DAIRY-BEEF PRODUCTION
FACT SHEET
Investigating New Marketing Options to
Increase Beef Production in Ontario
The Beef Farmers of Ontario (BFO) has investigated potential feeding strategies with Holstein calves as a way to increase
cattle numbers in the province and provide another marketing opportunity for beef farmers. On two separate occasions, BFO
has sent representatives abroad to gather information on a successful value chain in the United Kingdom, and has since
spent time investigating the cost and profitability prospects in the Ontario context.
There are approximately 300,000 dairy cows in Ontario.
Enhancing the industry with dairy-beef animals
could increase production for beef feedlots
by up to 200,000 animals.
Opportunity
Nutrition
There is a great opportunity to increase beef production in the province by collaborating with the dairy industry. Today, new
technologies allow dairy producers to select specific matings for female selection. Only the top third of the dairy cow herd
is required to supply replacement females, but typically all cows are bred dairy to ensure that there are enough females to
select from to begin milk production. Using an alternative marketing option, dairy farmers could breed the bottom two thirds
of their herd to beef bulls and produce bull calves by using sexed semen.
Nursing Stage: Ensure the calf receives adequate colostrum within the first two hours of birth, and at least six litres in the first
day. Feed high quality milk replacer for the first six weeks of life and provide fresh water and calf starter at all times. Gradually
wean the calf and increase the intake of calf starter.
Marketing
The major processing plants in Ontario recognize an opportunity to expand the beef industry by looking at alternative
marketing options. Dairy-beef is a major niche market in the United States. With increased production in Ontario, this product
could fit into a regular beef stream, and in time, it has the potential to develop into a branded beef program.
Growing Stage: Dairy animals require about 8-12% more energy in their ration compared to beef animals. Therefore, a high
energy diet with adequate protein is required. High quality forages or silages can be used.
Finishing Stage: In order to provide adequate fat and growth, offer a high energy ration at this stage. Optimize use of betaantagonists as per nutritionist recommendations. Target a live weight in the 1,400 - 1,500 lbs range at under 18 months for an
economical carcass.
Calf Supply
Housing
Currently, there are many purebred dairy animals that supply beef to the marketplace, either as veal or dairy-beef. With
better use of beef genetics, we can improve both the quality and quantity of beef produced. Under this model, calves are
sold privately through drovers or at live auction, typically at the first week of age. The general production system flows from
a pre-weaning calf program to backgrounding to finishing stages. A calf that is fed right through to finish is preferred over the
yearling sourced option, as yield and grade are adversely affected when the nutritional curve is interrupted.
Pre-weaning: While calves can be raised in individual pens, research shows that group housing is best for animal welfare and
growth after the first week of life. Again, proper ventilation is critical.
Health Protocol
Risk Management
Getting calves off to a good start is critical to long-term success. Research shows that meat quality is affected greatly by
health challenges of the neonatal calf. Respiratory challenges are very real, and well-ventilated barns for rearing calves,
accompanied by strong vaccination strategies and effective colostrum intake will help the calves remain healthy. Vaccinating
the cow herd prior to calving for respiratory complications, as well as the calves at birth, and at other appropriate times
throughout the calf’s life is highly encouraged. Throughout the growth stages, it is also strongly recommended to consult with
a veterinarian to establish strong health protocols.
DAIRY-BEEF FACT SHEET - INVESTIGATING MARKETING OPTIONS
BEEF FARMERS OF ONTARIO
Dairy cattle have thinner hides than beef cattle, and therefore need more shelter from mud and wind. A minimum three-sided
dry housing unit is critical for optimum animal performance.
There are several ways to manage risk:
• Utilizing Ontario’s Risk Management Program (RMP)
• Contracting with processors to provide guaranteed returns
• Participating in a value chain to maximize returns
BEEF FARMERS OF ONTARIO
INVESTIGATING MARKETING OPTIONS - DAIRY-BEEF FACT SHEET
Sample Dairy-Beef Steer Budget
Sample Budget - Birth to Finish
Calves bought at 100 pounds and sold at 1450 pounds
Quantity
Item
Unit
(per calf)
Receipts
Finished Steer
1450
lb
Total Receipts
Variable Costs
Calf
1
head
Death Loss
3
%
Feed Costs
Milk Replacer
20
kg
Starter Mix
33.95
kg
Corn Silage
2055
kg
Corn
2919
kg
Soy Meal
607
kg
Hay
152
kg
Premix
76
kg
Total Feed Costs
Health Program
Bedding (straw)
456
kg
Electricity
86.3
kwh
Equipment and Repairs
Insurance and Taxes
Marketing and Trucking
Miscellaneous
Interest on Working Capital
Total Variable Costs (sum of * variable costs)
Fixed Costs
Labour
10
hr
Building (includes stall barn)
Equipment Charge
Total Fixed Costs (sum of * fixed costs)
Total Costs (Total Variable Costs + Total Fixed Costs)
Returns
Returns over variable costs (Total Receipts - Total Variable Costs)
Net returns (Total Receipts - Total Costs)
Breakevens
Returns needed to cover variable costs ($/lb)
Returns needed to cover total costs ($/lb)
Sample
Dairy-Beef
Sample Budget - Phase One:
Nursing
Stage Steer Budget
518 Days on Feed
Price per Unit
Cost
$
2.00 $
$
$
440.00 $
$
$
$
$
$
$
$
$
4.12
0.69
0.03
0.19
0.72
0.18
1.25
$
$
$
Your Estimate
440.00 *
87.00 *
84.36
23.56
61.64
554.60
437.97
27.31
95.55
1,284.98
33.85
100.33
9.67
13.11
1.64
25.00
5.00
71.71
2,072.29
11.00 $
$
$
$
110.00
36.06
45.88
191.94
2264.23
$
$
*
*
*
*
*
*
*
*
*
*
*
*
*
827.71
635.77
$1.43
$1.56
175 Days on Feed
2.0 ADG
Unit
Price per Unit
Cost
Your Estimate
lb
$
2.30
$1,035.00
$1,035.00
head
%
$
440.00
$440.00
$20.70
kg
kg
kg
kg
kg
kg
kg
$
$
$
$
$
$
$
4.12
0.69
0.03
0.19
0.72
0.18
1.25
kg
kwh
$
$
0.22
0.11
$84.36
$23.56
$0.00
$133.00
$128.32
$0.00
$0.00
$369.24
$18.00
$32.99
$3.18
$4.37
$0.55
$25.00
$2.00
$13.20
$929.23
hr
$
11.00
$36.30
$4.00
$25.00
$65.30
$994.53
$105.77
$40.47
$2.06
$2.21
To customize your own input data, visit www.ontariobeef.com/programs
To customize your own input data, visit www.ontariobeef.com/programs
DAIRY-BEEF FACT SHEET - INVESTIGATING MARKETING OPTIONS
Item
100 lbs
450 lbs
Quantity
(per calf)
Receipts
Backgrounder
450
Total Receipts
Variable Costs
Calf
1
Death Loss
2
Feed Costs
Milk Replacer
20.5
Starter Mix
34.0
Corn Silage
0
Corn
700
Soy Meal
178.0
Hay
0
Premix
0
Total Feed Costs
Health Program
Bedding (straw)
150
Electricity
28.4
Equipment and Repairs
Insurance and Taxes
Marketing and Trucking
Miscellaneous
Interest on Working Capital
Total Variable Costs
Fixed Costs
Labour
3.3
Building (includes stall barn)
Equipment Charge
Total Fixed Costs
Total Costs
Returns
Returns over variable costs
Net returns
Breakevens
Returns needed to cover variable costs ($/lb)
Returns needed to cover total costs ($/lb)
2,900.00
2,900.00
$
$
$
$
$
$
$
$
$
0.22 $
0.11 $
$
$
$
$
$
$
Phase 1 Nursing Stage
Calves bought at:
Calves sold at:
BEEF FARMERS OF ONTARIO
BEEF FARMERS OF ONTARIO
INVESTIGATING MARKETING OPTIONS - DAIRY-BEEF FACT SHEET
Sample Dairy-Beef Steer Budget
Sample
Dairy-Beef
Steer Budget
Sample Budget - Phase Three:
Finishing
Stage
Sample Budget - Phase Two: Growing Stage
Phase 2 Grower Stage
Calves bought at:
Calves sold at:
Item
450 lbs
800 lbs
Quantity
Unit
(per calf)
Receipts
Grower Calf
800
Total Receipts
Variable Costs
Starter Calf
1
Death Loss
0.5
Feed Costs
Milk Replacer
0
Starter Mix
0
Corn Silage
1050
Corn
525.0
Soy Meal
145.8
Hay
72.9
Premix*
29.2
Total Feed Costs
Health Program
Bedding (straw)
156
Electricity
29.6
Equipment and Repairs
Insurance and Taxes
Marketing and Trucking
Miscellaneous
Interest on Working Capital
Total Variable Costs
Fixed Costs
Labour
3.3
Building (includes stall barn)
Equipment Charge
Total Fixed Costs
Total Costs
Returns
Returns over variable costs
Net returns
Breakevens
Returns needed to cover variable costs ($/lb)
Returns needed to cover total costs ($/lb)
146 Days on Feed
2.4 ADG
Price per Unit
Cost
Your Estimate
lb
$
2.00
$1,600.00
$1,600.00
head
%
$
1,035.00
$1,035.00
$8.00
kg
kg
kg
kg
kg
kg
kg
$
$
$
$
$
$
$
4.12
0.69
0.03
0.19
0.72
0.18
1.25
kg
kwh
$
$
0.22
0.11
$0.00
$0.00
$31.50
$99.75
$105.15
$13.13
$36.46
$285.98
$10.00
$34.36
$3.32
$4.37
$0.55
$25.00
$1.50
$19.59
$1,427.66
hr
$
11.00
$36.30
$4.00
$25.00
$65.30
$1,492.96
$172.34
$107.04
$1.78
$1.87
197 Days on Feed
3.3 ADG
Price per Unit
Cost
Your Estimate
lb
$
2.00
$2,900.00
$2,900.00
head
%
$
1,600.00
$1,600.00
$14.50
kg
kg
kg
kg
kg
kg
kg
$
$
$
$
$
$
$
4.12
0.69
0.03
0.19
0.72
0.18
1.25
kg
kwh
$
$
0.22
0.11
$0.00
$0.00
$30.14
$321.85
$204.50
$14.18
$59.09
$570.67
$5.85
$32.98
$3.18
$4.37
$0.55
$25.00
$1.50
$41.80
$2,300.39
hr
$
11.00
$36.30
$4.00
$25.00
$65.30
$2,365.69
$599.61
$534.31
$1.59
$1.63
* premix for finisher ration is based on 70.6% DM, 12.8% CP, 64.2 Mcal/cwt NEg
To customize your own input data, visit www.ontariobeef.com/programs
To customize your own input data, visit www.ontariobeef.com/programs
Item
800 lbs
1450 lbs
Quantity
Unit
(per calf)
Receipts
Finished Dairy Beef
1450
Total Receipts
Variable Costs
Grower Calf
1
Death Loss
0.5
Feed Costs
Milk Replacer
0
Starter Mix
0
Corn Silage
1004.5
Corn
1693.9
Soy Meal
283.6
Hay
78.8
Premix*
47.3
Total Feed Costs
Health Program
Bedding (straw)
150
Electricity
28.4
Equipment and Repairs
Insurance and Taxes
Marketing and Trucking
Miscellaneous
Interest on Working Capital
Total Variable Costs
Fixed Costs
Labour
3.3
Building (includes stall barn)
Equipment Charge
Total Fixed Costs
Total Costs
Returns
Returns over variable costs
Net returns
Breakevens
Returns needed to cover variable costs ($/lb)
Returns needed to cover total costs ($/lb)
* premix for grower ration is based on 57% DM, 13% CP, 57.6 Mcal/cwt NEg
DAIRY-BEEF FACT SHEET - INVESTIGATING MARKETING OPTIONS
Phase 3 Finisher Stage
Calves bought at:
Calves sold at:
BEEF FARMERS OF ONTARIO
BEEF FARMERS OF ONTARIO
INVESTIGATING MARKETING OPTIONS - DAIRY-BEEF FACT SHEET
The sample budgets within this document have
been created as a general guide for examining
the potential development of dairy-beef cattle.
This tool provides both estimated values,
as well as a location for operation-specific
values supplied by a producer. The information
contained within the budgets is derived from
a collaboration between experts, existing
literature, and a variety of sources. The sample
budgets are intended to be a general guide, and
individual situations are subject to variability.
***
This fact sheet was compiled in cooperation
with the Ontario Ministry of Agriculture, Food
and Rural Affairs.
For More Information
Dan Ferguson
Manager of Producer Relations
Beef Farmers of Ontario
905.375.8551
dan@ontariobeef.com
www.ontariobeef.com
www.makeitontariobeef.com