Many farms today use beef or sexed semen to breed for replacement heifers. This is a good option as farmers may be reluctant to buy replacement heifers from outside sources and because replacements are either not available or costly. Producing off the farm creates greater economic value and greater return on investment.

Decision-making process

In an Iowa State University Dairy Extension webinar, Victor Cabrera, professor and extension specialist at the University of Wisconsin-Madison, discussed the decision-making process in determining whether to crossbreed dairy with beef or sexed semen and the impact it has on the dairy industry. Cabrera explained first analyzing the economic outcomes of alternative breeding strategies such as beef, sexed, or conventional semen. After doing so, replacement needs must be determined by completing a short-term and long-term analysis. Short-term analysis helps identify the income of calves compared to semen cost, while long-term analysis calculates the animal’s life cycle.

Cabrera highlighted the opportunity for viability in the market, prices, and net return on animals. “Farmers are always looking for new opportunities to make a dollar in the industry,” said Cabrera, “and one way is using beef semen to produce crossbred cows resulting in faster genetic improvement.” The use of both sexed and beef semen has been linked to higher quality genetics. Cabrera emphasized this as a profitable strategy. Excessive use of beef semen may become an issue due to limited availability of replacements, Cabrera warned.

Online tools

The extension specialist recommended using a website for determining farm replacement needs such as DairyMGT.info. The financial section of the website includes a dairy herd and cash flow simulation. By putting in the farm’s conditions, it calculates the farm’s replacement needs and requirements in order to stay stable. “I encourage you to play with this tool,” said Cabrera, “you can figure out your herd demographics and how to manage it.” This simulation can help project how many heifers, cows, and calves you need at different ages.

The website also has a reproduction section, which calculates semen costs and calves produced. “This tool calculates income from calves over semen costs and the calf’s balance,” said Cabrera. He explained that the number calculated is found by taking the number produced minus the number required, which gives the number per month. This simulation is extremely helpful in calculating the trade-off in every decision, Cabrera noted.

Future projection

Cabrera projects cattle prices to continue to rise for the next 10 years. “Crossbred dairy animals are going up and even though it will decrease around 2028, they will be higher than they are now,” he said. The extension specialist is confident that the opportunity to continue crossbreeding will permanently hold strong given the greater economic return. Furthermore, he is a firm believer that all levels of use of beef and sexed semen will have net return. Farmers are encouraged to utilize DairyMGT.info and its resources.