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Electronic animal identification systems at livestock auction markets: perceptions, costs, and benefits

Master of Science / Department of Agricultural Economics / Ted C. Schroeder / Electronic animal identification systems are becoming more common in livestock auction
markets because of increased numbers of cattle being electronically identified. More cattle are being individually identified because of increasing enrollment in marketing alliances and
verification programs. Also, the National Animal Identification System (NAIS) has increased
awareness and perhaps use of electronic identification. In this study, individual characteristics of
livestock markets were analyzed to determine how they relate to a livestock market operator's
views, concerns, and knowledge of the NAIS as well as adoption of RFID reading equipment.
Investments in RFID tagging services and RFID reading equipment by livestock markets were
estimated and price premiums associated with RFID tagged and preconditioned cattle were
estimated. Data were from a national survey of livestock auction markets and cattle transaction
data were obtained from three Kansas livestock markets.
Auction markets that indicated they currently plan to add a RFID tagging service are
likely to have more knowledge of the NAIS program standards, how to adopt the NAIS
practices, and the probable costs involved. Managers of facilities that sell a large volume of
livestock annually tend to have a higher level of understanding of how to adopt the NAIS
practices and be more knowledgeable of the NAIS standards than operators of smallvolume
facilities. Managers of markets that have operating RFID reader systems tend to be more
understanding of how to adopt the NAIS practices and of costs associated with adopting the
NAIS. Livestock market managers tend to be highly concerned that adoption of individual
animal identification systems will adversely impact sale speed and tend to view the NAIS as a
threat to their business. Large volume
facilities, facilities that have registered their premises, and
facilities that plan to add a RFID tagging service are more likely to adopt RFID reader systems.
Economies of scale exist in RFID system adoption and RFID tagging services for auction
markets. Preconditioned and RFID tagged cattle brought a significant premium at only one of
three facilities where data were collected.

  1. http://hdl.handle.net/2097/464
Identiferoai:union.ndltd.org:KSU/oai:krex.k-state.edu:2097/464
Date January 1900
CreatorsBolte, Kati Jo
PublisherKansas State University
Source SetsK-State Research Exchange
Languageen_US
Detected LanguageEnglish
TypeThesis

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