The topic was raised during a $1.4 million funding announcement to help facilities roll out electronic identification tags for sheep and goats.

"Our investment demonstrates our commitment to this particular facility so that it can thrive well into the future," NSW minister for agriculture Tara Moriarty said at the saleyards on April 12.

The council-operated facility generates a staggering income which saleyards leader Les Warren said is a significant driver for the local economy.

"We held second in the nation for the price of lamb when they were at their peak, running them at $376 per head for exports," Mr Warren said.

"When our numbers are up to our projected half a million for sheep and lambs per year, we generate around $85 million and a lot of that goes back into our town.

"The saleyards are a great meeting place for farmers so we try and run the best facility we possibly can. I have to say I have an excellent team around me," Mr Warren said.

Griffith City mayor Doug Curran and Murray MP Helen Dalton indicated opportunities for possible future upgrades to aid the outlet into the future are being investigated.

"Council is working collaboratively with the stock and station agents and have had quite a few meetings recently about potential upgrades and other works that need to happen here," Cr Curran said.

"Les is exactly right - it's an $85 million injection into our community and the place itself is thriving.

"It's a shame how that sometimes comes on the back of drought or other disasters but certainly Griffith council is committed to seeing this facility improved," he said.

Mrs Dalton says the yards are integral to not only Griffith but surrounding areas.

"As I understand it's one of the biggest saleyards in the area; I don't think there's much further west from here," Mrs Dalton said.

"We are looking for more funding for more improvements and maintenance and one of those might be a cover over the yards.

"We have fantastic people on the ground like Les and his team, and we are looking forward to a future that's fit for purpose here."

The eID funding announcement comes following a previous $38 million support package - of which the Griffith saleyards have been included in - to support the state's robust biosecurity measures.

The latest announcement will ensure eID infrastructure is fit for purpose before it becomes mandatory on January 1 next year.

"At the Griffith saleyards we have already invested close to half a million dollars for electronic ear tags for traceability of disease," Ms Moriarty said.

"Now we have additional funds for smaller saleyards in the region that may not have been eligible in the first round.

"We are committed to maintaining our strong biosecurity record, demonstrated by our financial support for sheep and farmed goat eID."

In 2022 the NSW government called for sheep and goats to be electronically tagged nationwide amid the threat of foot-and-mouth disease.

The grant will open April 29 and close June 3 2024.

More information can be found on the DPI website.