**NAIS: Modernizing Animal Health Protection**

*Remarks by Bruce I. Knight, Under Secretary for*

*Marketing and Regulatory Programs*

*Wisconsin Livestock Identification Consortium*

*Madison, WI*

*December 7, 2006*

Thank you, Robert (Fourdraine). I'm delighted to join you for your
winter meeting today to talk about the National Animal Identification
System, or NAIS for short.

Secretary Johanns has made it clear that NAIS is, and will remain, one
of his top priorities. I don't need to tell any of you how important it
is to everyone in the livestock industry to have a modern animal
identification system that will enable us to respond timely to animal
disease events.

We all know that the threat of a foreign animal disease outbreak in the
United States is real. Everyone can take appropriate steps to protect
their animals, but some risk remains.

We're all working to make sure that disease outbreak never arrives, and
we never have to put this system to full implementation. However, it's
impossible to completely eliminate the threat or predict when an
outbreak might occur, where it will hit or how severe it will be.

Many people have worked hard and long to lay the foundation for the
National Animal Identification System---including many of you in this
room. Nationwide, NAIS is a voluntary system that welcomes producer
participation in one or more phases from premises registration to animal
identification to tracing.

Here in Wisconsin, you've chosen to make premises registration
mandatory---and that's your option. We want this system to work for the
benefit of the producers within each state.

**[Where We Stand]{.underline}**

Right now, and for the next year or so, our primary focus for NAIS is
going to be on getting premises registered so farmers and ranchers can
benefit when we have information to share. The big push is on commercial
operations, but we're encouraging everyone who has livestock---even just
a backyard flock or a couple of riding horses---to register their
premises.

Secretary Johanns has set some challenging goals for NAIS---including
getting 25 percent of premises registered by the end of January 2007.
Today, we have more than 335,000 registered---out of about 1.4 million
premises. That takes us close to the first goal. But the ultimate
goal---having a critical mass of producers on board by the end of
January 2009---will be much more challenging. As I said, that will be
our priority for the next year.

**[Changes in NAIS]{.underline}**

I know we need to clarify some issues on NAIS. We've made some changes
in the system---and that's left some folks confused and unsure. But the
truth is we've made those changes in response to feedback we've received
from farmers, ranchers and our partners in the states and industry
organizations. And let me say that we've been very impressed with the
forward thinking and progressive attitude about NAIS among industry and
producer groups like WLIC.

We've been listening and making course corrections in line with what
we've heard. That includes making clear that at the federal level, NAIS
is a voluntary system. It's designed pure and simple to protect animal
health, to protect consumer confidence, to protect domestic and world
markets, and most of all---to protect producer economic investment and
income.

Producers can choose the extent of their participation. They can choose
to simply register their premises and stop there. We want livestock and
poultry owners to understand that registering your premises today does
not commit you to participating in the tagging or tracing phases of NAIS
down the road.

I want to talk more about Phases II and III of NAIS in a minute. The
animal ID component is now available---and I know many of you are ready
to go on that. It's being adjusted slightly while animal tracing is in
the development phase.

USDA, the states, private companies, producer organizations and the
marketing channels continue to partner on these phases. Before I get
into the details on the next steps, I want to address some concerns that
a number of you have raised.

**[Outreach and Communication]{.underline}**

To make NAIS successful, reaching out to producers and stakeholders is
essential.

Working with the states, APHIS has developed new communications
materials to provide information producers told us they needed before
they could make a commitment to register their premises.

Earlier in the fall, the agency held a two-day communications workshop
to share the outreach materials and key messages designed to enhance the
consistency

and effectiveness of premises registration outreach efforts. In
addition, on November 8, APHIS also launched a redesigned NAIS website
that better describes the system and why it is important. The
website---www.usda.gov/nais---includes a library of all the print
materials available as well as a section on "myths and facts" intended
to dispel misinformation.

Finally, on November 22, USDA published its draft NAIS user's guide on
the web for public comment. This document provides details on NAIS and
is the most up-to-date information resource on animal identification.

**[Confidentiality]{.underline}**

Let me turn to one of the concerns we hear about most
frequently---confidentiality. We've had farmers ask: Are you going to
track my animals on my farm? Are you going to give out my private
business information in response to Freedom of Information requests?
Will other federal agencies have access to information about my
operation?

The answer to all these questions---and many more we have received---is
NO. We have specifically built safeguards into NAIS to ensure that
private business information is safeguarded.

Animal identification and tracing information will be kept in state and
private databases like the WLIC Information System, not with USDA. It
will only be accessed when there's a need to trace animals in a disease
situation.

Secretary Johanns has said repeatedly that USDA will protect farmers'
private information. We take our responsibility for confidentiality
seriously.

We will not betray the trust that farmers and ranchers place in us
through NAIS. That trust goes to the core of the development of NAIS as
a true partnership.

**[Costs]{.underline}**

There's also been some concern about costs for NAIS. As I said, the
first step---premises registration---is free. But for those who choose
to participate in the second phase---animal identification---there are
costs involved.

Our goal is to keep costs as low as possible by encouraging a wide
variety of options for identification devices. As more industry working
groups complete recommendations for their species, we expect more
companies to develop products to meet those requirements.

In Phase III, state and industry organizations will maintain the
databases to enable animal tracing. Again costs will vary, depending on
the services the producer chooses to use.

Competition among databases should help to keep costs down. We expect
the payoff for producers to come as the market begins to pay a premium
for animals whose history is known.

**[Phase II]{.underline}**

As I said earlier, our primary push for the next year is premises
registration. But at the same time, we are moving forward on the next
two phases.

As you know, animal identification is currently available for some
species, but not all. The states and private industry continue working
on this component.

There are two potential options for animal identification---individual
identification and group or lot identification. Only animals that move
from their original premises to locations where they come into contact
with other animals---such as livestock auctions, feedlots or
fairs---need identification. Those that just move from their premises of
birth to custom slaughter don't require identification for health
purposes.

With the NAIS numbering system, USDA allocates the 15-digit animal
identification or group numbers to manufacturers authorized to produce
the identification devices. USDA will authorize manufacturers, industry
organizations, service providers and states to maintain databases on
animal identification numbers issued.

These databases are scheduled to become operational next April. Until
then, USDA is maintaining the distribution records.

Keeping information on distribution of the animal identification numbers
or AINs in state or private databases rather than USDA's AIN Management
System is part of USDA's effort to respond to producers' concerns about
privacy. Handling the information this way helps reassure producers
concerned about confidentiality, and, we believe, will help increase
participation in NAIS.

Some people have asked how the AIN devices will be integrated with
identification requirements of other USDA animal health programs. NAIS
identification devices are official and can be used for most regulatory
programs, including interstate commerce.

Some programs, like TB, are already using AIN tags. AIN tags are an
option for sheep and goat producers in the Scrapie program, but the
current Scrapie tags based on flock and herd management ID remain an
official number and identification option. We will be revising the
identification requirement for the Brucellosis calfhood vaccination
program to allow the use of AIN tags, if the producer prefers.

But keep in mind, no previously recognized official identification
system has been discontinued. However, we will continue to evaluate how
systems can be standardized, integrated and used for all programs.

I want to say one more thing about the identification devices---and that
is that USDA has established a technology-neutral position on these. We
want to leave it up to producers and the market to decide which
identification methods to use.

Several species---bison, cattle and equine---have recommended using the
ISO-compliant radio frequency identification technology. So, while not
selecting or requiring a technology, APHIS recognizes the importance of
standardization to ensure compatibility across vendors. Standardization
makes it possible for one device reader to read RFID devices from
multiple manufacturers.

Therefore, RFID devices for NAIS should meet ISO 11784 or 11785.
Additional new technologies may emerge, and APHIS will work with the
American National Standards Institute to facilitate these---including
pilot or field trials.

We want NAIS to advance as technology moves forward. But we will do
everything possible to avoid a business practice of planned
obsolescency.

**[Phase III]{.underline}**

Let's turn now to Phase III---animal tracing. States and the private
sector will maintain records to permit animal tracing in the case of a
disease outbreak.

Producers will be able to choose an animal tracing database to report
animal movements that might pose a significant risk of disease
transmission. Again, this is where competition among various databases
can help minimize costs and maximize confidentiality.

Each of the databases need hold only a minimum of information for each
animal---the premises identification number, the animal identification
number, date of the event and the event itself---move in or move out.
Databases can include more information, such as the species, age and sex
of the animal. But this information is not necessary for animal health
purposes. Since database creators and providers may offer additional
services, costs will vary.

Animal health officials will only request animal movement information
from these databases when there is a risk to animal health. We have
identified a few specific situations when animal health officials will
seek information from these databases.

Triggers for access include:

-   An indication or confirmed positive test of a foreign animal
    disease,

-   An animal disease emergency, as determined by the Secretary of
    Agriculture or state departments of agriculture, OR

-   A need to conduct a traceback or traceforward to determine the
    origin of infection for a program disease such as Brucellosis or
    tuberculosis.

Over the next few months, we will be working on technical requirements
to integrate private and state animal tracking databases with NAIS. We
expect to complete the Animal Trace Processing System early next year.
Already we have 10 interim tracing databases participating in the
development of the interfaces with the NAIS---including the one that the
Wisconsin Livestock Identification Consortium operates on behalf of the
Wisconsin Department of Agriculture and Consumer Protection.

**[Conclusion]{.underline}**

Over the past year, I believe we've made significant strides with NAIS,
making some needed changes in response to feedback from producers. We've
made progress getting premises registered. Wisconsin has played an
important role in that effort with nearly 54,000 premises
registered---including the vast majority of commercial producers.

We still have work to do in finalizing the next two phases---animal
identification and tracing. But we are moving forward in partnership
with states and industry groups, building on the foundation that has
been laid over the past several years.

The good news is that NAIS is coming together. The structures are in
place or nearing completion to make it the answer to our need for a
modern system to protect animal health by enabling rapid traceouts and
tracebacks when a disease outbreak occurs. In the end, NAIS will be
successful because farmers, industry organizations and states recognize
its value, support it and participate in it.