Abstract Purpose Beef and dairy production systems produce several by-products, such as fertilizers, bioenergy, hides, and pet foods, among which the environmental impacts arising from production should be allocated. The choice of allocation method therefore inevitably affects the results of life cycle assessment (LCA) for milk and beef. The aims of this study were to map out the different allocation methods used in dairy and beef LCA studies and to clarify the rationale for selecting a certain method. Methods A literature review was conducted to identify the different allocation methods used in LCA studies of milk and beef production and the products using beef by-products as a raw material. The justifications for the use of different methods in the studies were also collected. To map out the perspectives of LCA practitioners and further clarify the reasoning behind the use of certain allocation methods, a mixed method survey with quantitative questions and qualitative explanatory fields was sent to the authors included in the literature review. Results and discussion The literature review showed that the most commonly used allocation method between milk and meat was biophysical allocation, which is also the recommended method in LCA guidelines of milk production. Economic allocation was the second most common method, although the rationale for using economic allocation was weak. By-products, such as inedible body parts, were not considered in milk studies and were taken into account in only a small number of beef studies. This might be because most of the studies have cradle-to-farm gate system boundaries. According to the survey, a significantly higher share of LCA practitioners would allocate impacts also to these by-products. Conclusions The allocation is usually done between milk and meat, and other by-products are not taken into account. Since these materials are an unavoidable part of production and there are numerous uses for them, these outputs should be recognized as products and also taken into consideration in LCA studies.