Farmers need to accept a national animal identification scheme will be operating from later this year and start preparing, say those charged with its implementation.
The chief executive of the National Animal Identification and Tracing scheme (Nait), Russell Burnard, said the organisation was this year shifting from planning and talking about the scheme, to implementation.
"It's time has come," he said of Nait. "The majority of farmers we talk to, while not jumping for joy, are resigned in their acceptance."
Part of that growing acceptance was the belief Nait would enhance a response to a biosecurity breach.
Mr Burnard said the Government had introduced the necessary legislation to Parliament and Nait and the Ministry of Agriculture and Forestry were in discussion with the Australian National Livestock Identification System (NLIS) about the Australians delivering a similar traceability system in New Zealand to that which has operated across the Tasman since 2005.
"New Zealand has an excellent opportunity to benefit from the lessons learned from the experiences of NLIS in Australia," Mr Burnard said.
Agreement has been reached so Nait-approved radio frequency identification (RFID) tags will eventually replace existing primary tags used now in livestock.
He accepts Nait still has to convince farmers.
"The proposition is clear. Nait will come. It has the commitment of Government and industry leaders."
During the year, further testing of the system will take place, through meat works and other centres through which animals will pass.
That information will then be provided to farmers.
Nait has warned the costs of doing nothing were huge, citing a European Union ban of Brazilian beef imports in February 2008 due to deficiencies in Brazil's tracing systems.
Within weeks, the cost of the export ban on Brazil was $NZ430 million.
In 2001, a joint Reserve Bank-Treasury study calculated the cost of a foot-and-mouth disease outbreak on New Zealand at $10.65 billion over two years, while Maf Biosecurity New Zealand said Nait would reduce that impact by between 4% and 10% from being able to trace cattle and deer.
Farmers have complained about the costs of Nait, but Mr Burnard pointed out that Government and industry will share the operating costs, with the Government agreeing to meet the upfront capital costs of building the system and 35% of annual running costs.
Industry will meet the remaining 65% of costs through levies of about $1 an animal each year.
In addition to those levies, farmers will need to purchase Nait-approved RFID tags at a cost of about $2 per animal, in addition to the current tagging required as part of the existing bovine tuberculosis programme.
Saleyard companies, stock and station agents who act on behalf of farmers and processors, will also need to invest in tag readers to record individual animals entering their premises.
Nait estimates one-off costs for New Zealand's 45 meat processors to be $1.2 million and $6 million for setting up sale yards and stock and station agents, with annual running costs estimated at $1.3 million and $0.25 million respectively.
Nait facts:
• Cattle to be tagged from November 1, 2011.
• Deer to be tagged from November 1, 2012.
• Three-year exemption on tagging of capital stock that do not leave the farm.