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Increasing the profitability of dairy-beef using the Commercial Beef Value (CBV)

In recent years, there has been a notable increase in dairy-beef cattle in Ireland. Historically, beef farmers lacked important information regarding the ‘genetic quality’ of dairy-bred cattle. However, the introduction of the Commercial Beef Value (CBV) has addressed this gap. This decision support tool has the potential to instigate tangible transformations within the industry, if beef farmers leverage this information in their procurement of cattle and if breeders of such animals respond to industry demands.

Increasing the profitability of dairy-beef systems using the Commercial Beef Value (CBV) 

What is the CBV?

  • The CBV, or Commercial Beef Value, is a tool for gauging the quality and anticipated profitability of non-breeding animals.
  • The CBV offers farmers valuable insights into the genetic worth of their animals, encompassing traits important only for non-breeding (drystock) enterprises, such as carcass weight, conformation, finishing age and feed intake (Figure 1).
  • CBV is denoted as a €uro value. A higher euro value signifies superior genetic merit across the included traits.

Figure 1. Commercial Beef Value

How does it benefit farmers?

  • The CBV allows farmers to make more informed decisions when purchasing animals, regardless of age.
  • Genotyped animals being traded through marts will have their CBV displayed on mart boards. When engaging in farm-to-farm sales, purchasers should request the CBV profile from the seller.
  • The beef merit of calves can vary significantly even within the same breed (Table 1).

2023 Born Beef Calves from the Dairy Herd

Sire Breed BTM 10% BTM 1/3 Average Top 1/3 Top 10%
Angus <€43 <€63 €72 >€84 >€116
Aubrac <€102 <€122 €132 >€145 >€179
Belgian Blue <€106 <€141 €160 >€174 >€208
Charolais <€126 <€153 €167 >€184 >€218
Friesian <-€25 <-€3 €6 >€15 >€36
Hereford <€29 <€51 €61 >€75 >€107
Limousin <€125 <€148 €159 >€175 >€209
Simmental <€59 <€89 €97 >€116 >€150

Table 1. CBV Values by breed for 2023 born dairy-beef calves, sourced from www.icbf.com

Teagasc Grange Research Herd Performance

Over multiple years at Teagasc Grange, within a grass-based system, high CBV genetics have consistently been more profitable, due to improved carcass traits at younger finishing ages and from lower concentrate input than low CBV beef x dairy and dairy x dairy steers (Table 2). 

 

High Angus

(€95 CBV)

Low Angus

(€61 CBV)

Holstein Friesian

(-€1 CBV)

Finishing Age (Months) 21.1 21.5 23.6
Carcass Weight (kg) 314 306 311
Carcass Conformation O=/O+ O= P+/O-
Carcass Fat 3+/4- 3+ 3+
Finishing Period (days) 51 62 127
Finishing Supplement (kg) 248 306 628
Net profit per head (€) 459 382 269
GHG per kg carcass (kg CO2e) 12.8 13.0 15.4

Table 2. Performance of 2020 and 2021 born dairy-beef steers of contrasting CBV managed within a grass-based finishing system.

National Herd Performance

Nationally dairy-beef cattle of higher CBV exhibit superior carcass weight, better conformation, and increased carcass value due to their increased ability to meet overall market specification, specifications compared to those of lower CBV (Table 3). Despite large differences in beef production efficiency (carcass value and finishing age), little difference in calf purchase price exists between the bottom and top 10% for dairy (€43) and Angus x dairy (€58) sired steers. The CBV is relevant all through the animal’s life. Therefore, beef finishers purchasing animals as calves, weanlings or store cattle, can utilise the CBV tool to assess the quality and efficiency of the animal.

CBV Rank Calf Price Finishing Price Finishing Age
Top 10% €99 €1538 817
2 €85 €1471 823
3 €79 €1455 826
4 €79 €1439 826
5 €78 €1415 824
6 €71 €1409 826
7 €72 €1392 827
8 €67 €1373 829
9 €65 €1338 832
Bottom 10% €56 €1263 833
Difference between top and bottom 10% €43 €275 -16

Table 3. Calf Price, Finishing Price and Finishing Age for Dairy x Dairy Steers in 2023 by CBV Value

CBV Rank Calf Price Finishing Price Finishing Age
Top 10% €249 €1763 778
2 €235 €1689 787
3 €230 €1684 789
4 €231 €1653 790
5 €229 €1632 788
6 €223 €1608 792
7 €218 €1589 802
8 €211 €1569 805
9 €208 €1541 817
Bottom 10% €191 €1490 831
Difference between top and bottom 10% €58 €273 -53

Table 4. Calf Price, Finishing Price for Angus x dairy steers in 2023 by CBV Value

How to breed calves of high CBV

  • The Dairy Beef Index (DBI) is a genetic index used in dairy farming to select bulls that will produce calves suitable for beef production, while also maintaining desirable calving traits in their progeny.
  • The index consists of three sub-indices: Calving, Beef and Carbon (Figure 2).
  • Dairy farmers should select bulls with high beef sub-index values in the DBI in order to improve calf quality.
  • The beef merit traits will be reflected in the CBV of the progeny.

Figure 2. Dairy Beef Index