USDA issues NAIS benefit-cost analysis
(4/29/2009)
The U.S. Department of Agriculture's Animal & Plant Health Inspection Service today released the results of a comprehensive benefit-cost analysis on the National Animal Identification System (NAIS). The study, commissioned to provide comprehensive, objective economic information for producers, was completed by Kansas State University, with assistance from Colorado State University, Michigan State University and Montana State University.
The objectives, as defined by the research team, were to estimate the benefits and cost of adopting NAIS by the livestock and poultry industries, as well as to determine how net benefits are likely to be allocated among industry sectors, consumers and government.
Some of the study's findings include:
* Economic benefits in both the domestic and international marketplace resulting from enhanced traceability may be greater than the cost savings realized during animal disease control and eradication efforts.
* For industry, the effect of not implementing some aspects of NAIS (maintaining status quo) may result in significant losses -- up to $13.2 billion annually due to reduced export market access.
* Implementation of NAIS becomes more cost effective as participation levels increase and actually may not be economically viable at lower participation levels.
"We've always known what the traceability benefits of NAIS are, and now, with this study, we can better delineate the economic benefits and costs of adopting NAIS," said APHIS acting administrator Kevin Shea. "NAIS is a long-term investment in not only emergency preparedness and response but also in our ongoing animal disease control and eradication programs, the competitiveness of our livestock in international markets and in consumer confidence in our food supply."
Additional highlights, including the benefits and costs by species sector, can be found in the "Key Findings" document on the NAIS web site. An executive summary and the entire report (400-plus pages) are also available for download at www.usda.gov/nais/naislibrary/plans.shtml.