Australia's kangaroo industry is worth about $270 million a year and until recently a major income stream came from the Russian market.

But the industry suffered a massive blow in August when the Russian government suspended imports, citing food safety concerns.

The industry is now struggling to cope, and wants the federal and state governments to help pay for an assistance package to restructure itself.

John Kelly, the executive officer of the Kangaroo Industries Association of Australia, says the industry has been forced to shed about 2,500 jobs across the country.

"Russia was taking about 60 per cent of industry productivity. That was all of our low value, lower grade cuts, so it certainly wasn't 60 per cent of industry from a monetary point of view, but it was a substantial market," Mr Kelly said.

"Without markets to place that manufacturing meat, that low grade product into, we can't afford to process kangaroos just for their fillets. So its importance outweighed the volume position I guess."

Central and western Queensland, home to the largest number of registered kangaroo harvesters, are the regions suffering the most.

David Arnold, manager of the Remote Area Planning and Development Board, says many individual harvesters have lost their only source of income.

"A large number of individuals - let's call them small business people - have had their major source of income [taken] from them," he said.

It's as simple as that and as an economic contributor to our region it's having an impact on the region."

Assistance

Mr Kelly says the problem is not insurmountable - it is just that the industry needs to restructure, and this cannot happen without government assistance.

Kangaroo harvesters want about $20 million in state and federal money to help people in the industry re-skill.

Mr Kelly says other industries receive assistance and he sees no reason that the kangaroo industry should not receive similar treatment.

"The clothing industry and the car industry and the banking industry, the building industry indeed have received substantial government support when they've been in a similar position over the last 12 months," he said.

"I guess we feel that the bush is worthy of similar support to the city from the Federal Government and indeed the state governments."

Federal Agriculture Minister Tony Burke says the solution is not in an industry restructure.

He says the Government is trying to expand the export market.

"Something in the order of 65 per cent of all exports of kangaroo meat were going to one country and that country was Russia," he said.

"Our focus is on trying to spread that risk. We're still negotiating with the Russians, trying to reopen that market.

"We've had recent success in China in being able to get closer to opening up market access to kangaroo meat in China, but for an emerging industry, export industry like kangaroo meat, we believe the pathways to be opening up markets is not structural adjustment packages."

Mr Burke has been pushing to reopen the Russian market as well, but has found the process a difficult one.

"In those meetings, there haven't been the capacity yet for Russia to be able to tell us precisely what it is they want changed which would then open the market," he said.

Queensland's Primary Industries Minister, Tim Mulherin, made no direct comment on the idea of a structural adjustment program but in a statement he indicated that there has been some action.

State authorities are holding consultations with harvesters to discuss food safety and market issues.