The beef industry is currently enjoying a scarcity supply premium. As industry market outcomes shift with more volume, buyers will become more selective, and the profit gap between a mediocre calf and verified genetics will become apparent.

A panel at the High Plains Dairy Conference discussed the future of the beef-on-dairy program, noting many operations may be missing value by relying too heavily on black-hided genetics rather than performance-based breeding decisions. Traits such as growth, feed efficiency and carcass quality are more closely tied to long-term profitability. The panel offered four tips to drive success in 2026:

  • Verify Genetics: Use programs that provide data-backed premiums.
  • Focus on the Dam: Recognize the Holstein/Jersey base is just as important as the beef sire.
  • Build Relationships: Partner with feedyards and packers who value consistency over volume.
  • Capture the Data: Understand that the past decade has taught us that variability is the most expensive mistake a dairy can make.

As the industry moves forward, beef-on-dairy is no longer seen as an opportunistic trend but as a more efficient and profitable American beef supply chain. Read the full article for insights on current auction sales prices, quantifying the gap in calf profitability by genetics.