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Animal Health, Animal Health, Farming operations

Dairy beef: a growing market for Australian farmers

February 21, 2025

By Ben Bennett, President, Australian Dairy Farmers

The Australian dairy industry stands to gain more than $550 million per year at a conservative estimate, thanks to a promising growth opportunity being pursued by industry leaders.

That opportunity comes from increased profit and yield through developing the dairy beef industry and expanding into premium markets.

It was the hot topic at Australian Dairy Farmers’ (ADF) recent industry breakfast at International Dairy Week (IDW), where Professor Jane Quinn from Charles Sturt University and Dairy Australia’s Andy Hancock shared their insights.

They proved surplus dairy calves are no longer an issue to be managed, but an asset with substantial economic potential.

For too long, male dairy calves have been undervalued, often sold at low prices as vealers.

However, the CalfWays Sustainable Dairy Calf Management Roadmap aims to change this by facilitating the development of opportunities for Australia’s surplus calves to enter commercial supply chains by 2035.

The shift is already happening, and with the right structures in place, dairy beef has the potential to significantly enhance farm profitability.

Rising international demand

One of the most compelling opportunities for Australian dairy beef lies in export demand from the United States, where dairy-sourced beef plays a crucial role in the production of ground beef and burger patties.

The US beef industry relies on lean beef trim from dairy cattle to mix with fattier cuts, producing a high-quality, consistent product for food service and retail markets.

Currently, Australia exports a significant volume of lean beef to the US, but much of it comes from grass-fed cattle.

With dairy beef offering similar lean characteristics and a predictable supply chain, there is a clear opportunity for Australian dairy farmers to tap into the well-established US demand for ground beef.

The US market has already embraced vertically integrated dairy beef supply chains, processing around 90,000 calves per year under structured feeding and finishing programs.

New Zealand also exports significant quantities of dairy cattle for beef consumption to the US.

These systems provide farmers with stable pricing and a guaranteed market – a model that Australia can replicate to secure long-term demand.

Strong margins, viability

The financial potential of dairy beef is large.

Research presented by Professor Quinn at IDW shows that integrating surplus dairy calves into beef production has the potential to deliver $550 million per year through increased profit and yield.

Currently, many surplus calves are sold at around $35 per head as vealers, but with proper finishing, they can be grown out to reach carcass weights of 300 kilograms or more, with market values ranging between $1500 and $1800 per head.

The numbers clearly illustrate that dairy beef is not just an ethical solution – it’s an economically viable one.

A key factor in this shift is the Meat Standards Australia (MSA) grading system, which has shown that well-finished Holstein and Jersey cattle can produce beef of comparable eating quality to traditional beef breeds.

Consumer sensory trials show that dairy beef, when raised with the right nutrition and growth pathways, performs well in terms of tenderness, juiciness, and flavour, making it a valuable addition to the beef supply chain.

At IDW, Professor Quinn said trials conducted in western Victoria and the Riverina had proved that Holstein cattle can achieve growth rates and carcass characteristics on par with traditional beef breeds when finished in feedlots.

This means that with the right investment in breeding, feeding, and processing, dairy beef can meet both domestic and export market standards.

Building the supply chain

To capitalise on this opportunity, a coordinated effort is needed across the supply chain.

Programs like CalfWays, which has engaged over 150 stakeholders including dairy and beef processors, Meat and Livestock Australia (MLA), and major retailers, are helping to build stronger connections between producers and buyers.

The long-term goal is to develop a structured, profitable dairy beef industry that provides stability for farmers while addressing broader sustainability and animal welfare concerns.

Lessons from international markets, particularly the vertically integrated model from the US, show that with the right partnerships and investment, dairy beef can become a valuable and predictable revenue stream for Australian farmers.

The future is dairy beef

The dairy beef industry is at a turning point. Demand is growing, margins are strong, and global markets – particularly in the US – are actively seeking supply.

This is no longer a theoretical discussion; dairy beef is already proving to be a workable and profitable possibility for farmers willing to invest in structured growth programs.

At IDW breakfast it was clear: the future of dairy beef in Australia is bright.

By treating surplus calves as a business opportunity rather than a byproduct, farmers can unlock significant value, increase resilience, and contribute to a more sustainable and profitable dairy industry.

Now is the time to act. With the right partnerships, market connections, and investment in quality production, Australian dairy farmers can take full advantage of this growing sector.

 

Animal Health, Biosecurity, Farming operations

Policy shifts on live viruses importation

May 15, 2022

By DAVID INALL, ADF CEO

Lumpy skin disease (LSD) virus, identified in March in Indonesia – and Singapore shortly thereafter – is posing a threat to Australian livestock. The proximity of these nations to Australia means the disease could be transferred to Australian cattle or buffalo via windborne biting insects. Currently, the virus is only around 3,000 kilometres from Australia. Once introduced, the virus is very hard to eradicate.

Australia has restricted the importation of certain live viruses for laboratory purposes, primarily to reduce the possibility for such diseases to escape and spread. However, an exception is being made so that CSIRO’s Australian Centre for Disease Preparedness, Geelong, can begin developing vaccines for lumpy skin disease.

Australian Dairy Farmers (ADF) supports the development of safe, effective vaccines for lumpy skin disease virus, in acknowledgement of the significant risk this disease poses to the industry.

The virus does not affect humans – but has serious implications for animal health. It causes emaciation, damage to hides, a decrease in milk production, fever, reproductive losses and can ultimately be fatal. This can lead to major disruptions to livestock trade and dairy supply. There would also be trade implications for Australian exports if Australia was to suffer a lumpy skin disease detection.

The disease, identifiable by nodules on animal skin, is usually spread by flies, mosquitoes, and ticks. Infected animals can also contaminate products and equipment.

The federal government is working with its counterparts in Indonesia to stem the outbreak and prevent the disease from making its way to Australia. Current prevention efforts are extensive, with strict import regulations and conditions to prevent the disease entering via traveller, cargo and mail pathways. However, the risk of spreading via insects crossing the ocean is Australia’s primary concern.

Without local research, Australia would have to rely on sending samples overseas for diagnosis and, if confirmed, importing vaccines. These can be of inferior quality to Australian standards and obtaining adequate quantities could be a challenge. With Australia undertaking development, vaccine supply will not be an issue for Australian farmers. Once developed, the vaccine will also be shared with neighbouring nations.

Livestock industries as well as the Australian Governmentsupport importation of the live virus. Internal policies have been amended to ensure safety and security. This approach is being echoed across other parts of the industry.

A taskforce has been set up by Agriculture Minister David Littleproud. The group, led by Dr Chris Parker – former chief executive of the Australian Pests and Veterinary Medicines Authority – will coordinate the federal government’s newly-announced $61 million commitment to boosting northern frontline biosecurity.

Vaccine development within Australia is crucial to preventing major outbreaks and eventually eradicating the disease, if possible. Most vaccines currently available from overseas have shown capacity to cross with wild strains of the virus, producing virulent variants that transmit more rapidly.

With such a significant exotic disease on Australia’s doorstep, we must remain vigilant, and farmers are always urged to contact their local veterinarian if they see any signs in their herd, In the case of LSD, after an initial period of high fever (41°C) and swollen lymph glands, the animal may develop large, firm nodules that are up to 5 cm in diameter in the skin..

An important element of the industry’s response has seen ADF partnering with the Red Meat Advisory Council (RMAC) to form a high-level cross-industry taskforce to ensure coordination and collaboration across all affected industry sectors. The taskforce is comprised of senior representatives of RMAC, ADF, the National Farmers’ Federation, and the relevant industry service providers.

 

The taskforce’s membership ensures we can seek the requisite skills to undertake appropriate action and establish technical committees as determined by the taskforce to ensure the broader agriculture sector can monitor, manage and work with government to reduce the likelihood and potential impact of any incursion.

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