THE Federal Government has been accused of favouring Australia's foreign-owned car makers while doing little to boost support to the nation's dairy farmers.

United Dairyfarmers of Victoria president Doug Chant said the Federal Government was pumping $6.2 billion into the ailing Australian car industry in the face of the global financial crisis.

Yet he said the Government had done little to boost support for the Australian dairy industry in the face of the same crisis.

Dairy giant Murray Goulburn has already announced it will cut its milk price by 39 per cent in February and its rivals are preparing to make similar cuts.

"I'm not happy with the level of direct (government) assistance," Mr Chant said.

"If we don't maintain viable dairy exports and prices then we'll see an exit of people from the industry."

"The tragedy is that prior to this (price slump) people were re-investing in dairying after years of decline."

Mr Chant said the contrast between the way the Federal Government treated the car industry and dairy industry was stark.

The $6.2 billion package for car makers comes on the back of existing annual tax concessions, tariff protection and direct government support worth $1.3 billion.

The Productivity Commission's latest Trade and Assistance Review shows car and parts manufacturers gained $1.3 billion in combined budgetary and tariff support in 2006-07.

In contrast, dairy farmers gained structural adjustment support (milk levy), drought aid and R&D support worth $336 million during the same period.

Dairy Australia's recent Focus reports state the dairy industry directly employs 40,000 people and indirectly supports another 60,000. The car industry employs 64,800 people directly and in allied industries.

Mr Chant said he was yet to sit down with other UDV members and thrash out what forms of assistance could be delivered to farmers and manufacturers.

However, Mr Chant said there were a range of options raning from more direct support to farmers to lobbying the World Bank to free up finance for developing nations trying to buy food.

"We haven't sat down and worked through our options, but I think the Government should be lobbying the World Bank to finance developing nations to buy our food," he said.

Mr Chant said dairy, unlike the car industry, was fully exposed to the global marketplace and delivered crucial export revenue.

Agriculture Minister Tony Burke was unavailable for comment.