Texas Dairy Trade Desk
Exports, imports and trade policy for Texas dairy

Exports and Markets

The U.S. Meat Export Federation and Dairy By-Products

A dairy farm sells milk, but it also sends cattle to market. That is where meat export promotion and the dairy business meet, and why it matters for Texas herds.

Illustration for the farm.FM story “Dairy Cow vs Beef Cow Debate Ends When Dairy Cow Demands Back Pay”
A farm.FM ranching story fits this look at how beef exports and cull cow prices reach a dairy's bottom line. Read “Dairy Cow vs Beef Cow Debate Ends When Dairy Cow Demands Back Pay” on farm.FM.

How does a meat export group connect to dairy?

The U.S. Meat Export Federation is a trade organization that promotes American beef, pork and lamb abroad. It does not market milk or cheese. The connection to dairy is the animal. Dairy cows that leave the herd, known as cull cows, and dairy-bred steers enter the beef supply, and what beef earns at home and overseas feeds back into what a dairy receives for those animals.

The headline pairing of meat exports and dairy by-products can sound odd, so it helps to be precise. By-products here means the non-milk outputs of a dairy operation, mostly cattle, and the items that come from processing them. Check the group's own pages for what it actually covers.

For a Texas dairy, the practical lesson is that the cattle side of the ledger is part of the export story even if no one stamps a cheese label on it.

Why do cull cow prices matter to a milk producer?

For many dairies, cull cow sales are a meaningful second revenue stream. When beef demand is strong, cull prices tend to rise, and when it weakens they fall. That cushions or compounds the milk price cycle. A dairy that plans only around its milk check can be surprised by a swing in cull income.

Check weekly cattle price reporting through USDA's Agricultural Marketing Service market news, and see the cattle and beef data compiled by USDA NASS and the Economic Research Service.

What does export demand do for beef prices?

When overseas buyers purchase American beef, including cuts and variety meats that are less popular at home, the whole carcass is worth more. Lean beef from dairy cows is often used in ground beef and processed products, so it is sensitive to both domestic demand and export access.

Trade policy matters here too. If a market closes or tariffs rise, product can back up at home and push prices down. The Foreign Agricultural Service tracks beef market access and the U.S. Trade Representative posts trade policy actions.

Think about how a cull cow actually travels. She leaves the farm, is processed, and the lean meat goes into products that may be sold at home or shipped abroad. Hides, organs and other items have their own markets, and their value can add up across a carcass. A healthy export outlet for those items supports the price of the whole animal, which in turn supports what a buyer can pay at the sale barn.

How should a Texas dairy plan around this?

Treat culling as a planned business decision. Keep records of herd health, reproduction and production so you can choose which animals leave and when. Talk to your buyer about how cull cows are priced and ask what weight, condition and health they require. Animal health rules also matter for movement, and the Texas Animal Health Commission publishes requirements for Texas cattle.

Panhandle dairies near Dumas sit close to large cattle feeding and packing operations, which gives local producers more options than many regions have. Compare offers and transport costs before you commit.

A hypothetical example: a dairy plans to cull a set of cows in a season when beef prices are firm. By scheduling sales ahead of a seasonal dip and keeping animals in good condition, it earns more per head than it would by selling in a rush. The planning is simple; the discipline is the hard part.

Where does food safety fit?

Dairy cows sent to slaughter must meet inspection and residue rules, so treatment records and withdrawal times matter. Violations can cost money and reputation. The USDA Food Safety and Inspection Service explains inspection requirements, and your veterinarian can walk you through withdrawal periods for each product you use.

Good records protect the sale. A buyer who sees clean documentation is more willing to pay a fair price.

Where to read and ask next

The sister page on beef cattle management covers the animal side, while the dairy herd guide covers herd care. For cash planning around uneven income, see this farm finance guide.

Over at farm.FM, the ranching stories and dairy stories cover both worlds, and a piece on cull cow prices and beef makes the link. For state help, contact AgriLife Extension.

If you want to keep it simple, check cattle market reports every week for a month and note how prices move. After a month you will have a feel for the rhythm of your local market.

Sources and further reading

Ask locally: Your veterinarian and livestock buyer can explain withdrawal times and how cull cows are priced.

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