Data Capture Adds Value
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By Megan Edwards
Cattle producers in the U.S. have access to multiple technologies and measurements to improve cattle and beef quality and performance, yet price discovery remains locked in an antiquated system that often leaves buyers and sellers frustrated.
The developers of BlockTrust Network, for instance, call the cattle industry one of the few large industries in the world still unable to share critical production data.
That could soon change if the promise of blockchain technology delivers on an industrywide basis as those tech-savvy entrepreneurs believe it will.
Launched in 2016, BlockTrust Network was designed to help create more transparency in the livestock market. Last year a pilot project was conducted with Livestock Marketing Association (LMA) members to demonstrate how blockchain technology could help leverage voluntary capture of data moving through auctions.
BlockTrust uses electronic identification tags (EID) on cattle and tracks cattle as they move through each industry sector. The data capture can be as much or as little as a producer desires, but examples of valuable information would include vaccinations, health events, nutrition or genetics.
Blockchain technology can capture organically generated data in an “unchangeable string of entries,” says Mike John, principle of Health Track Beef Alliance, formerly of MFA Health Track, a partner with Blockchain Trust.
Each time an identity tag is scanned, and the user is a subscriber to BlockTrust, the information of that animal can be uploaded with APIs (application programming interface) so that the data is only entered once. That data is then part of BlockTrust’s web portal, MarketTrust, and the data can then be viewed by buyers.
Market Value
Kristen Parman, vice president of LMA Membership Services says, “Through this pilot project, we established what data capture and technology would be necessary to utilize a program such as BlockTrust, and we believe we proved that the auctions can, if there is a market driven demand, help our consigners to better leverage their data.”
Blockchain technology allows the sharing of data up the supply chain, with the potential of creating an added market value for the cattle. During the project, feeder cattle at a series of special auctions were voluntarily tagged with an EID, and attribute data was collected for each consignment. Most of the calves tagged during the project were tagged upon arrival at the auction, which proved to be problematic.
“As the temperature rose and total sale sizes increased, we had to make the decision to tag fewer animals, otherwise it presented too great a risk to the animals and auction staff,” Parman explains. Heat, stress and additional handling can cause injuries to both the animals and the workers involved.
The timing for collection of attribute data such as herd management, vaccination protocol and genetic merit were also identified as an area for potential improvement.
“We were better able to inform buyers of the attributes at the time of sale and prepare the data for interface into BlockTrust when the data was collected in advance of sale day,” Parman says. “This is another example of how the auctions and producers can be most effective when they work together to prepare a marketing strategy.”
Despite setbacks, Parman remains optimistic.
“We are continuing to monitor the demand for this data. Consumers want some level of information about where their beef comes from, but others up the supply chain also want the data to improve their own profitability, and producers want to know that they can be paid for their efforts,” Parman says.
Further, the future use of blockchain technology in livestock auctions comes down to relationships. There must be a market relationship that recognizes value for cattle producers of all sizes to expand the technology through all sectors of the beef industry. The auctions will help producer customers maximize the value of their cattle through this or other programs.
“The key is in buyer demand that equals dollars to livestock producers,” Parman says.
Another BlockTrust Network partnership was recently announced by Vytelle, an independent in vitro fertilization company, and curator of the world’s largest feed efficiency database.
According to Vytelle, the partnership gives buyers more insight into the feed efficiency of feeder groups, creating a more profitable and sustainable business. The collaboration connects the seedstock and feeder sectors, enhancing transparency in the supply chain.
“The opportunity to classify cattle individually based on their genetics and performance through harvest will unlock markets and value for smaller producers to participate in quality-driven sustainable supply chains” explains Gregg Barfield, CEO of BlockTrust Network.
Sustainability
The use of blockchain technology can also aid ranchers implementing new management practices aimed at creating a more efficient environment and boosting sustainability metrics.
“When you add the DNA values for performance and carcass quality to the ability to communicate those values downstream, the knowledge of average daily gain, days on feed and carcass quality in a market that will reward methane reduction,” John says.
Being intentional with breeding increases sustainability to a rancher’s operation, allowing the beef industry to be more efficient.
“There is no doubt in my mind the rewards for participating in a blockchain environment will be significant,” John says.
Additionally, John believes the food service industry and retailers are hungry for beef with a quality story. More now than ever, consumers want to know where their food comes from, and having this information creates a higher market value for the seller while creating a more transparent story for consumers.
Lasting Impacts
Industry analysts believe blockchain technology can create a long-term, positive impact. The flow of information from sector to sector creates added market value for producers while helping them choose more sustainable traits to incorporate into their cowherds.
Providing a more transparent story from farm to table will also help build consumer trust and boost demand for beef products. Expanding the use of blockchain technology will create a more efficient and valuable livestock marketing sector, which will continue to benefit producers throughout the chain.
