Paul Beck, OSU Cooperative Extension Beef Cattle Nutrition Specialist
The rapid growth of beef × dairy crossbreeding is reshaping feeder cattle supplies across the country. As dairy producers increasingly breed dairy cows to beef sires to capture added value on non-replacement calves, more dairy × beef crossbred steers are entering Oklahoma feedlots. That trend raises an important question: how do these dairy crossbreds compare economically with beef steers in our traditional yearling systems?
A collaborative study conducted by Oklahoma State University’s Departments of Animal and Food Sciences and Agricultural Economics (Grote et al., Journal of Agricultural and Applied Economics https://doi.org/10.1017/aae.2026.10035) evaluated profitability of beef steers and dairy crossbred steers in both calf-fed and yearling-fed finishing systems at a commercial feedlot in Buffalo, Oklahoma. Calf-fed steers were placed on feed following dry lot backgrounding, while yearlings grazed summer pasture at the OSU Marvin Klemme Range Research Station before feedlot entry.
Performance differed by both breed type and system. Beef steers gained faster than dairy crossbred calves during grazing. However, during finishing, yearling-fed cattle outperformed calf-fed cattle regardless of breed. Dairy crossbred yearlings posted the highest average daily gain in the feedlot and exhibited compensatory gain that more than offset prior weight differences relative to beef steers. Calf-fed beef and dairy crossbred steers had the lowest gains. While yearlings consumed more feed, feed efficiency was similar among treatments. Carcass data favored dairy crossbred steers, which produced fewer Select and more upper Choice and Prime carcasses.
Despite carcass value advantages, total cost of production ultimately determined profitability. Yearling-fed beef steers generated the highest net return—nearly $485 per head—and the lowest cost of production, with $112/steer greater net returns than yearling fed dairy crossbred steers and $126 greater net returns than calf-fed beef or dairy cross steers.
When grazing resources are available, yearling systems reduce cost of gain and improve profitability, which is a hallmark of production systems in Oklahoma. Dairy crossbred steers can compete economically—particularly under current grid structures that heavily discount straight dairy cattle but apply only modest discounts to beef × dairy crosses. However, for retained ownership through stocker and finishing phases under conditions similar to this analysis, beef × dairy steers should be purchased at approximately a $20/cwt discount relative to native beef steers.
This research was supported by the USDA Critical Agricultural Research and Extension (CARE) Award No. 2022-68008-37102 and provides practical guidance for producers evaluating dairy-beef crossbreds within Oklahoma production systems.
