Texas A&M AgriLife estimates dairy producers to offset lower milk prices with higher calf prices

WICHITA FALLS, Texas (KAUZ) - Dairy producers are facing a decline in milk prices, but beef prices are up and providing added revenue to help them weather the storm, according to Texas A&M AgriLife.

The beef-on-dairy breeding program is as much or more of their business as the milk marketing accordin to AgriLife Extension dairy specialists.

AgriLife said that recent data from CattleFax indicated 3.22 million beef-on-dairy animals were sold in 2024, where 10 years previously, there were only 50,000 head sold.

This growth is also helping the dairy industry fill supply gaps within the beef industry amid historically tight cattle supplies.

Consolidation continues among Texas dairies, with operation numbers decreasing, but the number of dairy cows increasing.

According to the U.S. Department of Agriculture National Agricultural Statistics Service, Texas lost 10 dairies in 2024 and another 10 in 2025, going from 294 to 274 in the past two years.

Cow numbers, however, increased from 675,000 to 705,000 head in the same period.

AgriLife said that Texas milk production is expected to continue growing in 2026, but at a slower rate compared to the previous 10 years.

Read more on the offset of cattle prices in “Texas dairy producers offset lower milk prices with higher calf prices” by Kay Ledbetter.