Almost everyone in the cattle business knows these two things: (1) the feeder cattle market has demonstrated tremendous strength in reaching and sustaining record price levels during the past year, and (2) beef x dairy feeder cattle have become an important source of inventory for feedyard operators, regardless of geography.
Cattle Marketing Services, Inc. (CMS Auction), based in Amarillo, Texas, has been a leading marketer of feeder cattle since 2001 and beef x dairy cattle since 2006. “We got started marketing native beef cattle and Holstein feeders in the early 2000s,” said Delbert Hollis, CMS President. “Then as beef x dairy cattle numbers increased, we got involved in selling those cattle too. Over the past 8-10 years, beef x dairy numbers have exploded. Today, they are important to our customers and to our business as well.”
CMS recently analyzed its 2025 sale results on beef x dairy feeder cattle sold via their internet-based auction platform. The analysis provided interesting insight into many of the key drivers influencing this market. “We wanted to better understand the factors affecting beef x dairy feeder prices, so we can advise our clients on how to create cattle buyers really want,” Hollis said. “Our clientele is always looking for ways to improve the cattle they are offering for sale.”
The analysis included detailed lot-by-lot information on 469 groups of beef x dairy feeders, representing 94,932 head. Average weight was 526 pounds (range 300 to 850 pounds). Two-thirds of the cattle sold were steers. Seventy-three percent were out of Holstein dams, with the remaining 27% from Jersey and Hojo-bred females.
Highlights:
-From January 2025 to January 2026, the beef x dairy calf market increased by $176 per cwt., which equates to $1,056 per head on a 600-pound feeder steer or heifer.
-The price slide for added weight was the largest in cattle industry history. Average sale price decreased $60 for each additional 100 pounds of animal weight. This market feature is the
product of record-high prices and must be carefully considered as animals are being grown prior to selling.
-Beef x dairy calves out of Holstein dams averaged $26.83/cwt. higher than those from non-Holstein dairy females. Even on lighter animals, such as those weighing 400 pounds, this “dam” difference often amounts to more than $100 per head.
-Angus-sired calves sold $15.07/cwt. higher than those by other commonly used beef breeds, irrespective of the dairy breed of dam.
-Sale group size proved to be only a minor factor affecting the final price received. An added 100 head increased average sale price by only $3/cwt. Most groups sold as single load lots, and this did not significantly reduce their appeal to buyers.
-Non-hormone-treated cattle (NHTC) premiums fluctuated throughout the year but averaged $8.76/cwt. for 2025 overall.
-Top Dollar Angus sire-verified cattle traded at a $20.26/cwt. market premium, which indicates buyers are searching for and rewarding superior genetics in the beef x dairy sector.
-Marketing volumes varied throughout the year. The first quarter accounted for 24% of the 12-month supply of beef x dairy cattle sold. The second and third quarters brought the largest portions (30% and 28%, respectively), while the fourth quarter was smallest at 18%.
-The average 500-lb. beef x dairy steer sold for $425/cwt. through CMS in 2025. A U.S. average native steer of the same weight brought $420/cwt. This similarity in pricing speaks volumes about how buyers have accepted beef x dairy cross feeder calves. They are truly a mainstream source of cattle for many buyers and feeders.
“The analysis was helpful and provides a unique perspective on dairy crossbreds,” Hollis remarked. “We know buyers want detailed information on every group of cattle they bid on. Thus, we make every effort to provide complete descriptions on every lot. Sellers are understanding this more all the time. Promoting the attributes of their cattle, be it genetics or otherwise, really matters. Let’s face it, this business is difficult. Capital requirements are higher than ever and margins are narrow a majority of the time. Knowing as much as possible about the feeder cattle they purchase is critical to buyers and it also helps seller get paid for what they produce.”
For more information on Cattle Marketing Services, Inc., visit their website at: Home | Cattle Marketing Services, Inc. | CMS Livestock Auction | 6900 I-40 W STE 135, Amarillo, TX
