The Sheepmeat Council of Australia is concerned producers are becoming confused about what sheep identification system they may face in the future and on what grounds it is being implemented.
Council president, Kate Joseph, says that the confusion has arisen as a result of publicity surrounding the June 2008 European Union (EU) audit.
"As I understand it the EU audit raised concerns that individual animals could not be properly identified to their last property," Ms Joseph said.
"The Australian Meat Industry Council (AMIC) and Australian and Quarantine Inspection Service (AQIS) have now agreed on a method to overcome the problems identified.
"As a result, I don't see the EU shutting their doors on meatsheep supplies from Australia."
However, the Council says there is a need to improve current sheep traceability in Australia, but it says the introduction of the Sheep and Goats National Livestock Identification System was not a result of the EU audit.
"The recommendation is not a response to the EU audit but rather findings from the Sheepcatcher report that reviewed the performance of sheep traceability," Ms Joseph said.
"Unfortunately, the EU audit issue may have been used to promote specific interests in areas of electronic identification, misleading producers."