STRONG resistance from farmers has forced the US Government to dump the nation's controversial livestock identification system.
Last week's shock announcement came five years after the voluntary National Animal Identification System was established in response to consumer concerns in light of the 2003 discovery of mad cow disease in a Washington State dairy cow.
However, US cattle producers in particular were concerned with the cost, liability and privacy issues associated with the system.
The Obama Government said the NAIS would be replaced by a new plan, which was expected to take at least two years to develop.
Under the new plan, it is believed only animals moving across US state borders would require "free or low-cost" tags.
"I've decided to revise the prior policy and offer a new approach to animal disease traceability with changes that respond directly to the feedback we heard," US Agriculture Secretary Tom Vilsack said.
Meat and Livestock Australia and Cattle Council of Australia refused to comment on the US decision.
However, Australian Beef Association chairman Brad Bellinger said last week's announcement vindicated ABA's opposition to Australia's National Livestock Identification System.
"(It makes) Meat and Livestock Australia, the departmental officers and cattle councillors, who all insisted that Australia must have a mandatory (electronic) NLIS because the US were going to have it, appear dishonest and foolish," he said.
Mr Bellinger said he had spoken to numerous US cattle producers about the "real truths" of NLIS.
"Unlike Australia, their concerns were heard and respected," he said.
While Australia exports more than half of the beef it produces annually, the US has a relatively small export market.
Prominent Gippsland beef producer Bill Bray said the US decision to scrap its ID system wouldn't affect Australia's export markets.
"Compared with Australia, which exports 60 per cent of its beef, Americans (supply) almost all their domestic needs," Mr Bray said.
"I don't think the US decision will compromise or affect the Australian market at all.
"Besides, we have vastly different markets, with a large grass-fed market here, and (a large) grain-finished market in the US."
Dunkeld beef producer and Hopkins River Beef principal Sandy Maconochie agreed.
"It shouldn't have any effect on Australia," he said.
