There is a shift happening in the balance between beef farmers, dairy farmers and veal farmers. As dairy farmers focus on genetics and look to beef-on-dairy as a way to generate income from the bottom half of the herd, veal producers are seeing potential to form partnerships with dairy farmers for a consistent supply of calves. One such veal and crossbred beef grower is Aaron Keunen of Perth County who has contracts with 21 younger farmers to raise calves for either the veal or beef market. Now he’s looking to close the loop by partnering with dairy farmers to source a consistent supply of crossbred calves. “The biggest hurdle is finding a true market value of a calf on a private deal,” says Keunen who raises veal and crossbred beef with his father, Brian Keunen. On this day, Aaron is visiting a Mennonite farmer near Kenilworth who feeds calves for the Keunens. A row of corn sprinkled with hay lies in front of several pens of calves. One pen is filled with large Holsteins almost ready to ship. The next pen features Holstein/Belgian Blue crosses, another Holstein/Simmental crosses and a third Holstein/Angus crosses. The Mennonite farmer is responsible for feeding and housing the animals while Aaron sources, sells and provides feed for the growing calves. The young Mennonite farmer is using this partnership with Aaron to profit from buildings on-site towards his dream of starting a dairy farm. Construction is underway! For young farmers who don’t have the cash flow or are risk-adverse, partnering with a buyer/seller can work to their advantage. The Keunens sell 40 to 50 veal calves weekly and around 1,000 finished crossbred cattle (both heifers and steers) annually. For Aaron, learning his responsibilities and specific gifts has been a process since he graduated from college five years ago. He learned much from his parents, the owners of Mapleview Agri Services. The company markets milk replacer so raising veal was a natural fit for the family. When Aaron joined, the family expanded the veal business into beef crossbreds so they could take advantage of two markets. If veal prices are good, the newborn calves they purchase are sold in the veal market. If veal prices are flat, the calves can be raised to a 1,500 pound weight for the beef market. Aaron credits his dad for having a good head for business, his mom as being a perfect overseer of details and himself as focusing on relationships. All three are keen for growth. “Relationships are changing and that has been a big part of our success,” says Aaron. “With the new generation, it’s not just about expectations and a ‘get it done’ attitude. It’s about working together and asking how we can provide the training so that they can meet those expectations.” Education and having a good working relationship motivates people, believes Aaron. It starts with educating farmers on how to care for young calves. Aaron likes to purchase calves at least one week old to reduce the stress calves face moving to a new facility. He looks for vigorous calves with a nice, square conformation, bright eyes and full of colo-strum. The goal is to have the calves fattened and shipped within 15 months. Instead of first building a frame and then filling it, the Keunens focus on fattening quickly. Aaron prefers Holstein/Belgian Blue and Holstein/Angus crosses, though he does buy other crosses as well. The Belgian Blue crosses are a higher-yielding animal, yielding 63 to 64 per cent compared to an Angus cross which typically yields 60 to 61 per cent. “That three per cent difference might be a yield of 30 pounds and at $2.50 per pounds, that makes a $75 difference in profitability per head,” calculates Aaron. However, the Belgian Blue crosses are “finicky” as calves and require extra attention. Their pens need to be very dry and calves require extra electrolytes and nutrition to “get them going”. Plus, they are more expensive to purchase, extending to the far end of the $200 to $450 range Aaron buys calves for. In contrast, the Angus-cross calves though lighter, are hardier. They don’t require as much attention and tend to have more market options when finished which can add dollars to the bottom line. However, in contrast to that, the Belgian Blue crosses have their own appeal as a leaner beef animal. Though sometimes that can backfire if the market demands more marbled beef. “You really have to watch the market,” laughs Aaron. “There are so many variables.” Aaron credits the Veal Farmers of Ontario organization for doing a great job in assisting veal producers with market avenues and finding markets for crossbred calves. Aaron says there is a little bit of friction between purebred beef farmers and farmers raising crossbred calves. They are, after all, angling after similar markets. The grade and quality of crossbred meat is questioned. Aaron says on an average load, the finished cattle average 80 per cent AAA grade with a “fractionally different yield over conventional beef.” He admits, however, he is dependent on genetics to be able to compete with pure beef calves. This is where he believes dairy farmers, veal/crossbred beef producers and semen companies can work together. “If we can amalgamate all three, then we can look at carcass quality and average daily gains,” says Aaron. He is currently “in conversation” with a few dairy farmers to form direct partnerships so that he doesn’t have to depend on sales barns to access his supply of calves. Such a partnership requires a lot of communication to understand what each party needs. Aaron needs a calf to have strong beef genetics, plus a good start the first week of its life. He also needs consistent volume. Meanwhile, a producer would need assurance of a fair price given the major fluctuations in crossbred calf price. “We could offer a premium if we knew the genetics of the calf,” suggested Aaron. Looking to the future, Aaron is excited about opportunities for growth and developing relationships within the industry. He plans to grow the business but doesn’t have a goal in mind, expecting it will happen organically. ◊