Calves important source of income for dairy farmers

Milk prices still account for the largest share of dairy farmers’ income. However, the importance of cattle-related revenues is growing. Higher prices for calves and cull cows in particular are generating additional income. As a result, cattle are playing an increasingly significant role in both the beef and dairy supply chains.

Revenue from cattle is becoming more important for dairy farms. This is according to figures from Rabobank. Milk remains the primary source of income, but returns from livestock are increasing. Based on an average milk price, these revenues now account for nearly 10% of total turnover.

Fewer animals, higher prices

According to Rabobank, the supply of calves is becoming increasingly tight. The Dutch dairy herd is shrinking due to nitrogen policies, environmental regulations, and farm extensification. As a result, fewer calves and cull cows are available.

This is reflected in market prices. In 2023 and 2024, newborn calves typically sold for between €100 and €225. By the summer of 2025, prices had risen to more than €500 per calf. Starter calves also became significantly more expensive.

At the same time, global demand for animal protein remains strong. This affects both the beef and dairy sectors. Whey proteins, in particular, are increasingly being used in sports nutrition and protein-enriched products. As a result, competition for raw materials within the protein chain is intensifying.

Interest in beef-on-dairy is growing

Interest in beef-on-dairy is increasing worldwide. This involves crossing dairy cows with beef breeds to produce calves that are better suited for beef production. In the United States, income from cattle now accounts for nearly 10% of total revenues on dairy farms.

Rabobank also sees opportunities in the Netherlands. Extensive dairy farms, in particular, can raise and market calves for beef production themselves. Origin, animal welfare, and lower CO₂ emissions are becoming increasingly important factors. Rabobank expects more Dutch calves to be directed toward beef production concepts alongside traditional veal production.

Rabobank.nl