RFID animal identification in the U.S. beef industry: A study of actual costs incurred and price premiums recieved at the producer level

The world is moving towards greater traceability and transparency in food chains. Due to animal health concerns, such as Bovine Spongiform Encephalopathy (BSE), many countries have implemented, or are beginning to implement, individual animal identification (ID) and tracking protocols to provide this transparency. In the United States (U.S.), the National Animal Identification System (NAIS) has been developed to provide animal ID and traceability. The beef industry expects that RFID will be the technology used to fulfill the NAIS requirements.;Many producers are worried about the cost of this new technology. This dissertation explores the actual costs being incurred by producers currently using RFID animal ID in the western U.S. Average price premiums being received when calves with RFID tags are sold are also estimated in this dissertation. A cost/benefit analysis is done to evaluate the profit or losses received from implementing RFID animal ID.;Cost data was gathered from producers using RFID, RFID service providers, and program facilitators. Average price premium were estimates statistically from data gathered from Superior Livestock Auction (SLA) for video auctions that took place during 2004 through 2006, inclusive. Partial budgets were developed to show the profit and loss potential for operations of different sizes when different management styles are used to implement animal ID. The findings in this dissertation demonstrate that management styles prior to the implementation of a RFID system have a much greater affect on the marginal returns from implementing animal than the size of the operation has.