Beef-cross calf prices continue to rise, but their percentage premium over dairy calves is narrowing

Analyzing six years of auction data, authors of a new study in Applied Animal Science reveal the shifting market dynamics of beef-on-dairy breeding

Champaign, IL, August 10, 2026---Dairy producers have embraced beef-on-dairy breeding--the practice of using beef sires and dairy cows to produce crossbred cattle intended for beef production--at a remarkable pace. Beef semen sales in the United States increased 283% between 2017 and 2024, driven by the promise that a beef-cross calf will bring more money at sale than a straightbred dairy calf, improving a dairy producer’s bottom line. But, how much more, and whether that extent of the advantage is holding, has been difficult to answer with real market numbers. A new study published in Applied Animal Science digs into six years of auction reports to help better understand the economic factors of calf genetics and sales price, showing that as calf prices have soared, the percentage premium of beef-cross calves over straightbred dairy calves has actually shrunk.

“We’re several years into the beef-on-dairy boom, so we were curious to really compare the value of beef-dairy-cross cattle with their dairy and beef counterparts today and see how it might have changed in recent years,” said author Jerad Jaborek, PhD, with Michigan State University Extension (East Lansing, MI, USA). Working with agricultural economist Jaime Luke, PhD, of Michigan State University, Jaborek analyzed US Department of Agriculture (USDA) Agricultural Marketing Service reports covering sales in Kentucky and Pennsylvania from mid-2020 through the end of 2025. The two markets offered a useful contrast, allowing the researchers to compare beef-dairy-cross bull calves, beef-dairy-cross heifer calves, and dairy bull calves across regions, grades, and years.

“What the data shows is that the beef-on-dairy price premium is still very real in total dollars, but the overall percentage difference between calf prices is shrinking,” explained Jaborek, “Our data showed that while average mean prices increased from 2020 to 2025, the percentage difference between the price of beef-dairy-cross bull calves and dairy bull calves decreased from 282% in 2020 and settled at 29% to 38% in 2025, which is a distinction that matters a great deal when a producer is deciding which semen to buy.”

This same trend holds steady when comparing beef-dairy-cross heifer calves, with price premiums for the beef-dairy-cross animals increasing over the study period in absolute terms but decreasing from 239% in 2020 to 17% to 32% in 2025. The authors also compared beef-cross bull calves with their heifer counterparts, where the gap proved considerably smaller and more variable than expected.

Caption: Beef-dairy-cross bull calves have demanded a premium price compared with dairy bull calves and beef-dairy-cross heifer calves over the last six years, but a recent Applied Animal Science analysis shows that the percentage difference gap has started to tighten (Credit: Jerad Jaborek).

“Right now, every calf in this market is benefiting from tight cattle supplies and strong beef demand, so it’s a good time to be selling,” Jaborek said. “But, markets are always changing, and it’s worth knowing where your calves actually sit in a shifting market as producers make important decisions for the future.”

The authors are candid about the limits of what public auction reports can tell them. The reports capture breed, sex, and grade but nothing about lot size, seller, or health status, all of which shape pricing. Coverage is also uneven, with some weeks missing entirely. Jaborek and Luke argue that better and more frequent market data would let dairy producers make sharper decisions about a breeding strategy that now touches a large share of the US dairy herd.

“The sale of young calves contributes to the profitability of many dairy farms. This article used market data to evaluate price differences between dairy calves and dairy-beef-cross calves,” commented Bill Weiss, PhD, PAS, Dipl. ACAS, editor in chief of Applied Animal Science. “This article will help dairy farmers make wiser economic decisions on whether to use beef or dairy semen if the farm is planning on selling calves for the beef market.”

The full analysis, including year-by-year price details, appears in the August 2026 issue of Applied Animal Science.

Notes for editors
“Market price differences between beef-dairy-cross calves and dairy bull calves from Kentucky and Pennsylvania auctions,” by Jaime R. Luke and Jerad R. Jaborek (https://doi.org/10.15232/aas.2026-02804), Applied Animal Science, volume 42, issue 4 (August 2026), published by FASS and Elsevier.

This article is openly available at https://doi.org/10.15232/aas.2026-02804.   

To schedule an interview with the author(s), please contact Jerad Jaborek at jaborekj@msu.edu.

About Applied Animal Science
Applied Animal Science (AAS) is a gold open access, peer-reviewed scientific journal and the official publication of the American Registry of Professional Animal Scientists (ARPAS). In continuous publication since 1985, AAS is a leading outlet for animal science research. It has a Journal Impact Factor and is indexed by Scopus, Clarivate, CABI, and AGRICOLA. AAS caters to a wide and comprehensive audience, and its readers are typically university, extension, animal-industry, and government employees; members of professional societies and related organizations; producers, commodity organizations, and related feed and foods industries; researchers and students; and consultants and companies providing products and services in animal agriculture. The journal welcomes novel manuscripts on applied technology, reviews on the use or application of research-based information on animal agriculture, commentaries on contemporary issues, short communications, and technical notes. Topics that will be considered for publication include (but are not limited to) feed science, farm animal management and production, dairy science, meat science, animal nutrition, reproduction, animal physiology and behavior, disease control and prevention, microbiology, agricultural economics, and environmental issues related to agriculture. Themed special issues also will be considered for publication. www.appliedanimalscience.org

About the American Registry of Professional Animal Scientists (ARPAS)
The American Registry of Professional Animal Scientists (ARPAS) is the organization that provides certification of animal scientists through examination, continuing education, and commitment to a code of ethics. Continual improvement of individual members is catalyzed through publications (including the AAS journal) and by providing information on educational opportunities. ARPAS is affiliated with five professional societies: American Dairy Science Association, American Meat Science Association, American Society of Animal Science, Equine Science Society, and Poultry Science Association. www.arpas.org

About FASS
FASS, the services division of the American Dairy Science Association, provides management services to nonprofit associations and societies with a mutual interest in supporting the advancement of animal agriculture and food systems through research and education. We support nonprofits by providing services for accounting, membership management, convention and meeting planning, information technology, and scientific publishing. The FASS publications department provides journal management, peer-review support, copyediting, composition, and proofreading; the staff includes several BELS-certified (www.bels.org) technical editors and experienced composition staff. www.fass.org

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