By Darren Turley
TAD Executive Director
What’s ahead for dairy in 2026? Most notably, a continuation of a significant shift that impacts both the milk market and beef supply chain.
Over the past decade, beef-on-dairy – the practice of breeding dairy cows with beef bulls, producing calves specifically intended for beef production and the feedlot – has grown from an experiment to a mainstream practice.
Beef-on-dairy has expanded as reproductive technology, and the ability to control genetics, has advanced and become more common. This has allowed dairy farmers to control the number of replacement heifers they need, while breeding beef-on-dairy calves to benefit the bottom line without increasing the size of the herd.
In addition to economics, performance advantages of beef-on-dairy has driven adoption of the practice.
Crossbred beef-on-dairy calves benefit from hybrid vigor (heterosis), which improves performance compared to traditional dairy calves. Research and industry data show these calves achieve:
- 4–6% higher weaning weights
- 5–8% better feed efficiency
- Improved survival rates and fewer health challenges
In the feedlot and packing sectors, the advantages continue. Beef-on-dairy cattle produce carcasses with good marbling – 35-45% qualify for premium programs – along with consistent tenderness and longer shelf life. They also contribute to sustainability goals by requiring fewer days on feed and experiencing lower death loss.
How much has beef-on-dairy grown? Almost three-fourths of U.S. dairy farmers are actively crossbreeding using beef genetics, while another 16% are considering adoption, according to a 2024 Purina survey. Beef semen sales into dairy herds also reflect this growth, rising from 1.2 million units in 2010 to 9.4 million units in 2023, roughly 84% of which were used in dairy herds.
Production numbers tell a similar story. CattleFax estimates that beef-on-dairy calf production increased from 50,000 head in 2014 to 3.22 million head in 2024, with projections reaching 5–6 million head by 2026.
Today, these crossbred cattle account for 12–15% of fed beef harvests, and they could represent 15% of total U.S. cattle slaughter by 2026, particularly as beef cow inventories remain historically low. Dairy-origin cattle – both pure dairy and crossbred – historically account for 18–24% of total U.S. beef production, underscoring the dairy sector’s ongoing role in feeding beef demand.
These crossbred calves are bringing a new revenue stream to today’s dairies. Crossbred calves bring a premium compared to traditional dairy calves, which has brought dairy farmers improved cash flow and helped offset volatility in milk prices.
The national dairy herd has grown in the last year, partially due to dairy producers holding on to pregnant cows longer due to the increased economics of these crossbreed calves. That growth has helped push milk supplies higher, contributing to downward pressure on milk prices heading into 2026.
This change in breeding also has led to a decline in dairy replacement supply numbers to a 20-year low. This raises concerns that the industry will have enough cows to fulfill milk production needs, particularly as new processing plants come online.
In the near term, beef prices are expected remain strong and milk prices are projected to decline through the first half of the year. As a result, dairy producers are destined to be bigger players in the beef supply chain through beef-on-dairy crossbred calves for years to come. At the same time, milk demand continues to grow, especially in states such as Texas.
This creates a balancing act for the dairy industry, as well has demonstrates the increasing interconnection between today’s dairy and beef markets.
