New Zealand's Fonterra and Silver Fern Farms Collaborate on Dairy-Beef Initiative
Fonterra and Silver Fern Farms (SFF) have introduced a collaborative program designed to integrate dairy and beef production in New Zealand. The initiative aims to reduce operational uncertainty for producers by offering a curated list of approved beef sires known for traits such as easy calving, high growth potential, and moderate gestation lengths. These semen straws are now available to farmers through leading breeding cooperatives LIC, CRV, and GENEZ.
Anne Douglas, Fonterra’s group director of Farm Source, highlighted that this approach allows dairy operations to capture premium beef-on-dairy margins while breeding core herd replacements from high-performing cows. This, in turn, accelerates genetic gains within the industry.
Greg McSkimming, Silver Fern Farms' head of agribusiness, stated that the program offers New Zealand a chance to create a cohesive structural alignment across the supply chain. By better integrating genetics, rearing, and finishing stages, the initiative provides finishers and meat processors with a predictable pool of uniform livestock. Calves born from 2027 and finished cattle entering networks by 2029 will benefit from this model, which complements New Zealand's traditional beef sector and aims to meet global demand for sustainably produced lean beef.
The program also sets stringent eligibility criteria for commercial slaughter to ensure financial benefits for stakeholders. Eligible livestock must be dairy-cross steers or heifers from a dairy-breed dam and an approved beef-breed sire, with carcass weights between 220.5kg and 345kg. Additionally, the animals must be hornless, processed by 36 months of age, and have flawless traceability to their dairy farm of origin.
Connor FitzGerald, FMG Global's chief commercial officer, noted that minor genetic adjustments and optimized logistics create a win-win situation for dairy farmers, rearers, finishers, and processors. This approach not only benefits New Zealand's dairy industry but is also being expanded to Australian dairy farms with a target of 100,000 head annually by 2030.
