THE National Livestock Identification System could provide cheaper loans for farmers if cattle and banking industry discussions go well.
Negotiations are still in the early stages but no changes would be made to increase the cost or complexity of using the NLIS system or affect the flow of trade.
Australian Banker's Association spokesman Stephen Carroll said NLIS could increase the value of cattle through traceability to be more readily used as collateral.
He said if lenders could trace their investment using NLIS, banks would hopefully lower interest rates and provide loans to farmers with fewer assets.
Meanwhile, a senior United States quarantine Official, Ron de Haven, has praised the Australian NLIS system during a visit to Australia Meat Holdings' (AMH) Dinmore facility in Brisbane last week.
Dr de Haven said he was impressed with how thoroughly AMH had adopted the principle of keeping track of animals from birth to after death.
Dr de Haven said the US would implement a system similar to NLIS in response to the clear commercial requirement from customer countries such as Japan within five years.