Australian meat sales plunged 15 per cent due to public "revulsion" over animal cruelty in Indonesian abattoirs, a court has been told.

Former agriculture minister Joe Ludwig's lawyers have argued their client's decision to suspend live cattle exports to Indonesia was necessary to protect the wider industry's reputation.

Mr Ludwig ordered the suspension in 2011, following a Four Corners investigation.

A group of cattle farmers have alleged Mr Ludwig acted in a "reckless", "disproportionate" and "irrational" manner by suspending exports and they were seeking $600 million in compensation.

Neil Williams SC told the Federal Court the public reaction was "very widespread and very sustained" and Mr Ludwig needed to act to protect to boxed meat trade, which was worth up to $9 billion.

"The reputational damage to Australia was threatening the much more valuable boxed meat trade," Mr Williams said.

The court heard the 15 per cent drop in sales occurred in the week after the Four Corners story went to air.

The hearing, before Justice Steven Rares, was told Mr Ludwig suspended live cattle exports because he was not satisfied the industry could ensure animal welfare standards were upheld.

"Self-regulation, in respect to Indonesia, was no longer a viable option," Mr Williams said.

Minister allegedly dismissed warnings about ban

Meat and Livestock Australia's former chairman Don Heatley told the hearing he warned the minister not to proceed with a blanket ban.

He said he told Mr Ludwig a complete suspension would cause major problems for the industry and would not be well received by Indonesian authorities.

Mr Ludwig allegedly replied: "What would you know about Indonesia?"

Mr Heatley said he informed the minister there were five abattoirs in Indonesia that could meet international animal welfare standards and a complete ban was not necessary.

At one point, Justice Rares asked Mr Ludwig's barrister why the minister did not take a more targeted approach.

"Why is a blanket ban the only solution?" he asked.

"Because, your Honour, at the time there was no system for providing the requisite level of assurance," Mr Williams replied.

Mr Ludwig will not be called to give evidence.