Beef on Dairy

U.S. Bovine Semen Slipped 4% in 2025, Exports Hit Record $327M

Tue, 17 Mar 2026 19:06:23 GMT

Even with a major export market disappearing early in the year, the U.S. bovine genetics industry proved its resilience in 2025.

New data from the National Association of Animal Breeders (NAAB) , which represents roughly 95% of the U.S. artificial insemination industry, shows total semen sales slipped about 4% in 2025 to just under 66 million units - a decline of 2.9 million compared with 2024, effectively giving back last year’s modest gain. However, the industry offset much of that loss through stronger beef demand, expanded export markets and continued shifts in dairy breeding strategies.

China Closes Doors, Global Markets Evolve

In February 2025, U.S. bovine semen exports to China came to an abrupt standstill after Chinese authorities halted the issuance of required veterinary health certificates, cutting off one of the industry’s key export channels. The disruption stemmed from regulatory and trade tensions, not animal health concerns. Without the certificates, U.S. exporters had to redirect product to other markets.

“While dairy unit exports were down due to the closure of the China market, exports to other countries increased, which significantly reduced the impact of the closure,” says Jay Weiker, president of NAAB.

Even with China offline, robust interest from Europe, Brazil, North Africa and South Asia helped steady the export picture.

“The industry not only stabilized but continued to advance by strengthening long-standing markets and opening new ones,” says NAAB international program director Sophie Eaglen.

The closure of China also reshaped the list of top semen buyers by value. In 2025, the United Kingdom led the rankings, followed by Italy and Mexico. Brazil led in total units imported, followed by Mexico and Russia. Overall, 46 markets imported over $1 million in U.S. semen, accounting for 94% of export units and 95% of export value.

A Down Year for Dairy

The U.S. dairy semen market experienced a substantial decline in 2025, reflecting ongoing shifts in breeding strategies and global market pressures. Total dairy unit sales, including domestic, export and custom-collected units, fell 6% compared to 2024, a loss of roughly 3 million units, bringing the total to 45.8 million.

Despite the overall decline, domestic use showed a slight rebound, increasing 2% to 16.5 million units, or nearly 367,000 additional units. Sexed semen continued to dominate U.S. herds, rising 6% to 10.6 million units and now accounting for 64% of all dairy semen used domestically. Conventional dairy semen declined by 280,000 units, highlighting the continued trend toward precision breeding and genomic selection.

Exports for dairy semen totaled 28.3 million units, down about 2.5 million from 2024. The early-year closure of the China market contributed to the drop, but exports to other countries, particularly across Europe, Brazil, North Africa and South Asia, helped offset much of the lost volume. NAAB says strong international demand for replacement heifers continues to create opportunities for U.S. dairy producers.

Beef Semen Sees a Bump

The beef segment saw modest growth in 2025, reversing a multi-year decline. Total beef semen sales increased by 1%, or roughly 122,000 units, to reach 20.2 million units. Domestic use accounted for most of that growth, with beef units sold into beef herds rising 7% for the second consecutive year. In total, 9.8 million beef units were used domestically, with 8.1 million going into dairy herds and 1.7 million used in traditional beef herds.

Heterospermic beef semen, which combines genetics from multiple sires in a single straw, remains a significant portion of the market, though it declined from its 2024 peak of 2.8 million units to just over 2 million in 2025. Domestically, heterospermic units represented 2 million of the total, with 400,000 units exported. Angus remains the dominant beef breed, followed by crossbreeds and heterospermic products.

Export demand for beef genetics also continues to expand. Total beef semen exports grew 13% to 5.5 million units, underscoring the global appetite for U.S. genetics even as total semen unit exports declined overall.

Beef-on-Dairy Genetics Hold Steady

Beef-on-dairy genetics have become an increasingly important strategy for U.S. dairy producers, and 2025 was no exception. Domestic use remained steady at 8.1 million units, while exports of beef-on-dairy semen grew 13%, adding approximately 279,000 units.

This segment is fueled by genomic selection strategies that allow dairy producers to produce replacement heifers from their best animals while using beef sires on the remainder of the herd to create high-value F1 calves for feedlots. Adoption is also growing internationally, with rising demand for F1 calves and crossbred genetics, reinforcing the role of U.S. dairy producers in meeting both domestic and global needs.

Adaptive Trends and Future Opportunities

Despite the year’s unit declines, the industry is adjusting and finding its footing as global demand shifts and new breeding tools and market opportunities come along.

“Trends in semen usage reflect producers’ efforts to improve genetic outcomes and economic returns in an evolving marketplace,” Weiker says. “NAAB members should be complimented for their commitment to developing new markets and increasing market share in strategically important markets. There are many positives that can be gleaned from the 2025 results.”

With export value at record levels and beef-on-dairy strategies growing, the industry appears positioned for continued adaptation and progress in years ahead.

Tightest Cattle Supply Predicted in The Next 60 to 90 Days

Fri, 23 Jan 2026 17:56:32 GMT

While fundamentals continue to drive the cattle market, increasing prevalence of external factors can play havoc day-to-day.

Based on placements the past six months, Brad Kooima of Kooima Kooima Varilek believes the tightest supply of this entire cattle cycle will occur in the next 60 to 90 days. It wouldn’t be the first-time the market makes a high in February or March.

“Now beyond that, I don’t see there’s a tremendous chance to have an oversupply of cattle going into the summer,” he adds. “However, you’ve got things like the Mexican border that are coming into play. So, I’m trying to react to what I see, but the fundamentals aren’t going to change.”

Here are seven other takeaways from Kooima’s recent conversation with Chip Flory on AgriTalk:

1. Fundamentals Still Drive The Cattle Market.

“I wish we could just talk about cattle fundamentals,” he says. “I’m still an old-school fundamentalist who believes a lot in trying to figure out where we’re at with supply and how we’re getting along with the boxes and beef demand.”

Rumors and misguided comments, such as the New World screwworm (NWS) scare a week ago and geopolitical factors this past Tuesday, can cause the markets to react.

“Now, is it only supply? Of course not,” Kooima says, regarding what drives the markets. “But if I had to start there, barring more of this outside, new stuff we’ve been inundated with, I think the market still generally driving the deal. We don’t have enough cattle, and that’s why they’re cutting kill. That’s why they’re closing plants. There’s not enough to go around.”

2. Heifer Retention Exists But Isn’t a Major Market Factor.

Kooima says heifer retention has started but is insufficient to significantly change the supply trajectory.

“It’s not like 2015 when we flipped a switch and the whole world decided to save them at one time, but it’s there,” he says.

He’s predicting a 1% to 2% increase, saying the retention is regional — referring to the Dakotas, Montana and Colorado.

“What’s driving it is economics,” Kooima says. Some ranchers can’t afford to not sell their heifer calves, while other factors include the age of the rancher, no desire to deal with first-calf heifers and drought.

When asked if there is enough heifer retention to move the needle to bring some relief on the supply side, Kooima responds: “The short answer would be no. We’re never going to have a cow herd like we had 10 years ago. We’re going to have to figure out how to do with less.”

He says the strategy to increase supply is feeding to heavier weights and the growth in beef-on-dairy.

“The gorilla in the room, to me, is beef-on-dairy,” he says. “From a couple of standpoints, just from a raw supply standpoint, the dairy cow herd’s the biggest since 1993. It’s grown and grown, and why wouldn’t you if you can get $1,200 to $1,500 for a day-old calf?”

3. Mexico Has Built Feeding and Processing Infrastructure in Response to Border Closure.

Kooima says with the U.S.-Mexico border closed due to NWS, Mexico has figured out how to finish and process cattle.

“I think there’s a lot of people there who don’t want anything to happen,” he says, regarding reopening the border. “They’re benefiting from this great big bull market and now they’re selling the beef to us. So, it may never exactly be the way it was again. They waited too long on this matter, in my opinion. It’s not a market factor.”

4. Beef-on-Dairy and Vertical Integration Are Rising Concerns.

Kooima shares his concern about the long-term implications of vertical integration and the consequences of the growing beef-on-dairy supply.

“For the first time, you got an integrator that has the ability to control that thing from its birthday and schedule it out 341 days later to slaughter,” he explains. “A dream that the packers chase. I watched them wreck the hog market. I see what happened in poultry. This scares me to death. The combination of all of that is we’re losing price discovery. They’re going to try to slow it down as much as they can until they can control the supply.”

5. Packers Are Adapting to the Market.

Kooima says the closing of Tyson’s Lexington plant and shift reduction at its Amarillo plant are examples of the broad industry trend to reduce harvest rates and shutter facilities when supplies tighten. He explains the closing will result in even less negotiated trade. The Lexington plant primarily did formula (non-negotiated) pricing, and he predicts those formula customers will now go to Tyson’s Dakota City plant.

“Dakota City, a plant that’s closest to me, 64 miles away, is likely going to become a formula plant. It’s going to further deteriorate price discovery up in this neck of the woods,” he stresses.

He adds packers are also using tight supplies as an opportunity to perform necessary cooler clean-out cycles and reduce the number of harvest days per week.

“They’re systematically reducing kill to try to gain some leverage back,” Kooima says.

When it comes to regional packers, he hopes they can survive: “I think they’re critical to price discovery.”

6. Demand for Beef Remains Strong.

Kooima is bullish about beef demand, especially amid supply tightness.

“When people say demand is pretty good, I go ‘No, it is phenomenal,’” he says. “The demand for grind is crazy. We have to make sure we can continue to fuel that rocket.”

7. Risk Management is Essential Amid Market Uncertainty.

On protecting against risk, Kooima advises: “My mantra is and has been for a year and a half to buy some puts. You’re going to have to buy puts to keep you in business. Let’s not let 2015 happen to us again.”

He goes on to add: “Do I think that there’s a high-risk point here in the short term? No, obviously, I just said I think we’ve got the tightest numbers ever, but there’s always something that can go wrong, so be careful.”

Listen to Kooima’s and Flory’s AgriTalk conversation here:

Your Next Read — Shrinking Slaughter Capacity: What’s Next in 2026?

An Incredible Bird's-Eye Look at the State of the Dairy Industry

Mon, 19 May 2025 14:15:39 GMT

Editor’s Note: This is one article in a series that is included in the 2025 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
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The dairy industry is undergoing rapid transformation and innovation at an unprecedented pace. As part of its ongoing efforts to understand these shifts, Farm Journal recently conducted a comprehensive survey involving 400 dairy producers across the U.S.

These producers, representing herds ranging from 100 to 20,000 cows, provided valuable insights into their current operations and future outlooks.

Technology Integration

In an era where technology permeates nearly every aspect of life, the dairy industry stands at the forefront of this transformative wave. The integration of technology is no longer just an option; it has become a crucial step toward creating a more efficient and sustainable dairy industry. From feeding systems to health monitoring devices, technology helps dairy farmers optimize operations and ensure animal welfare.

A recent survey highlights a significant shift in the adoption of technology within the dairy sector. Remarkably, two-thirds of dairies now use at least one form of feeding technology. These innovations are designed to streamline the feeding process, providing precise nutrient delivery to livestock and reducing waste. The result is a noticeable improvement in both efficiency and sustainability.

Diversifying Revenue Streams

In today’s changing economic landscape, many dairy producers are finding innovative ways to sustain and grow their businesses. The key to survival during these turbulent times seems to be diversification.

Farm Journal’s recent survey reveals approximately one-quarter of dairy producers have embraced alternative land or dairy add-on revenue streams. This shift underscores the industry’s agility and adaptability as producers look for various avenues to boost profitability.

One strategy gaining traction is the beef-on-dairy operation. An impressive three-quarters of operators are now involved in at least one beef-on-dairy practice, with breeding and raising being the most common methods. Though there has been a decline in the number of producers raising animals under their beef-on-dairy operations over the past year, there is a notable increase in the sale of branded beef products. This shift highlights the evolving dynamics within the industry as producers adapt to market demands.

Next-Gen Transfers

A significant concern facing the industry today is the impending wave of retirements among dairy operators, many of whom have not established formal succession plans. This situation is becoming increasingly urgent, with surveys indicating that a quarter of these operators intend to retire within the next five years.

Contrary to the retirement trend, there is also a strong movement toward growth and expansion within the industry. Almost half of the operators express a desire to expand their operations in the near future. Such ambition suggests confidence in the industry’s potential and reflects a proactive approach to ensuring a sustainable future. At the same time, an equivalent number of operators are planning to maintain their current herd sizes, indicating a focus on maximizing efficiency and resource management.

Sustainability Program Awareness

Farm Journal’s recent survey reveals an array of insights regarding current sustainability practices and the prevailing awareness surrounding them. While the inclination toward adopting sustainable practices is reassuring, a deficiency in program awareness raises concerns that need to be addressed.

Encouragingly, over half of survey respondents (63%) reported participating in at least one sustainable practice. This trend is indicative of a growing societal shift toward environmental responsibility. Interestingly, larger operations, particularly those with substantial herd sizes and extensive acreage, tend to embrace sustainability more comprehensively. This trend is most pronounced in the Western region.

Reality of Workforce Shortages

A recent survey highlights the growing dependency of the dairy industry on non-family labor. For many respondents, non-family members consist of at least 50% of their workforce. This shift is indicative of broader changes within the industry as traditional family-run farms adapt to meet growing demands. However, hiring and retaining workers continues to be significant challenges. With evolving labor-related aspects indicating enduring challenges, the industry must explore viable solutions to continue thriving.

Despite the adoption of new technologies, the challenges of hiring and retaining a reliable workforce remain. Farmers must continue to balance the integration of technology with human labor, ensuring that both aspects work in harmony to drive growth and productivity. These changes suggest a long-term shift in how labor is approached, maintaining traditional farming values while embracing modern advancements.

Optimistic Horizon

The dairy sector is witnessing renewed confidence, energized by innovative strategies and fueled by a younger generation of forward-thinking dairy operators ready to embrace change. Their willingness to adopt advanced technologies and improved herd management techniques is reshaping the landscape of dairy farming. By integrating strategic solutions, these operators are setting a new standard that promises to uplift the entire industry.

According to surveys, 44% of producers plan to expand their operations in the next five years. This drive to scale indicates a strong belief in the trajectory of the dairy industry and its ability to thrive amid changing global dynamics.

The 2025 Farm Journal State of the Dairy Industry Report is available for download here .

A Big Future for Texas Dairy

Fri, 03 May 2024 20:42:21 GMT

Head to the Lone Star State, and everything is bigger, or so they say. That doesn’t only refer to big hats and big hair, it also applies to dairies, as the average size in the Panhandle hovers around 4,000 cows.

Beyond cow numbers, the theme of growth is consistent, although for some operations that doesn’t necessarily equal milking more cows. Many producers plan to increase cow numbers, while some share growth revolves around efficiencies.

The growth Texas has seen in the past two decades in terms of milk production is noticeable. Jennifer Spencer, AgriLife Extension dairy specialist and assistant professor in the Texas A&M Department of Animal Science, says Texas produced 1.65 billion pounds in 2023.

According to Juan Piñeiro, assistant professor and Extension dairy specialist with Texas A&M AgriLife Research and Extension Center, the Lone Star State will continue to increase cow numbers and milk production, especially in the Panhandle, over the next five years.

“When business is good, dairies continue to expand,” Piñeiro says. That’s why we have seen an increased rate of consolidation in the dairy industry, especially in the past 15 years in the U.S.

70% of Cows Live on 5% of Dairies

Net profits tend to be lower in smaller herds, Piñeiro points out, which is why 70% of the cows in the U.S. live on 5% of the dairies.

“This certainly holds true in Texas,” he says. “This statistic will continue to grow.”

But to grow, processing plants must also expand. With more than $7 billion in planned processing investments in the pipeline, including in states such as Texas, growth
is promising.

Spencer says four processing facilities are just opening or under construction in the state, which could increase demand for Texas milk:

Cacique Foods, a cheese plant, opened in May in Amarillo.
Great Lakes Cheese Plant in Abilene is scheduled to be completed in late 2024.
A milk processing plant in San Antonio to support H-E-B is under construction and scheduled to be completed in summer 2025.
Phase 1 of a Lubbock-based Leprino Foods cheese plant is scheduled to be completed in early 2026.

Piñeiro says it is difficult to predict what the future of Texas dairy will be with all the challenges facing dairies today.

“Although I do think there is room for growth in Texas with all the upcoming processing plants,” Piñeiro says, adding he believes most of the milk to fill the upcoming processing plant needs in the state will come from Texas dairy producers, but some might come from neighboring states such as southwestern Kansas or eastern New Mexico.

Labor Costs Eat into Profits

With oil industries, among others, competing for labor, finding workers is also a challenge for Texas dairy producers. This has led some to incorporate technologies and automation to reduce labor needs.

Although Tom Alger, one of the owners of A-Tex Dairy in Friona, Texas, says his dairy has fared well with labor. He says their challenge with labor has been the overall costs it takes to pay for workers.

“That’s inflation, though,” he says.

Originally from Chino, Calif., Alger and his family moved to Friona in 2007. The family decided to move east after the southern California dairy they rented was sold. Alger and his brother Ray went into partnership together and built a 3,200-cow dairy in the Texas Panhandle to provide an opportunity for the future generation to dairy.

“We have a larger dairy than I ever dreamed of,” Alger says, adding that the operation is in the process of slowly purchasing his brother out.

With God’s blessing, he says dairying has been mostly successful for them. They now milk 5,300 cows and continue to look at how to improve efficiencies to sustain the family dairy operation.

“We’ve gotten a little bigger in terms of cows and land, and we will see where the next generation goes,” Alger says, adding that they currently farm with his son Derek and his nephew Jeff.

Water Scarcity Presents a Hurdle

While Texas has more than doubled its cow numbers in two decades, the biggest challenge to push the needle and continue the steady growth curve is water scarcity. Piñeiro says this is the largest hurdle facing producers in the state.

“The Panhandle is a semi-desert, with roughly 12" to 18" of precipitation a year,” he says. “Improving water efficiency with the use of new irrigation technologies, drought-tolerant crops, hydroponic systems and management practices considering soil health, among other strategies, will be key in the future.”

Water was an issue when Alger moved to Friona in 2007, but now he says it’s a major challenge.

“The wells’ average flow rate is 400 gal. per minute, and today they might get 150 to 200 per minute,” he explains. “I’ve got some wells holding, while others are dropping quickly.”

They have plenty of water for the cows, but when it comes to the feed side of the equation, Alger says that is another story.

“It’s obviously a concern every year,” he says. “We look at what water we have available before we make the decision what crop go into the ground.”

Combating water issues, A-Tex Dairy grows fewer acres of corn and more drought-resistant crops, such as sorghum or wheat.

“Double cropping is not an option anymore,” he notes.

They own 3,500 acres and rotate crops to help feed their cattle. He says they’ll likely allocate 900 acres for corn silage this year.

Factor in limited rainfall, especially if you look at the past two summers in the High Plains area, and it is no surprise water is a main concern for its producers. A-Tex Dairy works with neighboring farms to purchase additional feed, and Alger believes they are well positioned for their 2025 feed supply. In addition, the dairy feeds a lot of gluten and distiller grain, along with some cottonseed.

Beef-on-Dairy is a Blessing

One area that has been a blessing for A-Tex Dairy is beef-on-dairy calves. The family started dabbling in this alternative profit source seven years ago, and for the past four years, the majority of their cows have been bred to sexed semen or Angus.

“We have very few Holstein bull calves,” Alger says.

They retain the beef-on-dairy calves at different weights.

“We sell some at 450 lb., some at 750 lb., and we retain ownership on some all the way down to the kill floor,” he adds.

Strong beef-on-dairy prices have helped keep the dairy in the black for the past couple of years.

“Milk certainly hasn’t done that,” Alger notes. “Right now, beef-on-dairy has been by far the most profitable for our operation.”

Looking to the future, Alger says they plan to start hedging prices for their beef-on-dairy calves.

“We need some protection because they are worth too much right now not to protect the high prices,” he says.

Another profit opportunity A-Tex is looking into is carbon. Alger admits they have had a couple of offers, but being a drylot facility, the offers aren’t as enticing as some of the modern dairy facilities.

“We are still exploring our options,” he notes. “I know there are opportunities out there. We are generally not the first to jump on something but typically not last either.”

This holds true with investing in technology, as Alger says they, of course, expect a return on investment when incorporating any technology into their dairy.

“Our focus is improving efficiencies,” Derek Alger explains. “We utilize EID tags and FeedWatch and are looking to incorporating a monitoring system.”

Producers have taken a hard hit with falling milk prices in 2023. Spencer says the uniform milk price fell from $23.68 per cwt in 2022 to $18.98 per cwt in 2023. The price of cheese averaged about $2 per cwt below both of those.

At the end of the day, Alger thinks dairy is still a good industry to be part of and says he believes, at this point, 2024 will be a decent year, especially considering feed prices are significantly lower than last year.

While there are several dairies in Texas that are positioned to grow in terms of cow numbers, Alger isn’t planning to grow his herd. For now, they will continue doing what they do best, which is striving to produce the most efficient milk possible to help set the farm up for the next generation of dairy farmers.

Ground Beef Tests Negative for H5N1, says USDA-APHIS

Thu, 02 May 2024 15:46:16 GMT

The USDA Food Safety and Inspection Service (FSIS) announced results from testing 30 samples of ground beef on Thursday, showing that all were negative for H5N1.

The agency made the announcement on its website, available for review here .

USDA-FSIS said it collected the samples from “states with dairy cattle herds that had tested positive for the H5N1 influenza virus at the time of sample collection. The samples were sent to APHIS’ National Veterinary Services Laboratories (NVSL) for PCR testing.”

PCR stands for polymerase chain reaction. Such testing is done to identify the presence or absence of human pathogens in food. Common pathogens routinely tested for in food include E. coli and Salmonella, for instance. In the ground beef study, no virus particles were found to be present.

The USDA said it is working on two additional beef safety studies. According to the information posted online, these include:

1. Beef muscle sampling of cull dairy cows condemned at select FSIS-inspected slaughter facilities: FSIS is currently collecting muscle samples at FSIS-inspected slaughter facilities of cull dairy cattle that have been condemned for systemic pathologies. The samples will be analyzed by APHIS using PCR to determine presence of viral particles. The results are forthcoming and will be posted as soon as they become available.

2. Ground beef cooking study: ARS will be conducting a beef cooking study and will be using a virus surrogate in ground beef and cooking it at different temperatures to determine log-reduction of the virus. The results will be posted as soon as they become available.

The agency said the results from both studies will be posted as soon as they become available.

Status Quo is Not the Goal for This Wyoming Young Dairy Producer

Wed, 10 Jan 2024 20:23:37 GMT

When you think of Wyoming you often think of scenic mountain views, roaming wild buffalo and a romanticized cowboy way of life. Generally, you don’t think of dairies. Although, travel to Carpenter, Wy., and you’ll see two-thirds of the state’s 9,000 dairy cows, who are milked at Burnett Dairy. You’ll also get to see an upcoming second-generation dairy farmer, Reese Burnett, who simply couldn’t imagine his life anywhere else, but in his home state of Wyoming, milking cows along with his family for a living. Reese’s goal is to not let grass grow under his feet, as he is enthusiastic to help drive his family’s dairy forward.

Unique Upbringing

Reese’s grandparents had a small cow-calf operation, along with dryland wheat, an hour north of Greeley, Colo. The family farm grew and diversified, including custom feeding cattle and running small feedlots. In the early 2000s, when mad cow Disease hit, the Burnetts were challenged with finding customers for their feedlot that forced them to change direction.

“This is what pushed my parents into the dairy business,” he says. “They started by renting a neighboring dairy in 2004, milking 200 cows. A year later they started Burnett Dairy and today milk 6,200 cows in a 110-cow GEA rotary.”

Reese left Wyoming and headed to Kansas State for college in 2018. When he returned home to the family farm, he spent a lot of time on genetics, herd health and nutrition. Over time, he has added additional responsibilities, including sharing the employee management.

“I’m very fortunate. My mom and dad and uncle have given me a lot of freedom in my work and have really allowed me to take off and do some fun things with our dairy,” he says.

For example, Reese quickly saw that milking the entire herd 3x a day was too much for the parlor to keep up with. He recommended milking more cows and shared that the majority still could get milked three times a day, with the remainder twice daily. Running 22.5 out of 24 hours and shutting down twice a day for a wash cycle, Reese shares that now the parlor is running at capacity.

Challenges Presented

Like many dairies, Burnett Dairy is no exception to challenges. Weather extremes—going from 95-degree summers that require irrigation to grow crops to sub-zero temperatures in the winter challenge Wyoming farms. Reese says that the dry heat is tolerable for the cows. Winters can be especially brutal, as he shares this past winter dropped 40 degrees in 30 minutes.

With Cheyenne an hour away, the Burnetts house all their employees, as it is too far away to commute them to work. With the magnitude of the dairy shipping seven semi-loads of milk each day and the new technology of the carrousel, including the two robots in the entry that pre-dip and clean teats, as well as a robot on the back side of the deck that sprays a post-dip, the family has become savvy at diagnosing problems, as a service call is timely.

Working With Family

Reese could never imagine not working on the family dairy farm. The discussion unfolded about him coming back to the operation, but the family knew 3,000 cows wasn’t going to be sustainable for them to support another family member. This is what spurred the expansion in 2019.

Although for Reese to come back to the farm, there were two requirements—obtain a four-year degree and work for someone else.

“We never had a sit-down meeting, but Dad and I would ride in the pickup, and we’d bring up the conversation and visit about it,” he says. “The biggest key was establishing trust from both sides.”

Three summers during college Reese found somewhere else to work, conducting internships with Royal Farms Dairy, a 6,000-cow dairy in Garden City, Kan., and Dairy Nutrition Management Company based out of Fort Collins, Colo., and WinStar Genetics in Shelley, Idaho, where he learned more about how to ultrasound cows.

“I think it’s super important to go see other dairies and get experience working on other farms,” Reese says, sharing that his experience working for Royal Farms Dairy outlined the importance of being disciplined to maintain details.

“If you want to be an above-average dairy, you have to pay attention to the details. And make sure even the smallest details are 100% every day,” he says.

His father agreed that three internships gave Reese a wealth of experience despite the original plan for Reese to work somewhere else after graduating college. He returned home in December 2021, as the dairy was quickly growing and there was now a spot for Reese.

Growing from milking 3,000 cows in a double-35 parallel to milking 6,200 in a 110-cow rotary, Burnett Dairy saw considerable changes that unfolded while Reese was away at college. The young Wyoming dairy producer shares that most of his ‘real’ education came after graduating college.

“I think that education is super important. I think college gives you a good foundation of science and why we do what we do. But the real education comes after school when you say, ‘Alright, this is what I learned in school, and how can I apply that every day on the farm,’” he says.

Reese shares that it took a lot of humility coming back as the owner’s son and being a recent college graduate.

“I pictured myself spending a lot of time managing cows and less time managing people,” he says, sharing that he understands you cannot be complacent about being good and must be driven to better yourself and your business. He underscores a key to success can be found outside of the farm office and in the barns.

“It’s good to have ownership on the ground with the cows,” he says. “That’s something I never want to lose part of.”

Future Plans

Burnett Dairy doesn’t plan to increase size right now, but they are breaking ground on three new calf barns to give them enough room to raise their beef-on-dairy crossbred calves. The family sees a continued value-added profit line in raising these calves and Reese shares that they plan to raise them all the way to slaughter.

While technology is intriguing to Reese, as his parlor is one of the largest rotaries in the world, he cautions other young producers not to put the cart in front of the horse.

“Don’t adopt the technology before it’s ready,” he says. “The biggest thing that my family looks at before adopting any technology is understanding how it will help our bottom line.”

The best piece of advice Reese offers to new graduates who are returning home to their family dairy is to have patience.

“Be patient with your time, be respectful to of all the years and service that the employees there have put in there,” he says. “You can learn from them, too.”

Glory to God

While managing cows and employees occupy a lot of Reese’s time, he says his biggest key to success is having a very faith-focused family.

“Family and God are our number one priority,” he says. “Being able to work together with family has allowed us to grow as much as we have these last couple of years.”

Reese and his wife, Hannah are expecting their first daughter in August, and they are excited to raise her on a faith-based family dairy farm.

“I loved growing up on my family farm. I was four years old when we started milking cows and I just have so many good memories working on the farm with my father,” he says.

Listen to UpLevel’s podcast with Reese Burnett:

https://open.spotify.com/episode/5a7HIiD4hpCVcsD9zIQyPP?si=2XZR8mAtTDOdtumgFh6WEw

Determination is Key to South Dakota Dairy’s Rich History

Wed, 06 Dec 2023 19:09:32 GMT

Tucked away in the northeast corner of South Dakota you’ll find cornstalks, jackrabbits and a 130-year-old dairy operation that runs on passion, perseverance and a focus on finding the right people. This dynamic trifecta is what makes up the unparalleled culture of MoDak Dairy in Goodwin, S.D., and it’s what led the Moes family to become a Top Producer of the Year finalist in 2023.

On any given day, brothers and co-owners Greg and Jim Moes, along with Greg’s son, Jacob, the farm’s herd manager, can be found working alongside their 40-plus employees on the operation. Whether it’s tending to the 4,000 acres of cropland or caring for the nearly 6,000 combined head of Holsteins and beef-on-dairy cattle, the Moeses aren’t afraid to get their hands dirty. In fact, it’s the springboard for their passion to dairy.

“Farming runs all the way up our family tree,” Greg says. “My great-grandparents moved here from Germany and purchased their first parcel of land back in 1894. This farm has been in the family ever since.”

The Road Back
Not long after graduating high school, the brothers made their way back to the farm with hopes of adding to its legacy.

While several of their friends moved away and pursued college, the duo say they attended the school of hard knocks.

“Neither one of us went to college,” Jim says. “We learned from experience instead.”

Complementing each other well, Jim discovered his area of expertise resided in the fields while Greg’s was with the cows. However, the pair knew learning on their own would only get them so far. They needed to take every opportunity to acquire new skills learned from others.

Whether it was a friend, neighbor or mentor, the Moes brothers knew asking questions would only propel themselves forward. And whenever a free moment presented itself, the two would stick their noses in the most recent issue of any farm magazine that was on the kitchen counter.

“My advice to any farmer is to read, read, read,” Greg says. “So much can be learned just from picking up a magazine. Whether it was articles about cover crops, cows or managing finances, we were always reading, and we still do.”

Growth That Almost Didn’t Happen
What started as 30 cows and a tiestall barn quickly grew to 300 head and a parlor. During the late-2000s, however, the Moeses had a big decision to make when it came to the future of their farm. This succession planning journey tested their perseverance.

“In 2007, my brother and I had reached a turning point in terms of what was next,” Greg says. “We didn’t know if it was time to get out of dairying or move on to the next step. I had a son, and Jim had a daughter, so we visited with them about what they wanted their future to look like. They expressed they wanted to come back to the farm, so in 2008 the decision was made to expand.”

Going from 300 cows to 2,000 cows was a monumental leap for the Moes family, but it was a decision they knew was right.

“We knew we needed to invest back into our farm — that’s a motto we’ve always lived by,” Greg says. “But milk prices came crashing down in 2009, and that was a big challenge we had to face. I was worried if we were even going to have a barn full of cows to milk at the end of the day.”

During a time when dairies across the country were throwing in the towel, the Moeses gritted their teeth and pushed on, knowing that to keep the farm around for the next generation, they would have to step up to the plate.

“Dealing with challenges is just part of the job; I don’t know a farmer who hasn’t wanted to pull their hair out at times,” Jim says. “In a way, it’s maddening because it’s always a different problem, and you don’t always know how to fix it. But that forces you to take a step back and look at what you’re presented with, then figure out who you need to get involved to help you solve it.”

With the farm on the line and the bank saying no to more loans, the Moes family turned toward their vendors for guidance.

“We were fortunate enough to have some of them provide us with operating notes to help get us by, but they also gave us advice on what we could do to survive,” Greg says. “It was a scary time, but with their collaboration, they helped put us in the driver’s seat. We brought our cost of production down and started growing more of our own feed, and ultimately, we made it through.”

They Saw the Potential
After completing the herd’s expansion, the Moeses knew they should diversify to mitigate risk in case milk prices crashed down again. With the farm already using sexed semen, the Moeses became early adopters of genomic testing technology and began selecting animals based off of their genetic potential to build a more efficient herd.

But just like any dairy, the farm had more than enough replacement heifers to fill the pipeline. That’s when the family decided to start incorporating beef genetics.

“We saw we were creating a problem by producing more heifers than we needed,” Greg explains. “It would have been easier to ship them somewhere else, but that wasn’t going to fix the issue. We sat down together to discuss a solution and said, ‘What if we tried beef?’ And it just took off after that.”

Expanding into Akaushi

Back in 2009, when milk prices were still at an all-time low, the Moes family began breeding the lower end of their milking herd to beef. Limousine semen was used in the beginning but as of recently, the family has discovered and expanded a niche for a dairy-on-Akaushi cross.

Known as the Emperor’s breed of Japan, the Akaushi breed is known worldwide for their distinct marbling that gives Akaushi beef a melt-in-your-mouth texture and a rich and
buttery flavor.

“We call it American Wagyu,” Greg explains. “It’s still relatively new in the U.S., but we are creating a market by taking our cross-breeding program and breeding dairy cattle to Akaushi. And the consumer demand seems to be there.”

Similar to 2009, the Moes family had reached a turning-point and knew they needed to reinvest in the farm.

With the beef-on-dairy area of their operation expanding and the cost of having others custom raise their replacement animals going up, the Moeses saw another opportunity to capitalize on: a new heifer facility.

“Having the heifers raised elsewhere was a big expense,” Jacob adds. “We knew that we could make a better profit if we raised the calves and crossbreds all the way out, but we didn’t have the facilities to do it right. So, in 2021, we built a new age, new concept calf barn with group housing, ventilation and a rail system for feeding calves on milk.”

The Moeses again leaned on their consultants and input from their employees to help them design the barn of their dreams, and it’s made a huge difference.

“There’s only one-and-a-half employees running that barn and managing 2,200 calves and heifers,” Jacob says. “I never would’ve thought that few of people could manage that many animals.”

People Power
For most, the word family is used to describe a person who is directly related to you. At MoDak Dairy, however, the definition stretches wider than that.

“I like to say that we have 40-some family members working here on the farm,” Greg says. “Each one of our employees is like family to us. We have people who have been with us for 35 years. We don’t just have employees; we have husbands, wives, kids, daughters, uncles and aunts all working here on this operation, and they’re the main driver behind our success.”

As the family has grown their business, they strive for continuous improvement and look for ways to make the most of their resources. An example of this is when the family made the decision to dive further into the beef-on-dairy sector. Instead of trying to navigate an unfamiliar market on their own, the Moeses enlisted the help of their lender, Farm Credit Services of America, to help them make sound business decisions.

“We communicate with them regularly so they can help us map out a plan,” Greg adds. “The beef market can be a different ballgame, so having another set of eyes on the business allows us to address challenges that we might not have seen and identify new opportunities to jump on.”

In addition, consulting companies also provide training and coaching for team members throughout the year to help build longevity within the operation.

“Many years ago, we brought in a consultant who has helped coach us through the transition process,” Greg says. “We met with him each year, and we’ve followed all the steps. It’s made a big difference with bringing Jacob on board. Having someone who you can bounce questions off of and lean on for advice is a tremendous asset.”

Making sure the farm has the right people on their team is another essential factor to MoDak’s success.

“We spend a lot of time making sure we have the right people in the right place,” Jacob says. “If somebody is going to be with us for a long time, we have to make sure that we’re putting them in the right spot for them to grow and, more importantly, for them to enjoy the job.”

The same can be said for MoDak’s team of trusted advisers and consultants.

“We put a lot of trust into these guys; they’re there to help us make the big decisions for the future of our farm,” Greg adds. “They’re a valuable piece of the equation. Having the right team members surrounding you just works better for everyone.”

Passing the Torch
For the past 130 years, the Moeses’ love for family and farming has been a key driver on their road to success. Representing the fourth generation on the farm, Greg and Jim pride themselves to have followed in their ancestors’ footsteps. And the fifth generation, represented by Jacob and other family members, continues to keep that tradition alive.

“I entered into farming to keep our dairy in the family and to pass it to future generations,” Greg says. “My goals today are the same: to see the future of MoDak Dairy as a multigenerational opportunity for future generations and for the future of families that work with us.”