E92 How Dairy Farmers Profit from Strong Beef Prices Amid Historic Highs

Live cattle prices have soared to nearly $190 per hundredweight due to limited beef cattle supplies, compelling dairy farmers to breed cows with beef bulls and sell crossbred calves at premium prices. While this boosts profitability, it produces fewer heifer calves, leading to higher replacement costs and shortages. Market dynamics, driven by prolonged herd liquidation, have dropped beef cow numbers to their lowest point in nearly a decade, while strong consumer demand persists domestically and internationally. This trend bolstered dairy farmers’ asset values, aiding potential farm expansions and impacting the overall dairy economic landscape, with expectations for these conditions to persist over the coming years. https://www.thebullvine.com/beef-on-d...