Livestock markets can comply with the NAIS by tracking animal movements that occur through their facility. To do this, livestock markets need to be able to read individual animal-identification numbers so animal movement can be reported to the appropriate animal-tracking database. However, because identification methods can vary by specie, livestock markets may need multiple systems. With cattle, the livestock market would need to be able to read RFID tags by using an RFID reading system.
The systems put in place to record individual animal identification and movement records will need to be electronically based, so as not to interfere with the speed at which livestock market sales are conducted. Traditional paper-based means of recording animal movements through livestock markets offer two drawbacks with respect to conducting a fully functioning animal identification program. First, there are tremendous opportunities for data entry errors in a paper-based system. Secondly, a paper based-system does not support capturing individual animal identification information at the “speed of commerce” and would potentially slow the livestock market selling process.
Other opportunities that exist for livestock markets to offer their customers are tagging services, data management, and program verification (age/ source verification) among many other options. Because livestock-identification and tracing systems are relatively new in the United States, market segmentation and service differentiation opportunities exist for auction markets. These opportunities enable a livestock market to vertically align with industry partners to capture value from animal tagging and tracing services. Some auction markets that have discovered benefits associated with these services have aligned with process certification orrelated programs (e.g., source- and age-verification sales) to offer customer services and animal information exchange that are not available at more traditional auction markets. Added services can potentially increase the customer base and potentially enhance profits for an auction market.
Source: Kansas State University