IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Value of Genetic Information in a Whole-Chain Traceability System for Beef

  • Seyoum, Bruk Tefera
  • Adam, Brian D.
  • Ge, Candi

An animal traceability system can help control disease, improve food safety, improve production practices and provide enhanced marketing opportunities. However, attempts to establish a beef traceability system in the U.S. has faced resistance from many beef producers. Some of the reasons for resistance were cost, lack of confidentiality, and lack of accuracy of the system. Moreover, those who incurred the costs would not necessarily have received the benefits of such a system. This study evaluates the costs of a whole chain traceability system and compares them to the benefits of a traceability system in improving feed efficiency of cattle. We determine the cost saving from purchasing a higher proportion of high-­‐efficiency cattle using the information available in the whole chain traceability system. We also determine the benefits that should be shared among cow/calf, stocker and feedlot operators to motivate them to adopt such a system. Results show that while cow/calf producers would bear most of the cost of a traceability system, they would also receive the least benefits. To make participation in a traceability system profitable for cow-­‐calf producers, the results indicate that $20 per head additional income should be transferred to the cow/calf and stocker producers. This additional income transfer will cover the costs of whole chain traceability system and also provide additional profit that will motivate the cow/calf and stocker producers to participate in such a system. The feedlot also gains a net cost saving of $19 per head after transferring the additional income and paying its own traceability cost. Thus, by reducing feeding cost, a whole chain traceability system that provides information about the feeding efficiency of cattle can provide additional profit to the cow/calf, stocker and feedlot operators even after covering the costs of implementing the traceability system.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150458.

in new window

Date of creation: 2013
Date of revision:
Handle: RePEc:ags:aaea13:150458
Contact details of provider: Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Resende Filho, Moises de Andrade & Buhr, Brian L., 2006. "Economic Evidence of Willingness to Pay for the National Animal Identification System in the US," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25342, International Association of Agricultural Economists.
  2. Schroeder, Ted C. & Tonsor, Glynn T., 2012. "International cattle ID and traceability: Competitive implications for the US," Food Policy, Elsevier, vol. 37(1), pages 31-40.
  3. Moises A. Resende-Filho & Brian L. Buhr, 2008. "A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-site Lesion Control in Fed Cattle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1091-1102.
  4. Carlberg, Jared G., 2010. "Development and Implementation of a Mandatory Animal Identification System: The Canadian Experience," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(03), August.
  5. Dickinson, David L. & Bailey, DeeVon, 2005. "Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
  6. Dustin L. Pendell & Gary W. Brester & Ted C. Schroeder & Kevin C. Dhuyvetter & Glynn T. Tonsor, 2010. "Animal Identification and Tracing in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 927-940.
  7. Schulz, Lee L. & Tonsor, Glynn T., 2010. "Cow-Calf Producer Perceptions Regarding Individual Animal Traceability," Staff General Research Papers 35142, Iowa State University, Department of Economics.
  8. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred, 2004. "Food Traceability: One Ingredient in a Safe and Efficient Food Supply," Amber Waves, United States Department of Agriculture, Economic Research Service, April.
  9. Ji Yong Lee & Doo Bong Han & Rodolfo M. Nayga Jr & Song Soo Lim, 2011. "Valuing traceability of imported beef in Korea: an experimental auction approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 360-373, 07.
  10. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
  11. Loureiro, Maria L. & Umberger, Wendy J., 2004. "A Choice Experiment Model For Beef Attributes: What Consumer Preferences Tell Us," 2004 Annual meeting, August 1-4, Denver, CO 19931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Resende-Filho, Moises & Buhr, Brian, 2006. "A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle," MPRA Paper 467, University Library of Munich, Germany.
  13. Ortega, Carlos & Peel, Derrell S., 2010. "The Mexican Animal Identification System: Current Situation, Problems, and Potential," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(03), August.
  14. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150458. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.