Economic opportunities of using crossbreeding and sexing in Holstein dairy herds

Application of antioxidants in extender on bull sperm cryopreservation to reduce the male effect in dairy fertility

Because male and female effects on fertility must be considered, it may be difficult to achieve accurate and repeatable fertility predictions using only sperm characteristics given differences in breed, health, and season. Improving sperm quality after cryopreservation may be a method to reduce the male effect on the fertility outcome. This study was conducted using 2 different Certified Semen Service approved extenders, one containing plant-derived antioxidants, to assess cryopreserved sperm quality and determine pregnancy per artificial insemination (P/AI) in a commercial dairy farm. Beef bull ejaculates (n = 24 ejaculates, n = 4 bulls) were split and frozen in egg-yolk-TRIS (EYT) or GameteGuard-FB cryopreservation extenders. Frozen-thawed sperm was evaluated for sperm quality and used for insemination in dairy cows (n = 4856). There was an improvement in total and progressive motility, acrosome integrity, and reduction of DNA fragmentation at 0 and 3 h after thawing in sperm frozen in GameteGuard-FB when compared with the EYT extender. An overall 12.7% improvement in pregnancy per AI (P/AI) was observed when GameteGuard-FB (40.8%) was used for cryopreservation when compared with EYT (36.2%). More importantly, GameteGuard-FB frozen semen increased P/AI for first service by 19.5% (35.9% EYT and 42.9% GameteGuard-FB) and 45.0% was also observed at third service (31.3% EYT and 45.4% GameteGuard-FB). The use of GameteGuard-FB resulted in an average 40% P/AI among bulls. Taken together, the increase in cryopreserved sperm quality using GameteGuard-FB can be used to minimize the male effects on pregnancy outcomes in commercial dairy farms.

EFFECTS OF BEEF SEMEN AND BEEF EMBRYO STRATEGIES ON PROFITABILITY: Economics of using beef semen and beef in vitro produced embryo transfer in Jersey herds

Dairy herds have adopted sexed semen (SS) and beef semen (BS) to control heifer inventory and increase calf sales revenue. Beef in vitro-produced embryo transfer (beef IVP-ET) may be an alternative to increase calf sales revenue. Besides, raising those Jersey beef crossbred and/or pure beef animals in a dairy system may be a new source of revenue. We aimed to evaluate breed strategies combining dairy conventional semen (CS), SS, BS, and beef IVP-ET on herd dynamics and profitability by marketing those animals with one-day-old or raising them to 180 kg. A Markov chain model was developed to maximize the profitability of Jersey herds by changing the number of dairy heifers sold at birth and the culling rate of 3rd and greater parity cows. The model presents inputs on the reproductive and productive performance of heifers and cows over time. The last year's data (year 10 - steady state) was used to calculate accrual operational cost and revenue per cow per year. We varied the breeding strategy by breeding order and parities, the embryo transfer cost ($85 or $170), the pure beef calf market price ($200 or $300), and by marketing Jersey-beef and pure beef animals with one-day-old or raising them to 180 kg. A total of 8 scenarios + default scenario were simulated. Overall, the proportion of SS use was 47.3 ± 0.6%. For the scenarios replacing all CS breedings with BS breedings, the proportion of CS and BS used was 52.3 ± 0.6. When beef IVP-ET was used, the percentage of BS and beef IVP-ET used was 22.4 ± 0.1% and 31.0 ± 0.1%, respectively. We observed that when we compared SS:BS with the default scenario, the production of purebred Jersey male calves was reduced by 83.5%, and profit/cow per year was increased from $113.5 to $203.3 with SS:BS. When a beef IVP-ET of $85 per transfer was used (scenarios 2 and 3), profit/cow per year was $145.5 and $176.2 for a pure-beef calf price of $200 and $300, respectively. In scenario 4, with a beef IVP-ET cost of $170, the lowest profit ($52.9 per cow per year) was found when marketing one-day-old pure-beef calves at $200. The highest profit was achieved for scenario raising the Jersey-beef crossbred animals to 180 kg ($232.9, scenario 6), followed by scenario 7 ($222.9, SS:BS:IVP-ET) with an embryo transfer cost of $85. Under the current market conditions, combining SS and BS in the reproductive program was a feasible economic opportunity for Jersey herds, yielding the highest net return. The adoption of beef IVP-ET in a reproductive program can potentially increase profit/cow per year, but its profitability will depend on the beef IVP-ET pregnancy cost, the pure-beef market price, calf performance, and the herd reproductive performance. In conclusion, raising the Jersey-beef crossbred calves may be a profitable strategy, and dairy producers need to evaluate the best option to invest in since it will take an extra risk to produce high-quality animals to the market.

Fertility in seasonal-calving pasture-based lactating dairy cows following timed artificial insemination or timed embryo transfer with fresh or frozen in vitro-produced embryos

The objective was to compare pregnancy per service event (P/S) in lactating dairy cows following timed artificial insemination (AI) or timed embryo transfer (ET) using either fresh or frozen in vitro-produced embryos. Oocytes were collected once per week for up to 9 wk using transvaginal ovum pick-up from elite dairy donors (ET-DAIRY; n = 40; Holstein-Friesian and Jersey) and elite beef donors (ET-ELITE-BEEF; n = 21; Angus). Both ET-DAIRY and ET-ELITE-BEEF donors consisted of heifers and cows. In addition, oocytes were collected from the ovaries of beef heifers of known pedigree following slaughter at a commercial abattoir (ET-COMM-BEEF; n = 119). Following in vitro maturation and fertilization, presumptive zygotes were cultured in vitro to the blastocyst stage. Grade 1 blastocysts were either transferred fresh or frozen for on-farm thawing and direct transfer. A total of 1,106 recipient cows (all lactating, predominantly Holstein-Friesian) located on 16 herdlets were blocked based on parity, calving date, and Economic Breeding Index, and randomly assigned to receive AI (n = 243) or ET (n = 863) after estrous synchronization with a 10-d Progesterone-synch protocol. Cows assigned to ET were further randomized to receive fresh (n = 187) or frozen (n = 178) ET-ELITE-BEEF embryos, fresh (n = 169) or frozen (n = 162) ET-DAIRY embryos, or fresh (n = 80) or frozen (n = 87) ET-COMM-BEEF embryos. Pregnancy was diagnosed using transrectal ultrasound on d 32 to 35 after synchronized ovulation and confirmed on d 62 to 65, at which time fetal sex was determined. Pregnancy per service event at d 32 was not different between AI (48.8%) and ET (48.9%) and did not differ between dairy and beef embryos (50.3% vs. 48.1%, respectively). However, P/S was less on d 32 following transfer of frozen embryos (41.6%) compared with fresh embryos (56.1%). Pregnancy loss between d 32 and 62 was greater for ET (15.1%) compared with AI (4.7%), with greater losses observed for frozen beef (18.5%), fresh beef (17.3%), and frozen dairy (19.2%) compared with fresh dairy (6.0%) embryos. Serum progesterone (P4) concentration on d 7 was associated with P/S at d 32 and 62. Cows in the quartile with the least serum P4 concentrations (quartile 1) had less probability of being pregnant on d 32 (33.4%) compared with cows in the 3 upper quartiles for serum P4 (45.7%, 55.6%, and 61.2% for quartile 2, quartile 3, and quartile 4, respectively). Sex ratio (male:female) at d 62 was skewed toward more male fetuses following ET (61.1:38.9) compared with AI (43.2:56.8) and was consistent with the sex ratio among in vitro blastocysts (61.2:38.8). In conclusion, P/S was similar for AI and ET, although pregnancy loss between d 32 and 62 was greater for ET than for AI.

Effects of herd management decisions on dairy cow longevity, farm profitability, and emissions of enteric methane - a simulation study of milk and beef production

Sustainable dairy and beef production provides environmental, economic, and social values that can potentially be maximized by optimizing herd management strategies. The length of a dairy cow's life is affected by, and affects, all three pillars of sustainability. Longevity in dairy cows is multifactorial and strongly dependent on herd management. Despite genetic improvements, the average time of culling for Swedish cows has barely changed and is currently at 2.6 lactations. This culling rate requires a high number of replacement heifers, generating high rearing costs for farmers. This study evaluated different herd management strategies to improve cow longevity and assessed the effects on enteric methane (CH4) emissions from the herd and the profitability of milk production and beef production from the dairy cows and their offspring. The base scenario, an average Swedish Holstein herd of 100 cows, was compared with seven scenarios simulated using a stochastic herd simulation model (SimHerd). Two of these scenarios involved improved health and survival of cows in the herd, three involved improved reproduction, one considered the consequences of keeping all surplus heifers in the herd, and one considered maximizing the use of X-sorted dairy semen and inseminating the rest of the herd with unsorted beef semen, to avoid surplus replacement heifers. Improved fertility had the greatest effect in increasing the productive life per cow, to 3.8 years compared with 2.8 in the base scenario, allowed for more use of beef semen, reduced the number of replacement heifers, and generated the highest herd profit (€98 per cow-year higher than base scenario). Keeping all surplus heifers instead of producing beef × dairy cross calves decreased the number of productive years by 0.8 and reduced profit by €22 per cow-year. The profit was highly associated with costs related to replacement heifers. The highest beef output (3 369 kg per year more than base scenario) was achieved by keeping all heifers and culling a high share of dairy cows, but this scenario also generated much higher enteric CH4 emissions (+1 257 kg per year). Improving health, survival, or fertility reduced enteric CH4 emissions by 90-255 kg per year, while total yearly beef production ranged from 59 kg less to 556 kg more than in the base scenario. Reducing the number of replacement heifers needed by improving cow reproductive performance is thus key to increasing cow longevity and profitability, while reducing enteric CH4 emissions from the herd without compromising milk and meat production.

Effects of the Breeding Strategy Beef-on-Dairy at Animal, Farm and Sector Levels

The decline in farm revenue due to volatile milk prices has led to an increase in the use of beef semen in dairy herds. While this strategy ("Beef-on-dairy" (BoD)) can have economic benefits, it can also lead to unintended consequences affecting animal welfare. Semen sale trends from breeding organizations depict increasing sales of beef semen across the globe. Calves born from such breeding strategies can perform better when compared to purebred dairy calves, especially in terms of meat quality and growth traits. The Beef-on-dairy strategy can lead to unintentional negative impacts including an increase in gestation length, and increased dystocia and stillbirth rates. Studies in this regard have found the highest gestation length for Limousin crossbred calves followed by calves from the Angus breed. This increase in gestation length can lead to economic losses ranging from 3 to 5 US$ per animal for each additional day. In terms of the growth performance of crossbred animals, literature studies are inconclusive due to the vast differences in farming structure across the regions. But almost all the studies agree regarding improvement in the meat quality in terms of color, fiber type, and intra-muscular fat content for crossbred animals. Utilization of genomic selection, and development of specialized Beef-on-dairy indexes for the sires, can be a viable strategy to make selection easier for the farmers.

Enteric Methane Emissions from Dairy-Beef Steers Supplemented with the Essential Oil Blend Agolin Ruminant

Agriculture is the largest source of methane globally, and enteric methane accounts for 32% of methane emissions globally. Dairy-beef is an increasingly important contributor to the beef industry. The objective of this study was to investigate if supplementation with a blend of essential oils (Agolin Ruminant) reduced enteric methane emissions from dairy-bred steers. Methane was measured from thirty-six Holstein Friesian steers (18 control and 18 treatment) in open-circuit respiration chambers, at three time-points relative to the introduction of Agolin Ruminant: (i) -3 (pre-additive introduction co-variate), (ii) 46 days after introduction, and (iii) 116 days after introduction. A significantly lower methane yield was observed in treated animals compared to control animals at both 46 days (p < 0.05) and 116 days (p < 0.01) after the introduction of Agolin Ruminant, although there was no difference in methane production (g/day). Control animals appeared to be more affected by isolation in respiration chambers than animals receiving Agolin Ruminant, as indicated by a significant reduction in dry matter intake by control animals in respiration chambers.

Exploring Rotational Grazing and Crossbreeding as Options for Beef Production to Reduce GHG Emissions and Feed-Food Competition through Farm-Level Bio-Economic Modeling

In the context of a growing population, beef production is expected to reduce its consumption of human-edible food and its contribution to global warming. We hypothesize that implementing the innovations of fast rotational grazing and redesigning existing production systems using crossbreeding and sexing may reduce these impacts. In this research, the bio-economic model FarmDyn is used to assess the impact of such innovations on farm profit, workload, global warming potential, and feed-food competition. The innovations are tested in a Belgian system composed of a Belgian Blue breeder and a fattener farm, another system where calves raised in a French suckler cow farm are fattened in a farm in Italy, and third, a German dairy farm that fattens its male calves. The practice of fast rotational grazing with a herd of dairy-to-beef crossbred males is found to have the best potential for greenhouse gas reduction and a reduction of the use of human-edible food when by-products are available. Crossbreeding with early-maturing beef breeds shows a suitable potential to produce grass-based beef with little feed-food competition if the stocking rate considers the grassland yield potential. The results motivate field trials in order to validate the findings.

High-Efficiency Bovine Sperm Sexing Used Magnetic-Activated Cell Sorting by Coupling scFv Antibodies Specific to Y-Chromosome-Bearing Sperm on Magnetic Microbeads

Sperm sexing technique is favored in the dairy industry. This research focuses on the efficiency of bovine sperm sexing using magnetic-activated cell sorting (MACS) by scFv antibody against Y-chromosome-bearing sperm (Y-scFv) coupled to magnetic microbeads and its effects on kinematic variables, sperm quality, and X/Y-sperm ratio. In this study, the optimal concentration of Y-scFv antibody coupling to the surface of magnetic microbeads was 2–4 mg/mL. PY-microbeads revealed significantly enriched Y-chromosome-bearing sperm (Y-sperm) in the eluted fraction (78.01–81.43%) and X-chromosome-bearing sperm (X-sperm) in the supernatant fraction (79.04–82.65%). The quality of frozen–thawed sexed sperm was analyzed by CASA and imaging flow cytometer, which showed that PY-microbeads did not have a negative effect on X-sperm motility, viability, or acrosome integrity. However, sexed Y-sperm had significantly decreased motility and viability. The X/Y-sperm ratio was determined using an imaging flow cytometer and real-time PCR. PY-microbeads produced sperm with up to 82.65% X-sperm in the X-enriched fraction and up to 81.43% Y-sperm in the Y-enriched fraction. Bovine sperm sexing by PY-microbeads showed high efficiency in separating Y-sperm from X-sperm and acceptable sperm quality. This initial technique is feasible for bovine sperm sexing, which increases the number of heifers in dairy herds while lowering production expenses.

Board Invited Review: Crossbreeding beef × dairy cattle for the modern beef production system

Current trends in the United States dairy industry suggest that crossbred beef × dairy calves are replacing a proportion of the calf-fed Holstein steers slaughtered for beef each year. Economic pressures value preweaned beef × dairy calves at a premium over preweaned dairy bull calves; however, there is little modern data to support that intensively fed crossbred calves maintain their premium value over dairy steers across the supply chain. Data from international production systems and from historic research suggests that beef × dairy cattle had greater average daily gains and converted feed to gain more efficiently than dairy steers. Regarding carcass characteristics, across the literature crossbreds consistently yielded heavier carcasses that had lower proportions of trim than dairy steers. Fewer comparisons of beef × dairy and dairy steers exist in the literature for other economically relevant carcass characteristics such as ribeye area, backfat, marbling, tenderness, and eating quality. Existing published data are inconsistent among studies, highlighting the necessity for more research tailored to the United States beef production system.

Breeding schemes with optimum-contribution selection or truncation selection for beef cattle destined for use on dairy females

We tested the hypothesis that the size of a beef cattle population destined for use on dairy females is smaller under optimum-contribution selection (OCS) than under truncation selection (TRS) at the same genetic gain (ΔG) and the same rate of inbreeding (ΔF). We used stochastic simulation to estimate true ΔG realized at a 0.005 ΔF in breeding schemes with OCS or TRS. The schemes for the beef cattle population also differed in the number of purebred offspring per dam and the total number of purebred offspring per generation. Dams of the next generation were exclusively selected among the one-year-old heifers. All dams were donors for embryo transfer and produced a maximum of 5 or 10 offspring. The total number of purebred offspring per generation was: 400, 800, 1,600 or 4,000 calves, and it was used as a measure of population size. Rate of inbreeding was predicted and controlled using pedigree relationships. Each OCS (TRS) scheme was simulated for 10 discrete generations and replicated 100 (200) times. The OCS scheme and the TRS scheme with a maximum of 10 offspring per dam required approximately 783 and 1,257 purebred offspring per generation to realize a true ΔG of €14 and a ΔF of 0.005 per generation. Schemes with a maximum of 5 offspring per dam required more purebred offspring per generation to realize a similar true ΔG and a similar ΔF. Our results show that OCS and multiple ovulation and embryo transfer act on selection intensity through different mechanisms to achieve fewer selection candidates and fewer selected sires and dams than under TRS at the same ΔG and a fixed ΔF. Therefore, we advocate the use of a breeding scheme with OCS and multiple ovulation and embryo transfer for beef cattle destined for use on dairy females because it is favorable both from an economic perspective and a carbon footprint perspective.

Economics of using beef semen on dairy herds

The economic value of using beef semen in dairy herds depends on the market value of calves (crossbred beef and dairy), market price of semen (beef, conventional, and sexed), herd reproductive performance, and semen combination strategies. Due to the complex interaction among all these factors and their inherent changing conditions, the quest for an optimal strategy is best served by the application of an integrated model and a decision support tool adaptable to ever-changing farm and market conditions. We have developed a model and a decision support tool to calculate the income from calves over semen costs (ICOSC) in response to user-defined beef semen crossbreeding strategies in combination with sexed and conventional semen utilization. The model follows a Markov-chain approach in which animal (heifer and cow) statuses (age, months after calving, lactation, pregnancy, calving) are simulated monthly. Replacement balance is calculated as the difference between demand and supply of calves in function of selected semen utilization protocols, which could include beef, sexed, or conventional semen. A case study was performed in a 1,000-cow virtual Holstein herd with 35% turnover rate and 7% stillbirth rate. Five strategies of beef semen utilization on adult cows (0 to 100% in 25-percentage-unit intervals) were combined with 6 strategies of sexed semen use [none (NS), first service in heifers (1H), first and second services in heifers (2H), 2H + 20% top genetic cows (TOP), 2H + first service in primiparous (1C), and 1C + first service in second-lactation cows (2C)]. All animals not bred to either sexed or beef semen were bred to conventional semen. Having a price of beef calves ~4 times greater than the price of a dairy calf and having the price of sexed semen ~2.3 times greater than the conventional or beef semen determined that the optimal breeding semen protocols that concurrently maximized the ICOSC and produced enough replacements were 100% beef semen use after 2C sexed semen protocol (ICOSC = $2,001) for medium reproductive performance (~20% 21-d pregnancy rate) and 100% beef semen after 1H sexed semen protocol (ICOSC = $6,215) for high reproductive performance (~30% 21-d pregnancy rate). These strategies were consistently the best options under several feasible market conditions for herds with medium and high reproductive performance. However, the optimal ICOSC was negative or marginally low for low-performance herds (~15% 21-d pregnancy rate), for which the opportunity to use beef semen is minimal or nonexistent.

Use of Beef Semen on Dairy Farms: A Cross-Sectional Study on Attitudes of Farmer Toward Breeding Strategies

The use of beef semen on dairy cows has been increasing steadily since 2017. We aimed to describe dairy management practices toward the use of beef semen by surveying farmers in California, the largest US dairy producer. In January 2020, we mailed a printed version of the beef semen use survey to 1,017 dairy producers in California, who also had the option to answer the survey online. The questionnaire consisted of 33 questions that were categorized into three sections: general herd information (n = 10), beef semen management (n = 17), and sexed dairy semen management (n = 6). The response rate was 13.9% (n = 141). Regression models were used to evaluate the associations between the dairy-beef crossbred sale price, use of beef semen, and use of sexed dairy semen vs. herd characteristics. The mean ± SD herd size was 1,693 ± 1,311 milking cows. Most dairies (81%) reported using beef semen on dairy cows. Among respondents, 78% reported extra profit as the main advantage of using beef semen, followed by control of heifer inventory (69%), genetic improvement (37%), and other factors (8%). Most respondents (58%) started using beef semen in the past 3 years and 34% of the respondents were breeding more than 30% of all the eligible cows with beef semen. Angus semen was the most used (reported by 89% of the respondents), followed by Limousin (12%), Wagyu (10%), Charolais (7%), others (5%, Limflex, Stabilizer, and Hereford), and Simmental (4%). Reproductive performance was an important criterion to select cows to receive beef semen and 45% of the respondents reported starting breeding cows with beef semen from the third breeding, 18% on the fourth breeding, and 21% on the fifth or greater breedings. The region of California (a proxy for type of production system) contracts with a calf ranch and the herd breed explained 76.7% of the observed variation in the day-old dairy beef crossbred calf price. Survey results demonstrated the widespread use of beef semen in dairies and the main breeding strategies adopted by dairy farmers.

Dairy cattle farmers' preferences for different breeding tools

Breeding technologies play a significant role in improving dairy cattle production. Scientifically proven tools for improved management and genetic gain in dairy herds, such as sexed semen, beef semen, genomic testing, dairy crossbreeding, and multiple ovulation embryo transfer (MOET), are readily available to dairy farmers. However, despite good accessibility, decreasing costs, and continuous development of these tools, their use in Sweden is limited. This study investigated Swedish dairy farmers' preferences for breeding tools through a survey including a discrete choice experiment. The survey was distributed online to 1 521 Swedish farmers and by an open link published through a farming magazine. In total, the study included 204 completed responses. The discrete choice experiment consisted of 10 questions with two alternative combinations, which gave 48 combinations in total. Utility values and part-worth values were computed using a conditional logit model based on the responses in the discrete choice experiment for nine groups of respondents: one group with all respondents, two groups based on respondents using dairy crossbreeding or not within the past 12 months, two based on herd size, two based on respondent age, and two based on whether respondents had used breeding advisory services or not. The strongest preferences in all groups were for using sexed semen and beef semen. Genomic testing was also significantly preferred by all groups of respondents. Except in large herds, MOET on own animals was significantly and relatively strongly disfavoured by all groups. Buying embryos had no significant utility value to any group. Dairy crossbreeding had low and insignificant utility values in the group of all respondents, but it was strongly favoured by the group that had used dairy crossbreeding within the past 12 months, and it was disfavoured by the group that had not. Part-worth values of combined breeding tools showed that combinations of sexed and beef semen, alone or with genomic testing without dairy crossbreeding, were the most preferred tools. Compared with the most common combinations of breeding tools used in the past 12 months, the part-worth values indicated that Swedish dairy farmers may prefer to use breeding tools more than they do today. Statements on the different breeding tools indicated that the respondents agreed with the benefits attributed to the breeding tools, but these benefits may not be worth the cost of genomic testing and the time consumption of MOET. These valuable insights can be used for further development of breeding tools.

Review: An overview of beef production from pasture and feedlot globally, as demand for beef and the need for sustainable practices increase

Beef is a high-quality source of protein that also can provide highly desirable eating experiences, and demand is increasing globally. Sustainability of beef industries requires high on-farm efficiency and productivity, and efficient value-chains that reward achievement of target-market specifications. These factors also contribute to reduced environmental and animal welfare impacts necessary for provenance and social licence to operate. This review provides an overview of beef industries, beef production, and beef production systems globally, including more productive and efficient industries, systems and practices. Extensive beef production systems typically include pasture-based cow-calf and stocker-backgrounding or grow-out systems, and pasture or feedlot finishing. Cattle in pasture-based systems are subject to high levels of environmental variation to which specific genotypes are better suited. Strategic nutritional supplementation can be provided within these systems to overcome deficiencies in the amount and quality of pasture- or forage-based feed for the breeding herd and for younger offspring prior to a finishing period. More intensive systems can maintain more control over nutrition and the environment and are more typically used for beef and veal from dairy breeds, crosses between beef and dairy breeds, and during finishing of beef cattle to assure product quality and specifications. Cull cows and heifers from beef seedstock and cow-calf operations and dairy enterprises that are mostly sent directly to abattoirs are also important in beef production. Beef production systems that use beef breeds should target appropriate genotypes and high productivity relative to maintenance for the breeding herd and for growing and finishing cattle. This maximizes income and limits input costs particularly feed costs which may be 60% or more of production costs. Digital and other technologies that enable rapid capture and use of environmental and cattle performance data, even within extensive systems, should enhance beef industry productivity, efficiency, animal welfare and sustainability.

Perspectives on the Management of Surplus Dairy Calves in the United States and Canada

The care of surplus dairy calves is a significant issue for the United States and Canadian dairy industries. Surplus dairy calves commonly experience poor welfare as evidenced by high levels of mortality and morbidity, and negative affective states resulting from limited opportunities to express natural behaviors. Many of these challenges are a result of a disaggregated production system, beginning with calf management at the dairy farm of origin and ending at a calf-raising facility, with some calves experiencing long-distance transportation and commingling at auction markets or assembly yards in the interim. Thus, the objectives of this narrative review are to highlight specific challenges associated with raising surplus dairy calves in the U.S. and Canada, how these challenges originate and could be addressed, and discuss future directions that may start with refinements of the current system, but ultimately require a system change. The first critical area to address is the management of surplus dairy calves on the dairy farm of origin. Good neonatal calf care reduces the risk of disease and mortality, however, many dairy farms in Canada and the U.S. do not provide sufficient colostrum or nutrition to surplus calves. Transportation and marketing are also major issues. Calves can be transported more than 24 consecutive hours, and most calves are sold through auction markets or assembly yards which increases disease exposure. Management of calves at calf-raisers is another area of concern. Calves are generally housed individually and fed at low planes of nutrition, resulting in poor affective states and high rates of morbidity and mortality. Strategies to manage high-risk calves identified at arrival could be implemented to reduce disease burden, however, increasing the plane of nutrition and improving housing systems will likely have a more significant impact on health and welfare. However, we argue the current system is not sustainable and new solutions for surplus calves should be considered. A coordinated and holistic approach including substantial change on source dairy farms and multiple areas within the system used to market and raise surplus dairy calves, can lead to more sustainable veal and beef production with improved calf outcomes.