CANBERRA (Dow Jones)--An Australian cattle traceback system, which the industry regards as a key component in holding and building shares in premium beef exports markets, has been upgraded amid a sharp increase in usage. The National Livestock Identification System, or NLIS, is a key component in a system that allows beef to be traced back to individual animals.
More than 143,000 farms and 38 million electronic devices are registered on the database of the NLIS, with usage quadrupling since July 1, 2005, when the system became mandatory, according to a statement issued late Monday by system manager Meat & Livestock Australia Ltd. The NLIS database records an average of 41,000 cattle movements a day and has recorded up to 96,000 cattle movements in a single day.
The system processes 98% of all transactions in well under one hour, with 71% processed in under a minute, MLA reported. Changes to the NLIS will improve the navigation and usability of the system's database, it said. Key industry participants believe traceback of beef to cattle is the foundation of the food industry, which depends on the trust of consumers for its future.
Australia exports about two-thirds of beef production, with more than 90% of exports going to three major markets - Japan, the U.S. and South Korea. The U.S. industry, a key competitor, is lumbering toward adopting traceback programs, but not without some industry opposition.
Australia is the second-largest beef exporter in the world after Brazil.
-By Ray Brindal, Dow Jones Newswires; 612-6208-0902; ray.brindal@dowjones.com