Saleyards operators would have to pay for the infrastructure, find the personnel and deal with the extra animal welfare issues that would spring from the change, Jock Laurie said.

The National Farmers’ Federation president told livestock market representatives gathered at Dubbo yesterday that Radio Frequency Identification (RFID) was “bunkum” - it would cost the agricultural industry a lot of money but not make sheep easier to trace.

His comments came as Dubbo City Council grapples with how to redevelop the saleyards, which generates 1.3 per cent of the city’s gross regional product or $170,000 each year. Mr Laurie urged sheep and lamb producers to improve their compliance with the flock-based system currently in place to neutralise calls for change.

The experienced agri-politician spoke about opportunities and challenges for farming beyond 2011 in his address to the Australian Livestock Markets Association conference yesterday.

World population growth and global food security gave the Australian farmer and grazier reason for optimism - if they could make those in power hear their voice.

“There is tremendous opportunity for Australia in the future if we get it right,” he said.

The carbon tax, the Murray Darling Basin Plan, coal seam gas pipelines and mining were all challenges that could make farming - and operating saleyards - difficult if the right policies were not made, Mr Laurie said.

While the National Livestock Identification System (NLIS) for cattle had “embedded quite well” after a lot of work from the industry, Mr Laurie was not positive about a similar scheme for sheep.

Under such a scheme, each animal would have to be scanned at the saleyards - 37,340 were yarded at Dubbo this week.

That would add costs, personnel, time, animal welfare and occupational health and safety issues, Mr Laurie said.

“It is crucial farmers support the current flock-based system and adhere to it so we are not forced to go to RFIDs,” he said.

Dubbo Regional Livestock Markets is Australia’s largest in terms of combined sheep and cattle numbers, but its sheep and lamb facilities are decades old.

Earlier this year the council ruled out selling the facility and it is now working on a concept specification that could be used as the basis to embark on a public-private partnership.