Food and Livestock Tagging Expected to See Bumper Gains

However, Harrop states, a lag in adoption is not seen once a government becomes involved. In 2006, for example, the Chinese province of Sichuan financed the use of HF ear tags on 10,000 live pigs in Qionglai city. The tags were provided at a cost much cheaper than the price of low-frequency (LF) tags that have been standard in the rest of the world. By underwriting the system, the government took the financial burden off the farmers. It has not, however, deployed a province-wide tagging program, or set a date requiring the tagging of pigs.

In addition to mandating the use of RFID tags, Harrop says, governments around the world are placing big orders for the tags. The drive for RFID adoption is also coming from product suppliers more than retailers, he says, citing Leche Pascual, a Spanish food product supplier currently tagging 200 million packets of dried eggs. "They [Leche Pascual] want the tagging and are prepared to pay," he says. "It's indicative of the large amount of stirring in the market outside of the United States."

The benefit for those operating in the food supply chain is more immediate than for those selling other products, since livestock disease control and protection from contamination and spoilage is so vital to a nation's food supply. In 2012, the report predicts, more than $1.4 billion will be spent worldwide on tags for food products.

According to Harrop, the country to watch most closely may be China. The number of chickens in that country is higher than the total throughout the rest of the world, he says , and disease control is a major Chinese concern. China is already the largest RFID market, in fact, partly due to a national ID card system for adults that incorporates an RFID chip containing data about the cardholder.

The United States, Harrop says, was initially at the forefront of RFID technology deployment, but has since lost that status, with no nationwide tagging program currently in place. "The U.S. is largely in denial about food safety," he says. "I think those sitting in the U.S. get a false impression that nothing is happening with RFID."

For governments, however, the benefits of deploying RFID are clear, he states. "If there is a major terrorist attack or accidental infection that rages out of control, a government can fall. That is the thing that makes governments get involved."