Farmer Plan Links Dairy Protein Boom to Increased Domestic Ground Beef Production

Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.

P HAU BEEF ON DAIRY (1).jpg

Charlsie McKay

LUBBOCK, Texas (RFD NEWS) — Tight beef supplies and rural job losses are colliding with a major shift inside the U.S. dairy sector, creating new momentum for farmer-led solutions to expand domestic production of ground beef. Western United Dairies says its “Make America More Ground Beef” proposal reflects changing market realities — particularly excess milk and record dairy cow numbers driven by protein demand.

According to CoBank analysis by Corey Geiger, U.S. dairy farmers have responded aggressively to market incentives. Butterfat production has surged 5 percent to 6 percent year over year, pushing the national milkfat average near 4.3 percent and creating an oversupply. At the same time, massive investment in protein-focused dairy processing — including cheese, whey, ultra-filtered milk, and yogurt — is reshaping milk checks, with protein poised to be the dominant revenue driver for years to come.

That protein focus has kept dairy cow numbers at 30-year highs, now near 9.6 million head, and is supported by strong demand for beef-on-dairy calves. Geiger suggests we may begin to see dairy farmers cull cows, thereby providing an influx of lean ground beef.

Western United Dairies argues that the USDA can use existing authority to better align these trends, increasing domestic beef throughput without new legislation or imports while keeping packing plants open.

Currently, processors import lean beef trimmings to mix into ground beef to meet the domestic demand.

Farm-Level Takeaway: Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
A rescheduled WASDE, China’s soybean squeeze, barge bottlenecks, and premium beef demand all collide this week — with cash decisions, basis, and risk plans on the line.
America’s love for burgers depends on open markets. Without lean beef imports, prices would skyrocket, crushing demand and destabilizing the beef industry.
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Slightly higher output amid softer gasoline pull points to steady corn grind — watch regional stocks and export pace for basis clues.
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
Using FEMA and USDA data, Trace One researchers estimate average annual U.S. agricultural losses of $3.48 billion, with drought accounting for more than half.
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
The impacts of the government shutdown have reached commodity growers with crops to move, ag economists monitoring the harvest without key data reporting, and meat producers in need of new export markets.
In a statement provided to RFD-TV News, a USDA spokesperson reiterated President Trump and the USDA’s commitment to farmers in difficult economic times.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.