Well, your really comparing apples to oranges here.
Local auction barn has dairy influence sales once in awhile. All that means is, there might be a few Holstiens there that day. Instead of just going through un-announced on any other given sale day. Might be a Holstein buyer or two show up for those sales. Dairy guys have a tendency to know when that is, and have there steers there that day instead of some other time. Anyways, the last one they had, Holsteins were bringing about a dollar under what beef steers were bringing. If 900 lb beef steer was bringing 2.35 a lb, a 900 lb Holstien was around 1.35.
Takes more feed to get a Holstien where they need to be for slaughter. Not in a way that they eat more, but more so in the way that it takes longer. So they are on feed longer. Buyers take this into consideration when buying feeder cattle. So they don't bid up as much on the Holstien feeders.
As far as slaughtered and hanging on the rail, then its just a matter of meat grade then. The feed delima is over at that point. So its just whether the carcus meat gets graded as select, choice, or prime. Not many dairy steers will probably grade out as prime (personal opinion). Maybe not so much as they weren't capable, but moreso the extra feed wasn't put into them.
Bottom line, dairy cattle are bread up for dairy production. Beef cattle are bread up for meat production. You play around with genetics, and that's what you end up with. Your simply not starting out on the right foot if your raising a dairy animal for meat production. The genetics there, are for something else. Kind of just is what it is.
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