A meat processor in south-west Victoria has suspended lamb exports to Russia to send a "strong message" to the country's president Vladimir Putin over the MH17 plane disaster.

The Malaysia Airlines passenger jet was shot down by a ground-to-air missile over eastern Ukraine, killing all 298 passengers and crew including 37 Australians.

It is believed Russian-backed rebels shot the plane down and world leaders, including Australian Prime Minister Tony Abbott, have been critical of Russia's response to the tragedy.

The Australian Lamb Group, based at Colac, has been exporting lamb and mutton to Russia for many years, and its managing director John Verrall said the decision was not made lightly.

"Australian Lamb Group wants to send a very strong message to the Russian president Mr Putin that we, as an Australian company will not abide the circumstances as they are currently unfolding with regard to the shooting down of flight MH17 and the recovery operations at the crash site," Mr Verrall said in a statement.

"It does have repercussions for our business, but we believe that we must stand up for the Australians who have lost their lives at the hands of separatists reportedly armed and supported by president Putin."

The company said it had several standing orders which would be redirected to alternative destinations as part of the decision.

The Australian Lamb Group, which processes up to 1.7 million lamb and mutton each year, also exports to China, the Middle East, and south-east Asia.

Action taken by Victorian company 'uncommon'

Ian Feldtmann, from the Victorian Farmers Federation, said he respected the stance taken by the company but said it was uncommon.

"I was surprised. I personally would like to leave sanctions to the Federal Government in how they wish to go about it," Mr Feldtmann told 107.9 ABC Ballarat.

He said if the Government imposed sanctions on Russia, he hoped it would not only affect the farming and agriculture industry.

"Producers are very disappointed, very sad about the plane that was shot down, but if we're going to make sanctions all of Australia needs to bear that brunt, and not just the livestock industry.

"It's something that needs to be thought through carefully about how it would affect people her in Australia, but that doesn't undermine the fact that this aeroplane is shocking."

Mr Verall said he hoped measures such as this would encourage Mr Putin "to do the right and decent thing".

"Sometimes it is easier for businesses to do nothing and to go about their normal operations independent of external world and political events, but I feel strongly that business can lend support and weight to the work of our government in a very effective and practical manner."