Public pressure could force governments to shut down Australia's lucrative live animal export trade, Labor warned on Sunday.

"If it comes to the point where the Australian public do not accept that animal welfare concerns are properly being met, governments of any persuasion will be faced with a difficult decision and will probably be almost forced to shut it down," Labor's agriculture spokesman Kerry O'Brien said in a debate on ABC TV.

Agriculture Minister Peter McGauran called the warning "frightening".

Senator O'Brien later said he had been referring to a hypothetical situation only.

"While referring to a hypothetical situation where the public might be of the view that the industry was not meeting appropriate animal welfare standards, I indicated that Labor would work with the industry to get the settings on animal welfare right," Senator O'Brien said.

Senator O'Brien said his priority was farmers and ensuring their interests were properly addressed.

"We understand the dynamics of the industry and we want to work with the industry, but if there are issues that can be better dealt with, and I think there are, then we need to work with the industry to get the settings right," he said.

Mr McGauran said his Labor counterpart had dropped a "bombshell".

"He has just said ... 'If the pressure gets too much then the industry will have to stop'.

"The idea that the Labor Party would cave in to an organised extremist campaign and stop the trade is frightening ... that you would cave in to that instead of meet the challenge, educate the general public."

Mr McGauran said he completely supported the live export industry and it would continue under a coalition government.

"(Australia) operates the world's best practice," he said.

"I think we've got to stop apologising for it - we lead the world."

But Senator O'Brien said Mr McGauran was wrong if he did not think that poor animal handling practices in destination countries were not a serious concern.

"A minister who is not committed to the best animal welfare standards possible for our live export industry and is content to simply claim things are good enough as they are, is not the sort of minister Australia needs," Senator O'Brien said.