Profitability Potential Steers Producer Support of Traceability Efforts

( )

Traceability has the attention of lawmakers. In the last month, President Joe Biden signed an executive order that included a directive to USDA to consider new rules defining when meat can bear “Product of USA” labels to increase transparency for consumers. On the heels of this, Agriculture Secretary Tom Vilsack announced that USDA would work to restore the Packers and Stockyards Act in an effort to level the playing field for farmers and ranchers. 

But what do producers think? Farm Journal conducted a survey to glean livestock producers’ thoughts traceability in the United States. Consider these insights:  

U.S. producers are split over the need for a nationwide traceability system

According to the Farm Journal Traceability Study, 62% of livestock producers—a group that included beef, dairy and hog producers—said they were in favor of a nationwide traceability system. This is an increase over a February 2021 Drovers Pulse Poll of beef producers that showed 52% approved of a nationwide traceability system. Approval dropped to 43% in a dairy producer Pulse Poll. 

chart1

RFID is a lynchpin to traceability

The Farm Journal Traceability Study showed 33% of respondents use RFID. And, for those in favor of a nationwide traceability system, 42% use RFID in their operation compared to only 18% of those who oppose traceability. 

This has proven to be a controversial topic in recent years that includes a lawsuit to prevent mandatory RFID and another one to ensure USDA adheres to the Federal Advisory Committee Act (FACA) and the Administrative Procedure Act (APA). Even so, USDA maintains RFID devices will provide states and the cattle and bison industries with the best opportunity to rapidly contain the spread of high economic impact diseases. 

Chart 2

Profitability still drives the cattle market

Farm Journal’s Traceability Study dug into what would drive more producers to support traceability. The No. 1 answer: profitability. In fact, 68% of all respondents say they expect some level of return on investment for sharing their data, regardless of whether they are in favor of traceability.

But how much money are we talking about? For those in favor of a nationwide traceability system, 30% of respondents said that it should be $11 or more per head. For those opposed to a nationwide traceability system, that number jumps to 44% who expect $11 per head or more. 

chart3

What’s steering producers’ opinions? 

The top reason producers would participate in a traceability program is to track disease outbreaks. For those opposed, the second highest reason would be to qualify for a premium or branded program.

Traceability has two fronts: one to track diseases and one to address consumer issues that impact producers’ bottom lines. While consumers want to buy products that match their personal values, producers need a means to meet those demands that makes sense for their operations.

Contact Farm Journal to learn more information on this study and our commitment to traceability. 

chart4

Visit the Drovers Traceability Center for complete coverage.

 

Latest News

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.

How Ranchers can Feel More Energized and Reduce their Aches and Pains
How Ranchers can Feel More Energized and Reduce their Aches and Pains

We can’t care for our livestock, resources and families without caring for ourselves first. That seems even harder during the busy seasons, but it isn’t impossible and even one thing a day makes a difference.

Profit Tracker: Packer/Feeder Margin Spread Grows
Profit Tracker: Packer/Feeder Margin Spread Grows

Last week’s rally to new record prices pushed packer and feeder margins in opposite directions. Pork producer margins continue higher with prices now above year ago.

Spring Forward Horse Health with Vaccinations
Spring Forward Horse Health with Vaccinations

As horses are exposed to the environment, wildlife and mosquitoes that transmit the five core equine diseases, it’s important to follow the core equine disease vaccination protocol.