Four years after the Mad Cow disease scare of 2003, the federal government is still apparently far from creating an effective, coordinated national program that provides "traceability" for every animal in the food supply chain.

In December 2003, the U.S. Department of Agriculture announced it would create a nationwide program - now known as the National Animal Identification System - to help livestock producers and health officials respond quickly to animal disease outbreaks.

But a report issued by the U.S. Government Accountability Office this past summer noted that while the USDA has made some progress in developing the identification system, it still has a long way to go to make a national animal identification program workable and attractive to its target audience.

The report was highly critical of the USDA's accomplishments to date, specifically citing these problems among others:

• Not prioritizing the implementation of the plan by species (the ID system applies not only to beef cattle but also to dairy cattle, alpacas and llamas, bison, deer and elk, goats, horses, sheep, pigs, poultry and fish and shellfish);

• Not developing a plan to integrate the new system with pre-existing USDA and state animal ID requirements;

• Not establishing a "robust process for selecting, standardizing and testing animal ID and tracking technologies";

• Not clearly defining the time frame for rapid trace-back and not requiring potential critical information to be recorded - such as species or age - in the system's databases.

But one of the biggest criticisms cited in the report was the USDA's decision to first implement the system as a voluntary program and later make it mandatory.

"USDA's decision to implement NAIS as a voluntary program may affect the agency's ability to attract the necessary levels of participation" to make it effective, the report stated.

John Heller, animal identification coordinator in the Colorado department of agriculture, said many livestock producers he's talked to do have a high level of wariness about adopting something promoted by the government, even on a voluntary basis.

"They tend to have a less-than-happy feeling about the government," Heller said. "Most of the producers understand there is a need for traceability, but there's a great concern about the government assisting with that need.

"There's been a ton of misinformation because of a fear of government being involved," he added.

Heller said an estimated 29 percent of Colorado livestock producers have registered their premises for animal identification. That's just under 7,000 of the 23,000 premises in the state that have livestock production operations, he said.

Would the program be farther along or not as far had it been mandatory from the beginning?

Heller also asks that same question. "I sometimes wonder if it wasn't a government program whether we'd see a lot more interest and involvement," he said.

Colorado's 29 percent participation level mirrors that at the national level, but that figure is misleading because one state - Wisconsin - has made producer participation mandatory.



Which system?

Choosing an animal identification system is another issue. The NAIS has not specified what type of ID technology it will ultimately require. Producers now use ear tags, tattoos, photos, digital chips and other methods to identify their individual animals.

"It becomes a business decision - how much you can spend on a particular technology," Heller said.

One locally based animal identification company - Optibrand - offers a retinal scanning technology. Retinal scans are touted as being more unique than a human fingerprint. The company was founded in 2003 and enjoyed immediate interest with the Mad Cow episode in the headlines.

Fred Kerst, Optibrand's CEO, said his company's ID system is able to provide tamper-proof identification and record all key information needed for a successful livestock operation.

"The tools that have been developed by Optibrand can capture information from any animal ID to be placed in a database," he said.

Kerst said he's also encountered the resistance Heller's seen and believes it will likely take a mandatory program to get an effective ID program up and running. "Every country that's started with a voluntary program was not able to get (enough) participation and has gone to mandatory programs."

Kerst said until that happens, Optibrand is trying to win over producers by giving them a "value-added" reason for investing in an ID system. Increasingly, he noted, consumers want to be sure the meat they buy is organically produced or from a safe herd, and a fully traceable system is the way to do that.

"That is the kind of opportunity that Optibrand thinks will lead the way to demonstrate that this isn't a cost-only thing but that it's an investment," he said.

Uncertainty about American beef production in 2003 led to the loss of a $2 billion Asian market, Kerst noted, with only about 25 percent of that recovered four years later.

"That's an indication of how important (an animal ID system) is," he said.



Steve Porter covers agribusiness for the Business Report. He can be reached at 970-221-5400, ext. 225, or at sporter@ncbr.com.