RaboResearch: Beef genetics will transform global supply chains

"Dairy beef" or "milk beef" refers to animals obtained from the dairy industry and included in the beef value chain. "Although culled dairy cows and"Dairy-bred calves have long been part of global beef supply chains, and the strategic integration of beef genetics into dairy herds is becoming common practice," said Emma Higgins, senior agricultural analyst at RaboResearch.

This integration offers a timely solution to the challenges of global protein demand, ethical issues and climate pressure.

Dairy and beef farming is evolving from a niche concept into a core component of global beef supply chains. In some regions, it is approaching the status of a regular business, while in others, it remains an emerging opportunity. Realizing the full potential of dairy and beef farming requires strategic investment and collaboration across the entire value chain.

Despite the obvious advantages of dairy and beef farming, there are risks. A rapid transition could disrupt traditional beef farming systems, especially those that rely on suckler cows. Seasonal, pasture-based models face significant challenges, but tailored strategies and investments tailored to regional circumstances can overcome these obstacles. "Dairy beef has the potential to transform regional beef supply chains, particularly in New Zealand and Australia," Higgins said. "The opportunity is clear; the challenge now is implementation."

Farmers need support in the form of knowledge and resources to implement effective breeding strategies. Access to sexed and high-genetic beef semen, decision-making tools such as the Irish Dairy Beef Index, and infrastructure for calf rearing and weaning are critical to success.

As dairy beef production grows, regions such as New Zealand and Australia may face a shortage of feedlot and processing capacity. Investments in feedlot infrastructure, finishing systems, and processing facilities will be critical to preventing bottlenecks and ensuring consistent carcass quality.

All stakeholders, including farmers, processors, retailers, industry organizations, and policymakers, play a role in developing markets, promoting dairy beef, and establishing benchmarks. Market access, consumer information, and traceability systems are key to building trust in dairy and beef products and enhancing their value.

Market signals drive change, but their strength varies across regions. The United States 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 closer coordination are needed to realize momentum in these regions.

Pressure for social license regarding the underutilization of dairy calves is increasing. Integrated dairy and beef farming systems offer a way to reduce calf underutilization and improve lifecycle efficiency, strengthening the sector's image and long-term viability.