-1450 lbs.

Industry Trends

• Tyson Foods has ceased purchasing Holstein steers due to market shifts.