The banning of cattle from grazing in Victoria's Alpine National Park has ignited concerns among Barmah cattlemen that their agistment in the Barmah State Forest and state park could be under threat.

Cattle will be banned from grazing in Victoria's Alpine National Park after current grazing licences expire, Premier Steve Bracks says.

However, grazing cattle elsewhere in the high country would continue, he said.

Most of the 61 grazing licences expire in August this year while the remaining four expire in June next year.

Barmah Cattlemen's Association president Kelvin Trickey said they would continue to fight any moves to shift them from the forest.

Mr Trickey rejected claims of damage to the forest and repeated an earlier challenge to environmentalists to tour the forest with him and show them the damage.

"My challenge has not been met yet," Mr Trickey said.

He said he talked to indigenous people who told him the forest could be shared.

The Barmah cattlemen run up to 1000 cattle in about 30 000 ha of forest.

In the Alpine region, the licences - held by 45 nominated licensees - allow 8000 head of cattle to graze in the national park, while another 10 000 head of cattle are allowed to graze in state forest outside the park.

Graziers will be given up to $100 000 each over three years to help with the transition out of the park and pay for agistment.

Victorian Environment Minister John Thwaites said the scientific evidence showed cattle damaged the alpine environment by trampling through the headwaters of rivers, causing bare ground and erosion, damaging sensitive moss beds, eating wildflowers and leaving cow pats.

State Member for Rodney Noel Maughan said the review process by the Alpine Grazing Taskforce was an "absolute sham" and raised serious concerns about the Victorian Environmental Assessment Council inquiry into red gum forests.

"This decision makes a mockery of the public consultation process," Mr Maughan said.

"It was demonstrated time and again during the inquiry process that mountain cattlemen had managed their high country leases with minimal environmental impact.

"The process for the Alpine National Park inquiry was an absolute disgrace and that gives us no confidence whatsoever that this inquiry will be any different.

"It is obvious that the Bracks Government wants to turn the river red gum region into a national park and if this happens it will spell the end for cattle grazing in the Barmah Forest as well."editor@countrynews.com.au