A small number of Tasmanian farmers and companies are forming a joint bid to buyout beleaguered meat processor Blue Ribbon.

David Byard, local beef farmer and meat councillor for the Tasmanian Farmers and Graziers Association, confirmed that a loose consortium had been formed by up to five Tasmanian farmers, footwear maker Blundstone Pty Ltd and a local meat processor.

"Nothing is signed, sealed or delivered yet and so many things could go wrong," he stressed to The Mercury newspaper.

The group is currently in negotiations with an interstate meat processor to form a buyout bid for Blue Ribbon; market watchers suspect that the company is NSW-based Bindaree Beef, but this has not been confirmed.