In Canada, the production of beef is evolving as the dairy industry plays a larger role in supplying beef-type animals. Cattle born from dairy cows bred with beef genetics—sometimes called “beef-on-dairy”—now represent a meaningful share of the nation’s beef supply. A decade ago these crossbred calves accounted for roughly two per cent of the total. By 2024 that figure had grown to more than nine per cent, reflecting both increased adoption of beef genetics and a shrinking conventional beef herd.

The shift is rooted in advances on dairy farms. The use of improved breeding technologies, including sexed semen and genomic selection, has made it far easier for dairy producers to decide whether a cow produces a replacement heifer or a calf destined for the beef chain. With fewer surplus dairy females to raise for milk, many mid-tier cows are now bred with beef sires to produce calves that will ultimately enter feedlots rather than the milking herd.

While the overall dairy-cow cull rate has remained relatively stable, the addition of beef-genetic calves has introduced a new dimension to the beef supply. The volume of beef production in Canada rose between 2015 and 2022 but has since tightened. The higher average carcass weights of fed cattle have helped cushion the drop in slaughter numbers. The dairy sector contributes beef primarily through two routes: culled dairy cows and calves born for beef finishing. It is the latter that is growing in importance.

One key question looms: what happens if demand for milk increases significantly? If dairy producers need more milking cows, they may breed more animals for replacements rather than for beef. That would reduce the number of calves being diverted into the beef chain and could lead to a short-term dip in beef supply. Modeling suggests that in such a scenario, the beef-on-dairy share might fall by around 35 per cent relative to baseline in the immediate period, and the total beef supply could shrink by about three per cent, all things being equal. Over the longer term the dairy herd could grow, and beef-on-dairy numbers could recover.

From a market perspective the growing pool of beef-on-dairy calves offers advantages. Feedlot operators and packers benefit from a more predictable, year-round supply of animals with beef-type genetics. That helps smooth operations and may support processing efficiencies. But the trend also raises risk: if milk producers shift gears rapidly, the beef supply chain could confront a new supply squeeze and upward pressure on beef prices.

In short, the blending of dairy and beef genetics in Canadian herds is reshaping the livestock landscape. The phenomenon reflects deeper shifts in breeding practices, production strategies, and market linkages between dairy and beef sectors. As producers adjust to changing technology and demand dynamics, this crossover is becoming an increasingly significant part of the nation’s beef supply story.