Due to changes in the livestock sector and the rise of consumer demand for comprehensive and integrated food security and safety, there has been a concern on the use of farm data in enhancing animal traceability and decision-making by farmers and other decision-makers in the livestock sector. To ensure high production through effective decision-making and auditable standards, producers are required to have better traceability and record systems. Therefore, this study aimed at (1) reviewing the current recording/data management and animal traceability systems used by small-scale farmers in developing countries and (2) analyzing how data management systems should be designed to enhance efficient decision-making and animal traceability from farm to fork. This study found that, still, a majority of small-scale farmers do not keep records leading to poor decision-making on the farm and policymaking. We also found that those who keep records do not store their data in electronic format, which again poses another challenge in data analysis. Moreover, this study found that the majority of traceability tools used by farmers in developing countries do not meet international standards based on tools they use for tracing animals; farmers were reported to use tools like branding and ear tagging, which provide very little information about the animal. Such tools lack the capability to keep track of useful information about an animal, e.g., information about feeding and animal health. In conclusion, this study recommended a better electronic system to be used at the farm level to facilitate data analysis, hence promoting informed decision-making and adherence to the international animal traceability standards. Otherwise, there is a need for researchers to conduct more studies in developing different analytical models for exploring on-farm data in order to improve the decision-making process by farmers and other stakeholders.