Seismic changes on the American dairy scene in recent years have seen milk now become a by-product of beef production on dairy farms
That was according to US dairy consultant Mike McCully.
Speaking at Dairy Day 2026 in UL, he said: “It is providing good revenue to dairy farms. Week-old dairy-beef calves are now are worth $1,150 to $1,200 apiece. In June, $1,800 to $2,000.
"Dairy farms are making the money off of beef.
"The US dairy herd is at its highest level since 1991, while the beef herd is at its smallest in 70 years.”
Because of this dynamic, he predicted beef price to stay high until at least 2029 and added that some accountants have reported that on some farms all the profit was made off calf and cull cow sales.
Dropped replacements
With farmers using extra beef breeding on their herds, dairy heifer replacements have dropped and they are now holding on to cows longer, resulting in the average age of cows going up to four or five lactations, he said.
The danger with this, he added, was that there is potential for the sector to hit an air pocket and the replacement heifers won’t be there to sustain the herd at the level it is at.
The changes in the dairy landscape in the US aren't just confined to livestock, as he said consumer demand for whey-based proteins has led to cheese becoming a by-product of whey production.
Along with that, the era of dairy herds being established near milk plants was also changing.
“Historically, for decades in the United States, there has been cheap pools of surplus milk. Whether it’s California in the '80s or '90s, Idaho, Texas, Kansas, South Dakota.
"Somewhere, there is always cheap surplus milk that attracted a plant investor, so we had milk-chasing plants. Now we’re seeing plants chasing milk."
