The Australian livestock industry may get a reprieve from the financial debacle posed by the six-month-cattle ban to Indonesia by tapping into the $5-million contingency fund of the Meat and Livestock Australia (MLA), said Agriculture Minister Joe Ludwig.

Agriculture Minister Ludwig said in the a radio interview over ABC that this can be the next best option and is willing to use his legislative rights to help the affected cattle industry.

"I'm prepared to exercise my legislative rights to direct the MLA to use funds to manage the immediate domestic supply chain for this industry," Senator Ludwig told ABC Radio's AM this morning.

He added that it is important that this industry will take responsibility for its own live export industry. MLA is critically placed to provide the support for the industry, he added

"The contingency fund is there for just that purpose. To provide for the assistance that is immediately needed in the supply chain around feed and fodder," he noted.

The MLA, however, has not been keen to release the said fund and officers are now in a meeting deliberating the best action to be done.

The fund is made up of levies charged to cattle producers by MLA and money provided by the Federal Government.

Senator Ludwig confirmed Bill Farmer, the former Australian ambassador to Indonesia, will carry out an urgent inquiry into the trade, looking at how animal welfare can be safeguarded in a long-term live trade industry.

Mr Farmer will report at the end of August, but Senator Ludwig would not be drawn about when he expects the six-month suspension to be lifted.

"I will wait to see what the report says, but in the interim, industry is looking at ways to ensure animal welfare outcomes as well around Indonesian trade."

ABC News Online also reported that, cattle producers affected by the export suspension are considering taking a class legal action against MLA through an industry organisation, the Australian Beef Association.

Spokesman John Carter says Meat and Livestock Australia must be held accountable for costing graziers millions of dollars.

"There is certainly discussion about a class action with regard to the loss of income which has occurred because of MLA's incompetence," he said.

He says the ABA is also "calling loudly" for a judicial inquiry into the whole meat industry structure.