Effect of Holstein and Beef-Dairy Cross Breed Description on the Sale Price of Feeder and Weaned Calf Lots Sold Through Video Auctions

Objective: Objectives were to determine: 1) value of Holstein feeder steer lots compared with steer lots of other breed descriptions, 2) value of beef-dairy cross weaned steer calves compared with either Holstein weaned calves or weaned calves of other breed descriptions, and 3) value of beef-dairy cross weaned calves compared with weaned calves of other beef breed descriptions sold through video auctions. Study Description: Data on 14,075 feeder steer lots sold in 211 auctions from 2010 through 2018; 763 weaned steer calf lots, and 1,125 weaned steer and heifer calf lots sold via seven auctions in 2020 and 2021 were used. Separate multiple regression models using backwards selection were developed for feeder cattle, weaned steer, and weaned steer and heifer calf lots. The five breed group categories used were English-English crossed, English-Continental crossed, Brahman-influenced, Holstein, and beef-dairy crossed (weaned calves). Results: Breed description of feeder steer, weaned steer calf, and weaned steer and heifer calf lots affected sale price (P < 0.0001). Among weaned steer calves, beef-dairy crossed lots sold for the second lowest (P < 0.05) price ($147.62/cwt), though greater than Holsteins. Among feeder steer lots, Holsteins sold for the lowest (P < 0.05) sale price ($110.56/cwt) compared with all other breed groups. Among weaned steer and heifer calves, beef-dairy crosses sold for less than (P < 0.05; $136.39/cwt) all other breed groups. The Bottom Line: Beef-dairy crosses have improved value prospect compared with Holstein steers in the beef supply chain.


Introduction
Improvements in and greater availability of sex-sorted semen technologies in the beef and dairy industries have been instrumental to the growth in number of beef-dairy cross calves in the beef supply chain today. Some dairy producers use beef semen to mate a portion of their breeding females, creating beef-dairy crosses, in attempt to add value to calves entering the beef supply chain (Scanavez and Mendonça, 2018;Penhorwood, 2019;Berry, 2020).
Bovine semen companies, breed associations, and allied industry stakeholders have and are continuing to work to identify ideal beef bull genetics, management protocols, Kansas State University Agricultural Experiment Station and Cooperative Extension Service and marketing strategies to improve efficiency and profitability of beef-dairy cross calf production. As beef-dairy calf production increases, opportunities to measure beefdairy cross calf value exists. Data available on feeder and weaned calves sold through video auctions enabled evaluation of three distinct but related research questions on dairy feeder steer and beef-dairy cross calf values relative to other breed categories. Questions addressed include: 1) What is the relative value of Holstein feeder steers compared with steers of other breed descriptions? 2) What is the relative value of beefdairy cross weaned steer calves compared with Holstein weaned calves or weaned calves of other breed descriptions? and 3) What is the value of beef-dairy cross weaned calves compared with weaned calves of other beef breed descriptions?

Experimental Procedures
Information describing factors about lots of feeder steers and weaned steer and heifer calf lots sold through a livestock video auction service (Superior Livestock Auction, Fort Worth, TX) was obtained from the auction service in an electronic format. Data were collected for lots of feeder steers sold from 2010 through 2018 and for lots of weaned steer and heifer calves in 2020 and 2021. Units of study were a lot of feeder steers, lot of weaned steer calves, and lot of weaned steer and heifer calves.
Data available on the lots varied with each analysis, but included some combination of the following variables: • AngusLink, Charolais Advantage, Balancer Edge, VitaFerm Raised, Non-Hormone Treated Cattle program, Global Animal Partnership GAP 1 or 4 program, or Certified Natural program Separate multiple-regression models for each analysis to address each of the three posed research questions were developed using a backwards selection procedure to quantify effects of independent factors on the sale price of beef calves. Where appropriate, models were adjusted for the random effect of auction date nested within auction year. The multiple regression models included 16, 22, and 21 variables potentially affecting sale price, respectively, in analysis of relative value of Holstein feeder steers, beef-dairy cross, and Holstein weaned steer calf value, and beef-dairy cross weaned calf (steers and heifers) value research questions. The variable of interest in addressing these research questions was breed description of the lot.
Only lots of feeder steers were included in analyses comparing value of Holsteins to feeder steers of other breed descriptions. By nature of structure of the dairy industry, few, if any Holstein feeder heifer lots are sold via this video auction platform. Additionally, it has only been in recent years that weaned calves marketed via this video auction have been described as "beef-dairy cross" within the lot descriptions for sale, and beefdairy cross calves of both genders were available for sale. Therefore, those comparisons were made in data available from 2020 and 2021 sales that weren't available in earlier years.

Results and Discussion
In addressing the question, "What is the relative value of beef-dairy cross weaned steer calves compared with either Holstein weaned calves or weaned calves of other breed descriptions?", data were analyzed from 763 lots of weaned steer calves sold via seven video auctions through Superior Livestock Auction in 2020 and 2021. Mean weight and number of steer calves in the lots analyzed were 614.9 ± 130.3 lb body weight (BW) and 124.7 ± 75.4 head, respectively. Of the 22 fixed effects, nine were considered significant and included in the final model for lots of weaned steer calves. Breed description of the lot affected (P < 0.05) calf sale price, with English-English cross weaned steer calves having sold for the greatest sale price at $165.18/cwt, while Holstein weaned steer calves sold for the lowest sale price at $113.04/cwt (Table 1). Beef-dairy cross weaned steer calf lots sold for $34.58/cwt more (P < 0.05) than Holstein weaned steer calves.
In addressing the question, "What is the value of beef-dairy cross weaned calves compared with weaned calves of other beef breed descriptions?" data were analyzed from 1,125 lots of weaned steer and heifer calves sold via seven video auctions through Superior Livestock Auction 2020 and 2021. Mean weight and number of steer and heifer calves in lots analyzed were 618.4 ± 98.8 lb BW and 123.4 ± 75.4 head, respectively. Of the 21 fixed effects, 11 were considered significant and included in the final model for lots of weaned steer and heifer calves. Again, breed description of the lot affected (P < 0.05) weaned steer and calf sale price, with Brahman-influenced, English-Continental cross, and English-English cross lots selling for more (P < 0.05) than beef-dairy cross weaned steer and heifer calves (Table 2).  2012 and 2013 to 2015, respectively) was likely partially in response to key events in the beef value chain. In December 2016, a major packer announced a decision to no longer harvest Holstein steers. It has been well documented that Holstein feeder cattle are less feed efficient and have a lower dressing percentage than beef feeder cattle. Perhaps, though, in this time of growth of beef-on-dairy production there is also opportunity for segments of the beef value chain to capitalize on what some may deem as a more consistent and predictable Holstein feeder steer while knowledge gaps about growth performance and carcass quality and consistency of beef-dairy cross cattle are being filled.

Implications
Holstein and beef-dairy cross calves are discounted relative to other beef breed descriptions, though industry stakeholders are continuing to gain insight about performance characteristics of beef-dairy cross animals through all segments of modern beef production. This study, however, also found that lots of beef-dairy cross feeder steers not only had greater value than lots of Holstein steers, but were much closer in value to the traditional beef breed descriptions, likely further driving use of beef semen in dairy females.

Kansas State University Agricultural Experiment Station and Cooperative Extension Service
Brand names appearing in this publication are for product identification purposes only. No endorsement is intended, nor is criticism implied of similar products not mentioned. Persons using such products assume responsibility for their use in accordance with current label directions of the manufacturer. Means within a factor without a common superscript differ (P < 0.05).  Prices without a common superscript differ (P < 0.05) within years. Within each analysis (2010 to 2018, 2010 to 2012, 2013 to 2015, and 2016 to 2018), each multiple regression model was adjusted for the random effect of auction date nested within auction year.