Lexington, KY - The Kentucky Beef Network (KBN) has taken a leap into the for-profit world with a new company, Integrated Traceability Solutions (ITS), LLC.
KBN has partnered with Livestock Exchange, an Australian company, to create a business focused on providing products and services that enable customers to efficiently capture market value related to unique animal identification, traceability and documented procedures, as well as meet regulatory requirements related to animal traceability.
"Since KBN was first funded by the Ag Development Board, we have been encouraged to find ways to make the organization sustainable," said John Stevenson with ITS. "Creating a for-profit company, like ITS, is how we hope to finally provide the sustainability for the KBN program."
Stevenson is quick to point out that the decision to enter into a partnership with Livestock Exchange was not one made quickly. In fact, it is based upon years of research and communication with Livestock Exchange owner Gary Edwards.
Seven years ago, it appeared as if the beef industry had a mandatory program bearing down on it, so Stevenson and then UK Integrated Resource Management (IRM) Coordinator Jim Akers were focused on how to implement the program in Kentucky. The two were attending the ID Info Expo and heard Australian Gary Edwards speak.
"When Gary started talking, Jim and I just looked at each other, because he was addressing one of the main concerns we had all along: the integration of data," explained Stevenson. "So we cornered Gary after that meeting and have stayed in touch since then."
In fact, Stevenson went to Australia with equipment dealers a few years ago to see how Australia was implementing their animal ID program. While there, he traveled around many of the stockyards, where he had the opportunity to see the Livestock Exchange integration components at work.
"Stockyard software is the hub of what Livestock Exchange does," explained Stevenson. "In fact, today 63 percent of the data that goes into the National Livestock ID system in Australia goes through Livestock Exchange software."
Stevenson and others working with KBN were impressed by what the Australians were doing in their National Livestock ID program. Even more impressive were the positive remarks everybody, from the basic cow/calf producers to the high government officials, had for the service and products provided by Livestock Exchange.
Stevenson explained that they stayed in contact with Gary as programs at KBN continued to develop, and a few years ago the discussions turned to the possibility of working together. That is when Stevenson and others at KBN began working on the ITS concept to take to the KBN Board.
"A public entity like KBN partnering in a for-profit company is plowing new ground for us, so we have taken our time putting all the pieces together," explained Stevenson. "The KBN Board approved the company earlier in the year, and now we are at a point where we have our first contract, with the Alberta government."
In Canada there is a mandatory animal ID program in place, and ITS has been hired to provide the equipment and the skilled individuals needed for the stockyards to meet the regulatory requirements in the Alberta province.
"The concept is that for X amount of dollars per head they give us a spot to work, and we will take care of the regulatory needs, relative to mandatory ID," explained Stevenson. "We have a contract through the end of June 2010 and potentially further than that if the project is successful."
Stevenson said he sees this first contract as a way to learn lessons about setting up the systems, as well as a great way to get the name out for the upstart business.
ITS products include auction market and cow/calf reporting software, custom applications for all industry segments, and RFID tag reading equipment from Aleis International, the world leader in RFID technology. Services that ITS provides include Process Verified Program for Age and Source Verification, database management, software, RFID devices, Aleis International RFID tag reading equipment, and consulting/training.
"ITS is fundamentally a service-based business that can incorporate the latest RFID products to help markets in all of North America meet their traceability needs," said Stevenson. "Yet, the goal for KBN is to establish a successful company to provide a sustainable income, so that we can continue to provide greater market access for Kentucky producers, not only now but into the future."