From Friday, all Australian livestock must be fitted with special machine-readable Radio Frequency Identification (RFID) devices that will enable whole-of-life identification and traceability of livestock from birth to slaughter.

According to Meat and Livestock Australia (MLA), the NLIS is important for food safety, product integrity and market access purposes.

The NLIS will give Australian red meat producers access to the European market and minimise the impact of animal disease outbreaks and residue incidents.

But many local farmers are not convinced.

Retired Young farmer Max Parker, local beef and dairy farmer Ron Nelson and retired livestock auctioneer Keith Wallace said the scheme imposed a lot of work on farmers for little gain, especially when it has a lot of hidden expenses.

Mr Wallace said the current system of tail tags worked, and the NLIS meant extra work for the entire livestock industry.

"And for no extra gain," Kangaroo Valley farmer Mr Nelson added.

"It's just going to create more jobs for over-educated bureaucrats," Mr Parker said.

He added that the European market was of little consequence to Australian livestock producers.

From July 1, farmers failing to fit livestock with the RFID devices before the livestock leaves a property will be fined.

This is a problem when farmers have more than one property, said Mr Parker, who moves cattle between his three properties.