Vic tag subsidy lifts adoption rates

"We have run many information sessions on behalf of Victorian DEPI, looking at the on-farm benefits of electronic ID for sheep, and individual producers have also done their own research," he said.

"There is now an understanding that for not a lot of money and equipment, they can get some serious benefits and make more informed decisions in their business, as well as gain lifetime traceability."

Nathan says a lot comes from understanding the value of individuals within a mob of sheep for wool traits, lamb production and any other attribute of economic value.

"There is significant variation within a flock, and by knowing the best and worst performers you have the ability to apply selection pressure and begin to make real progress," he said.

"Those who have jumped into it and are getting the most out of it have known what they wanted to achieve. They have an understanding of what drives profits and the traits they have wanted to focus on."

Nathan, who is based in central Vic, has had clients who embraced the technology four to five years ago, and said some studs had been using the technology even longer.

As time went on, the technology has become cheaper, with hand-held readers available for $1000 to $2500, and panel readers from $2000 to $3500.

Nathan said the Vic government's decision to subsidise electronic tags six years ago had made a real difference in adoption rates, but it was not really about the cost of the tag but "buying an outcome".

"You are looking at around 90 cents for a one-piece tag and $1 for a two-piece tag subsidised," he said.

"A fully printed and compliant visual plastic tag is 30-35 cents so the decision is easier with a 60c difference compared to a tag which starts around $1.50 now, depending on manufacturer and state."

* Full report in Stock Journal, April 3, 2014 issue.