AgForce Calls for Competition in NLIS Tag Market

AUSTRALIA - Around 95 per cent of the tags currently used by Queensland producers under the National Livestock Identification System (NLIS) are being produced by just two companies.
calendar icon 3 July 2008
clock icon 2 minute read

AgForce Cattle has made it clear that it is keen for more competition between manufacturers of the devices used to electronically identify the 11.7 million cattle in the state.

AgForce Cattle director Steve Taylor said NLIS has been compulsory for several years and two main sellers have secured a large proportion of the market, with smaller companies only making up a minor market share that has been unable influence pricing.

"What is now clear is there is a duopolistic market for NLIS tags in Queensland"
AgForce Cattle director Steve Taylor

Mr Taylor said the Queensland Department of Primary Industries and Fisheries (DPI&F) predicted the NLIS Innovation Grants would bring down tag prices by as much as 60c/tag, by introducing greater competition but this reduction is yet to be seen across all brands.

“What is now clear is there is a duopolistic market for NLIS tags in Queensland with the top companies holding the vast majority of the market share,” Mr Taylor said.

“What will decrease prices is greater competition and we need to encourage that.

“Buyers should look for alternative supplies of tags, look to other retailers, other tag companies and make sure they are considering all the options when purchasing tags.

“Producers should remember that all tags available for sale have been reviewed by the NLIS technical committee and passed rigorous testing and they are accredited by DPI&F.

“If the NLIS tag manufacturing companies see the market dynamics changing they will adopt alternative pricing strategies, most likely reducing prices and we may eventually see consistent price reductions.”

Mr Taylor said in a positive move for producers, the DPI&F have recently announced the range of rebates designed to assist cattle owners meet NLIS requirements have been extended until the end of the year, or until the funds are used.

Allison Crook, DPI&F General Manager (Animal Biosecurity), said although the department had received numerous applications for NLIS rebates, it did not use up

TheCattleSite News Desk

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.