The vote by members, made at the NSW Farmers annual conference in Sydney, overturned the organisation's previous opposition to the measures and comes in the wake of the NSW Government flagging its support for the introduction of a national system.

NSW Farmers Biosecurity Chair Ian McColl said while an electronic tagging system could be helpful, it would not be a silver bullet for the threat posed by FMD.

"In the event of a biosecurity disaster such as an FMD outbreak, effective tracking would enable authorities to enact preventive measures promptly and minimise an outbreak," Mr McColl said.

"But we must remember this is not something that will replace strong biosecurity controls at our borders, and our members remain concerned about returning travellers and requirements at our airports."

Mr McColl said the introduction of a national system must have jurisdictional harmonisation, be affordable, and be developed in consultation with producers.

"Traceability reforms must ensure that the costs are effectively shared throughout the supply chain and with government," he said.

On Tuesday, NSW Minister for Agriculture said the NSW Government would propose a national transition to individual identification tags for sheep and goats to help bolster the country's defence against infectious diseases like FMD at a meeting with all Australian agriculture ministers on Wednesday afternoon.

"The FMD crisis in Indonesia, and its recent spread to Bali, is a significant threat to our livestock industry with the potential to cost the Australian economy $80 billion and send shockwaves through regional communities for years to come," Mr Saunders said.

"An effective national traceability system is critical to ensure NSW can continue exporting more than $1 billion in sheep meat each year.

"The introduction of a national system won't happen overnight. It will take time to get right, which is why it's important to start the conversation now."

The National Livestock Identification System already includes electronic identification of individual animals to allow tracing of cattle, but currently relies on a mob-based system for tracing the movements of sheep and goats.

Sheep Producers Australia CEO Bonnie Skinner said industry has been calling for a national electronic ID scheme for sheep.

"The rapid and reliable tracing of livestock plays a significant part in emergency disease response," Ms Skinner said.

"The faster animals are traced the greater the chance of controlling the disease outbreak and minimising its economic and social effects."