CATTLE transaction levies could fund the Cattle Council of Australia in its battle with animal activists.

The council is proposing to broaden its representation and secure its funding and future by seeking a percentage of the $3.66 marketing component of the $5-a-head transaction levy.

But, to avoid the plan being tagged as "compulsory unionism", producers opposed to the diversion would be able to opt out.

Their levy would then be used by Meat and Livestock Australia only for marketing purposes.

Council president Andrew Ogilvie said the proposals were a starting point for major reform and restructure of representation for Australia's grass-fed cattle producers. The Cattle Council was the best resourced of the National Farmers Federation's commodity groups, but Mr Ogilvie said its $1.3 million budget was unsustainable.

Affiliated state farm organisations contributed only $230,000. A further $540,000 came from the Red Meat Advisory Council, with the remaining $550,000 from sponsorships and government consultation.

Mr Ogilvie said the council would discuss the plan with those involved in the next two months, including state farm organisation and groups that have opposed council policy, such as the Australian Beef Association.

The discussion paper, released last week, does not outline what percentage of the marketing levy - or what amount - the council would seek to divert from the $3.66 marketing fee.

This fee raises $45 million in marketing funds.

One industry view is that the new body would need at least double the council's $1.3 million budget.

Victorian council delegate Leonard Vallance, who is also chairman of the Victorian Farmers Federation's cattle committee, was more blunt.

"The RSPCA has a budget of $90 million and the animal activist groups have millions of dollars of community donations," he said.

"How can we compete, with only $1.3 million?"

Mr Vallance said most of the council's work involved fighting animal activists.

Adoption of the proposals would require the support of the Government because of the required legislative amendments to the levy.

ABA chairman Brad Bellinger said his association did not oppose the idea of a new industry body that depended on part of the compulsory levies.

He said the Cattle Council's proposals however, did not go far enough.

"This is just a hybrid version, to use compulsory levies to prop up a council controlled by state farm organisations," he said.

Mr Bellinger said the ABA would release its national restructure plan within a fortnight.