Announced by agriculture minister Gerry Ritz, the funding will go towards a database, which will "collect, maintain and manage information in accordance with national standards, federal and provincial regulations, and the specific needs and requirements of industry", according to Agriculture and Agri-Food Canada.
It is believed the new database would help to reduce red tape, as well as complementing the work carried out by the Canadian Food Inspection Agency, through its Traceability National Information Portal.
Ritz, said: "Our government understands that traceability is a growing requirement for many markets around the world. Strengthening our traceability systems allows Canada’s livestock sector to continue to deliver the high-quality, safe and reliable products that consumers around the world have come to expect."
Terry Kremeniuk, chairman of the board, Canadian Agri-Traceability Services, added: "Traceability plays a significant role not only in preventing and managing a disease outbreak, but also in accessing markets globally. By combining the best from two separate traceability databases presently operated by CCIA and ATQ, the state of traceability in Canada will be improved while reducing the costs for industry and simplifying data reporting for producers."