A Gippsland farm believes beef from dairy has the potential to match the quality genetics of conventional beef in the next decade.
Narelle and Mark McDonald, Dujoc, Valencia Creek, who have run a successful beef on dairy operation complemented by regenerative practices for more than 10 years were visiting Farm World at Lardiner Park on Friday to talk about their operations.
Mark said he wanted to move towards an ease of calving type of operation and achieved that by crossing their Friesian dairy cows with lighter Wagyu bulls.
"We use a lot of North American genetics which are large type, big, hard calving, and on the Wagyu side of things there is a definite ease of calving," he said.
"Getting a calf on the ground, your heifers are in better shape, and you evaluate with the beef side at market."
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The couple undergoes a multi-species pasture renovation program to restore the soil quality on their recently purchased farm, to enhance their business for the long term.
Narelle said there were significant benefits to selling their beef this way,
"Well there is certainly extra income from those Wagyu calves and get paid 40 per cent above the ECYI, as opposed to the average if it was a bobby calf, which are on average $35," she said.
"So we're value adding that way and just getting away from that whole Bobby calf market," she said.
Mark added that it was also aimed to "diversify a little bit out of milk".
The use of genomic testing has helped to identify the top dairy cows to breed with sexed semen.
The first generation female calves were reared as part of the dairy herd, and the remaining males calves are reared on farm and sold into the beef market.
Narelle said they started genomic testing on their dairy herd four years ago.
"We breed sex semen into the top 25pc of our herd, which contain higher fertility, and you increase your genetic gain on your Holstein quicker," she said.
"We then can use AI with your Wagyu straws, and then place 'mop-up' bulls with the herd" Mark said.
The couple said their philosophy comes from regenerative farming which reduces the use of sprays and fertilisers.
Mark said it also reduced the need to sell bobby calves, which was something the dairy industry needed to move away from.
"From a social point of view, too, we've got to get away from bobby calves, and beef on dairy gives us that opportunity," he said
"[Selling bobby calves] is not a good image for our industry, and we've got to be better than that."
"No one likes selling five-day old calves as bobby calves." Narelle said.
Commonwealth Bank regional executive manager Central East Gippsland Kate Wallis chaired a breakfast panel discussing on the opportunities that beef on dairy presented at Farm World on Friday .
She said the drive for agribusinesses to diversify was driving the growing beef on dairy market in Australia.
"There is a lot of interest in the [beef on dairy] space because it has grown so astronomically in the US, Canada and Europe," she said.
"We're starting to see that come into Australia, and I think one of the key things is the lessons learnt... is if we can take some of the implementation that they've had and then just improve upon in Australia, that'll be really exciting."
Global marketing manger at Canadian genetic solution market company Semtex Brad Gilchrist spoke at a breakfast panel held at Farm World, dedicated to the opportunities that beef on dairy presented.
He said it was important for genetic progression to look at data for beef on dairy programs and make decisions to drive the Australian market.
"I think the unique opportunity here in Australia to really be a global leader as far as putting a supply chain together, is really the the workings of it, and by that I mean we've got other parts of the world is separate entities working together, but they're still very much separate entities," he said.
"One thing that has shown us through those separate entities, though, is that it's really important that we do look at the genetic value all the way through, and not only the genetic value today, but the progression of those genetics."
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