Surplus Calves

Decisions about which pathways surplus or non-replacement calves are to be directed through have traditionally been made largely according to economic drivers. Historically, dairy breed animals have often been regarded as poor candidates for beef production, leading to price discounts. As a result, surplus calves have been more likely to be reared for beef production when beef prices are favourable, and more likely to be managed through early life slaughter when beef prices are poor (see Dairy Calf Market Pathway Trends 2010-21 fact sheet below).  

Increasingly, the global dairy industry is recognising early life slaughter as a significant risk to the industry’s social license to operate, with many countries now moving to prevent the practice. Whilst this is not the case in Australia, it is increasingly being recognised that efforts should be made to work towards management practices for surplus calves that are more socially acceptable than early life slaughter in order to preserve our social license to operate.  

The key challenge for the Australian dairy industry is to work towards alternatives to early life slaughter that are economically viable in addition to being socially acceptable. 

Traditional approaches to breeding the dairy herd have focused on producing the required number of replacement females and maximising genetic gain. While this is still fundamentally important, the increasing focus on how we manage the surplus or non-replacement component of the calves born each year is seeing the emergence of what are sometimes referred to as ‘responsible breeding strategies’.

What is a ‘responsible breeding strategy’?

A ‘responsible breeding strategy’ places equal focus on the genetic merit of surplus calves and their intended purpose as it does the replacement heifer component of the calf drop. In this approach, consideration is given to all calves that are likely to be born, which cows they are to be bred from and the most appropriate sire for each calf’s intended pathway. Technologies that assist with these strategies include:

• Sexed semen

• Quality beef genetics (‘beef on dairy’ breeding programs)

• Genomic selection

In practice, these strategies often involve using sexed semen and genomics to breed only the required number of replacement females from the highest genetic merit dams in the herd. Appropriate beef genetics can then be used as a terminal cross over lower genetic merit females from whom it is not desirable to breed the next generation of replacement females (also known as ‘beef on dairy’ breeding programs).

Whilst we know that rearing surplus calves for beef production is more socially acceptable than early life slaughter, ensuring the production systems are economically viable is a challenge.  

Specific challenges to be met include:  

• Availability of labour 
• Infrastructure to rear calves 
• Potential impacts on animal welfare or the environment  
• Potential fluctuations in seasonal conditions and commodity prices.  

For a dairy farm business, the primary focus is of course on milk production, further complicating the challenge of achieving efficient beef production from the dairy herd.  

When considering utilising a beef on dairy crossbreeding program, there are several important factors to keep in mind. These include what beef genetics to use, how the calves will be managed pre and post weaning, where the animals will be sold and market demand for these animals.  

There are no one size fits all solutions when it comes to selecting the best beef breed for use over the dairy herd. There is a wide selection of sires to choose from and the decisions made can have a large impact on the success of the outcome. Some factors to consider include: 

Impact on the dairy herd 

• Fertility - when considering the cows in the herd that are likely to be bred to beef semen, it is likely that some of them may have had previous returns to service or been impacted by health issues such as dystocia. For this reason it is essential to prioritise fertility when selecting beef semen or bulls. 
• Calving ease –  with the primary focus of the dairy enterprise being milk production, minimising the incidence of dystocia is essential. An easy calving also helps calves get the best start possible. Beef sires can vary considerably in their Estimated Breeding Values for calving ease and this should always be prioritised when selecting sires. 
• Gestation length – there are many beef bulls available for use over the dairy herd that have been selected for shorter gestation lengths. This can help later calving cows to calve earlier the following year which can be advantageous when using beef over the ‘tail end’ of the herd, especially in seasonal production systems. 

Impact on the quality of calves 

• Meat quality – in general, dairy breeds such as Holsteins and Jerseys rate quite highly  in meat quality aspects such as taste, marbling and tenderness.  
• Carcase conformation and yield – in contrast to quality, dairy breeds tend to underperform in  carcase conformation and yield. Beef on dairy crossbreeding programs should therefore look to use sires that improve the carcase conformation and yield of crossbred calves while capitalising on the dairy breeds’ meat quality traits.  
• Performance – whilst an emphasis on high calving ease and short gestation length are important factors when considering the impact on the dairy herd, it is important to ensure that this does not impact the growth and performance of the calf once it is born. Selecting for high growth rates in beef on dairy crossbred calves will help address the lower growth rates seen in pure dairy breed animals in comparison to beef breeds.  
• Welfare – consider whether there are aspects of using a particular beef sire that can improve the welfare of the resultant calves. For example, using polled sires can help reduce the need for disbudding calves. 
• Target market – where do you intend to sell the calves and what does the market desire of them? Is a particular coat colour or breed more desirable?  

Dairy beef supply chains can involve multiple different stakeholders including: 

• Genetics providers 

• Dairy farms 

• Calf rearers 

• Backgrounding operations 

• Feedlots 

• Meat processors 

• Retailers and/or food service 

• Customers 

Understanding what each stakeholder in the supply chain needs and factoring this into decision making at each point is vital to the success of beef on dairy programs. Fluctuations in seasonal conditions and commodity prices will continue to challenge the viability of beef on dairy systems over the long term. However, ensuring we are breeding and growing calves that the market wants to buy will help to withstand some degree of market and seasonal volatility.  

Consideration also needs to be given to how dairy-origin beef animals are being sold. There are a range of different options available for selling beef cattle, with some relying more on successful relationships along the supply chain than others. Things to consider include:   

• Is it more desirable for the business to focus on the open market or elect to enter into forward price contracts?  

• How are we best placed to withstand year-on-year fluctuations in seasonal and commodity prices? 

• Could the method by which we sell animals and the markets to which we sell them impact the industry’s image and/or the welfare of the animals (e.g. selling via online market places to inexperienced landholders)? 

Learn more about some of the different selling options available for beef animals.