The devices are used to electronically identify the 11.7 million cattle in the State.

But AgForce Cattle director, Steve Taylor, said two main sellers have secured a large proportion of the market, with smaller companies only making up a minor market share and have been unable influence pricing.

Mr Taylor said the Queensland Department of Primary Industries and Fisheries (DPI&F) predicted the NLIS Innovation Grants would bring down tag prices by as much as 60c/tag, by introducing greater competition but this reduction is yet to be seen across all brands.

"What is now clear is there is a duopolistic market for NLIS tags in Queensland with the top companies holding the vast majority of the market share," Mr Taylor said.

"What will decrease prices is greater competition and we need to encourage that.

"Buyers should look for alternative supplies of tags, look to other retailers, other tag companies and make sure they are considering all the options when purchasing tags.

"Producers should remember that all tags available for sale have been reviewed by the NLIS technical committee and passed rigorous testing and they are accredited by DPI&F.

"If the NLIS tag manufacturing companies see the market dynamics changing they will adopt alternative pricing strategies, most likely reducing prices and we may eventually see consistent price reductions."

DPI&F recently announced an extension until the end of the year of the range of rebates to assist cattle owners meet NLIS requirements.

Allison Crook, DPI&F general manager animal biosecurity, said although the department had received numerous applications for NLIS rebates, it did not use up the entire budget, and hence the decision to extend the program so that more people can access it.