| While no beef producer ever wants to experience a catastrophic disease outbreak in the herd, in seeing the BSE (bovine spongiform encephalopathy) and FMD (food and mouth disease) outbreaks that have occurred in the world, cattle raisers must prepare for that possibility. One way to minimize the risks to the herd is to adopt a cattle tracking system such as CattleTrace. With that system cattle are given an ultra high radio frequency tag that stays with them and is scanned at different points in their life cycle. Since the program began in June 2018, 50,000 tags have resulted in 150,000 sightings across all sectors of the beef industry. The question often asked by beef producers is “What is this going to cost me?” According to agricultural economist and BCI faculty member Dr. Dustin Pendell, the answer will vary depending on the size of the operation. “On a small operation, such as one with 30 head, the total costs are going to be a lot higher compared to a 2,000-head operation because in the larger operation those fixed expenses can be spread out,” Pendell says. To better understand the economics of traceability, Pendell and a team of researchers studied the costs and impacts of CattleTrace. First, they looked at the direct costs to beef producers associated with the program. Secondly, they evaluated the economic impacts to the industry as a whole. Pendell says when considering the economics of scale, the average cost of implementing ranged form $2.84 to $6.06/head for cow/calf producers; $.040 to $0.83/head for backgrounders; $0.14/head for sale barn managers; $0.33 to $0.55/head for feedlot operators; and $0.02 to $0.18/head for packers. In summary, Pendell says, “The implementation of a national disease traceability program is inevitable, and beef industry stakeholders are helping to guide and shape the structure and characteristics of such a system.” To learn read the research study overview, go to AgManager.info. |
Beef Cattle Institute