Pointy end of electronic sheep tag cost negotiations begin in 2023

A peak sheep industry body says current discussions around the cost of electronic traceability in the sheep and goat industry starts with proposing state and federal governments shoulder the two-thirds cost burden of electronic traceability.

Wednesday's Agriculture Ministers Meeting discussed not just sheep and goat traceability but keeping track of horses, donkeys and mules after heightened biosecurity concerns on all fronts.

The sheep and goat industry are working towards a January 2025 commencement of traceability that already exists with cattle, with the industry taskforce meeting on Monday.

Victoria implemented electronic traceability or 'EID' for sheep from 31 December 2017. Their model is being promoted nationwide by agriculture ministers and livestock representative bodies after serious concerns about diseases potentially coming from Indonesia.

Sheep Producers Australia CEO Bonnie Skinner told Flow the cost-sharing discussions would begin in earnest in the New Year:

"The process that's been going on the last few months has been to undertake the national costing exercise. The cost sharing discussions need to kick off next year, there's nothing firm on that. There has to be a recognition on the ongoing cost of the system that producers have to pay the price of tags, there's also the up-front infrastructure cost that the other parts of the supply chain have to wear and the ongoing maintenance costs.

"When we have conversations with other supply chain partners, with governments, everyone starts to talk: what's a fair split? - is it a third, a third a third between industry, state and federal governments? Certainly, equitable cost sharing has to be the foundation on which we have those discussions next year. $40 million in the federal budget is certainly a great way to start the cost sharing discussions."

Hear the full interview on the Flow podcast player below: