Profitable dairy beef

 The company, which for six years has been mating Wagyu bulls to Angus cows, is now turning its attention to AI mating using Wagyu semen across Kiwi Cross dairy cows, which make up 43% of the national herd.

Spokesman Gerard Hickey says a Kiwi Cross Wagyu bobby calf generated by AI, regardless of sex, would be worth about $150 to a dairy farmer, as opposed to the average price for a bobby calf of about $35.

The great thing about the Kiwi Cross is the Jersey influence, he says.  

“We know they have a high quality, marbled beef and when you add the Wagyu you get a superb piece of meat. So that’s our interest. Also the Kiwi Cross cow is less utilised, in terms of the calf for beef, and we think there is an opportunity to grow our business for the benefit of all parties.”

Hickey says Firstlight Foods has processed enough Wagyu cattle – from the beef and dairy sectors – to have seen evidence of marbling level and eating quality in the product. And though they will continue to cross Wagyu with Angus, he believes the Kiwi Cross probably offers the greater opportunity for growth. 

“There are obviously some sizeable herds out there so we’re trying to raise the level of understanding of what we’re doing. We’ve been going for a few years and we have strong, stable retail markets… and 140 farmers working with us who want to grow further.”

It won’t matter whether the calves are heifers or bulls, Hickey says. The heifers tend to finish faster than the steers and that means they get a natural year-round spread of supply which is grass fed.

Farmers who sign up for the latest Wagyu deal buy semen from the Firstlight Wagyu Producer Group and when the calf is born it is bought by the company then on-sold to farmers who specialise in rearing and finishing these animals. There are also options for the dairy farmer to rear and grow their calves for a later sale.  

Hickey says they have established markets and now need more beef to fill these.

Wagyu beef is different from other beef in the value of the different parts of the carcase. While in all beef the high value cuts are in the middle of the animal, in Wagyu the second-best cuts are around the shoulder and the lowest value cuts are around the legs – the reverse of other breeds.

Hickey says they see the huge resource of Kiwi Cross cows as one they can utilise for everyone’s benefit.