NCBA Approves Development Of
Voluntary National ID System

CHARLOTTE, North Carolina — Four years ago, the National Cattlemen's Beef Association began discussions on value-based marketing. Those preliminary discussions have now led to support by members for the development and implementation of a voluntary "National Cattle Identification System" that could be shared and used mutually by all segments of the beef industry.

At the recent NCBA annual meeting held here, members passed a resolution supporting the development of an economically feasible national identification system with continuing recognition of the hot iron brand as a method of identification.

Montana producer and value-based marketing task force chairman, Lemme Wilson, presented a proposal for a national cattle identification system during the live cattle marketing meeting.

Information sharing throughout all segments of the beef industry has been identified as critical to achieving an improved beef product sensitive to the demands of the marketplace, Wilson told listeners.

"We cannot regain market share if we don’t improve our product. And if we don’t have the ability to measure the product, how do we ever improve it?"

It has been estimated that up to 75 percent of all cattle being produced in the U.S. have some form of ID. However, this ID system, he noted, is typically used only at the point of production and is not transferred to the next component of the beef chain. Current identification systems do not provide a pathway for the transfer of information between sectors of the industry, nor do they support source verification of the individual animal.

The primary focus of the NCID system, he said, is information sharing to facilitate value-based marketing, with source verification a secondary benefit.

"The NCID system will facilitate transfer of carcass data to the producer who can then make genetic and/or management decisions to meet desired targets. Likewise, feeders will receive timely information from participating packing plants to enable management and supply decisions to better fit market end-points," Wilson explained.

It's hoped that this information exchange will also encourage more accurate pricing of live animals based on real value.

"Selling on averages allows for minimal, if any, information feedback to the feedyards, stockers or producers. Without good information on what each industry segment is producing, product development is a challenge," he reiterated.

As a secondary component, the NCID system will address the increasingly important concept of source verification. This process allows for identification of a beef carcass for origin tracking.

"Due to food safety implications, source verification is a key to consumer confidence, a significant driver for stabilizing beef demand," Wilson stressed. "In the unlikely event of a major disease outbreak in the U.S., the NCID system could play a key role in focusing efforts on the problematic cattle."

Additionally, the Montana producer said it is imperative that the U.S. develop a viable identification system to avoid exclusion from international markets. The European Union, he noted, is currently adopting regulations that will require all cattle sold after Jan. 1, 2000 to have birth-to-plate ID.

"This will likely apply to cattle traded within the 15 member countries as well as countries doing business with the EU. Other competitors, especially in the Asian market, are developing national identification systems with emphasis on food safety. Unfortunately, current ID systems in the U.S. may be inadequate in the near future to sustain or expand our export market."

The NCID system, Wilson said, would be designed in such a way that it would be usable by all producers in the beef chain regardless of size or computer/electronic capabilities.

A national individual animal database will be the foundation for the NCID System. Beef producers will submit information to the national database under several alternative methods. The NCID system will be based on radio frequency identification technology. It is anticipated that RFID eartags be used initially. Also, ISO standards, Wilson said, will be essential, not only for automated reading purposes but also for the numbering and unique ID system.

His report outlined how a generic NCID system might work. The tag/electronic ID company would receive blocks of unique ID numbers from the governing board. At the request of someone in the beef chain, that segment would receive their ID numbers for application. The ID company would submit the segment code for each request of ID for the individual segment requesting numbers. The segment code would then be sent along with the unique ID numbers to the central database.

As each segment of the beef chain submits ID numbers and related information to the database as set forth by the NCID board, this information would then be linked to the segment code, Wilson explained. As the animal moves through the beef chain, each participant will submit additional information.

Every participant who submits database information and has owned the animal at any point in its lifetime will have a code that will provide access to their animals' information in the database. When the animal is harvested, automatic retrieval of the ID number from the animal is imperative so carcass information from harvest will be linked to the other information in the database.

There are several options being considered for funding the system. Option one is to have the person that applies the ID tag bear the cost of the tag, thus creating initial and continued funding for the NCID system. Additionally, each participant who routinely submits and accesses information would be responsible for paying a yearly fee for management of the database plus additional fees based on size of the operation or fees for additional animal information or services.

Option two involves charging for the system based on a per-head fee.

There will be one centralized NCID database. Security and reliability, he told listeners, is essential to database performance and for the protection and integrity of the data. For security purposes, the addresses and names of animal owners will be stored in separate files.

Furthermore, information contained within the database will only be provided to the government under specific circumstances set by the ID board.

"Under no circumstances will the government have direct access to the database, but will obtain information through the ID board when necessary."

The NCID board as proposed would be appointed by NCBA and consist of representatives from throughout the industry. The proposed makeup is two seedstock/purebred producers; two cow-calf producers; two stocker operators; two feedlot operators; two packing companies and two auction market representatives. Non-voting advisors would be NCBA staff, electronic ID and ISO experts, and database experts.

The board would be responsible for oversight of the NCID system, including the database. The NCID board would also establish the criteria for information to be included in the database.