Angus-based beef on dairy cattle in southern Australia

AUSTRALIA’S beef-on-dairy sector is poised for rapid growth, with genetic improvement and collaborative advantages laying the groundwork for expansion, according to a new report released by FMG Global* and burger giant McDonald’s.

The report, Beyond the Breed: Unlocking Australia’s Beef-on-Dairy Potential, forms part of an ambitious project to lift annual processing in Australia to 100,000 beef-on-dairy animals by 2030.

This report is the culmination of four years of commercial development that began with the FMG organised and sponsored Accelerating Beef on Dairy conference held in the Yarra Valley dairy producing area in October 2022.

The report reveals the key foundations for growth are in place, including:

• Rapid progress in beef-on-dairy genetics, delivering animals with improved feed efficiency and superior carcase traits
• Strong consumer acceptance of the product’s excellent eating quality with research showing it is rated highly for tenderness and flavour, often matching or outperforming conventional beef
• Increased adoption of sexed semen in the dairy sector, increasing the potential supply of beef-on-dairy animals
• Emerging evidence of lower emissions than conventional beef, including two recent research reports
• Proven performance in Australian supply chains through a 2022-24 pilot program
• Strong growth in the sector overseas, particularly in the USA, Ireland and the UK
• Broad industry support, including Dairy Australia’s 10-year strategy, Calfways, to transform the management of dairy calves in Australia.

Connor Fitzgerald

“In our view, the growth and adoption of beef‑on‑dairy in Australia as a premium carcase solution will represent one of the most significant structural shifts in the beef industry so far this century,” FMG Global chief commercial officer Connor FitzGerald said.

He said collaborative relationships between every link in the chain were vital.

“The dairy and beef industries in Australia have historically operated in separate orbits, with different price cycles, different mindsets and different measures of success.”

“Bridging that gap requires a genuine shift from transactional thinking to long-term partnership. It is not easy, but the businesses that have made that shift, here and overseas, are the ones building the most resilient and consistent supply chains,” Mr Fitzgerald said.

The report features case studies from overseas and Australia that show the extent of the opportunity for beef processors.

The Buitelaar Group in the United Kingdom has leveraged beef-on-dairy animals to build the country’s largest integrated beef supply chain, which last year turned over more than £200 million.

The company’s chief executive officer Adam Buitelaar said the key to its success was a laser focus on producing a consistent product at the right quantities at the right time for its customers.

“It’s no good having the best steak in the world if you only get it once,” he said.

Western Australian beef processor Harvest Road is embracing beef-on-dairy to help bolster numbers for its Harvey Beef business. Harvest Road’s livestock general manager Damian Barsby said there was interest from dairy farmers.

“We’re trying to move them away from selling us a traditional dairy steer to a beef-on-dairy steer that we can utilise as a commercially higher value animal,” he said.

Tasmanian and Victorian beef processor Greenham Australia has successfully developed a beef-on-dairy supply chain to bolster supply for its premium grassfed beef market.

A copy of the report can be read here.

Previous Beef Central coverage on the topic of beef-on-dairy:

Double-down on beef from dairy, and beef-on-dairy – Feb 2025

Why corporations are investing in beefing up dairy cattle – Oct 2023

* FMG Global (Fulton Market Group) is responsible for procurement of McDonald’s beef requirements in Australia and overseas.