A New South Wales government minister has appealed to fast food giant McDonald's to continue using Australian produce, saying the company appears to be abandoning local suppliers, according to the Australian Broadcasting Corporation.

Minister for regional development, David Campbell, said McDonald's spends more than A$600m (US$460m) a year on Australian products from about 100 suppliers but is now sourcing cheaper ones from New Zealand, India and Sri Lanka.

He said the 20% cost-cutting program is called Project Platypus and he has urged the company to keep using Australian potatoes, cheese and gherkins.

"I'm also sure that members of the chamber will join me in urging McDonald's to back our Aussie men and women on the land, especially in these tough times," he said. "Australian produce for Australian McDonald's - I don't want to see our Australian producers McDumped."