According to an assessment of USDA's proposed National Animal Identification System program, there are economic benefits to be had for the U.S. animal agriculture industry.
Specifically USDA's Animal and Plant Health Inspection Service commissioned the study to provide comprehensive, objective economic information for producers. The study was completed by Kansas State University with help from Colorado State University, Michigan State University and Montana State University.
The study concluded that costs and benefits of implementing NAIS in both the domestic and international marketplace resulting from enhanced traceability could outweigh the cost savings that would result from animal disease control and eradication efforts.

Other main findings from the study include:

  • As a result of NAIS, the Federal and State governments' savings associated with administrating animal disease control and eradication programs are significant, but they are only part of the overall benefits.
  • For industry, the effect of not implementing some aspects of NAIS may result in losses as great as $13.2 billion annually due to reduced export market access.
  • NAIS implementation becomes more cost effective as participation levels increase and actually may not be economically viable at lower participation levels.
  • Traceability is becoming a global standard that will likely affect the United States' ability to compete globally.

View the study and supporting documents.
Source: APHIS,