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January 1, 2009
Animal ID & Traceability
‐$36.47
The second set of scenarios address what happens if the industry adopts
full animal tracing in the bovine sector, and as a result, is able to avoid
losing beef export market access. Table 3 summarizes this set of
scenarios under varying full bovine tracing adoption rates. The diagonal
values of the table are underlined to highlight that as adoption rate
increases, more of the export market share is likely to be retained. If 30%
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adoption of full tracing occurred and the export market loss that was
saved is 0%, the producer losses would be $3.72 per head reflecting
adoption costs. If adoption rate was 70% and this resulted in saving 25%
of the export market, the benefit (net of costs) of full tracing adoption to
beef producers would be $9.26 per head.
Table 3. Net Annual Gain in Beef Producer Surplus Under Varying
Adoption of Full ID and Tracing Rates
Full Tracing …