Foodbank was facing the prospect of cutting its services to the needy after it was told about a redistribution of the relief budget which amounted to a funding cut of more than $250,000.

"I have listened and decided to increase the Food Relief budget by $1.5 million over the next 4.5 years," Mr Morrison announced on Twitter on Tuesday.

"This maintains Foodbank's funding at $750K/yr, with Second Bite and OzHarvest funded as announced last week."

Mr Morrison has also asked Social Services Minister Paul Fletcher to place more focus on delivering relief in drought-affected areas.

"Important that food relief in drought areas is delivered in a way that does not undercut local businesses. Minister will work with providers to get the right plan in place," he said.

Foodbank on Monday said its Key Staples program - which makes sure essential supplies like rice, bread and vegetables get to needy people - would be at risk with its federal government funds cut from $750,000 to $427,000 a year.

The program sees food manufacturers produce food using spare production capacity, while suppliers donate or subsidise ingredients, packaging and delivery.

"We are dumbfounded," Foodbank chief executive Brianna Casey said.

The government's total funding for food relief was to remain the same, but be split between three providers rather than two from next year.

Social Services Minister Paul Fletcher on Monday urgently asked his department for advice on why Foodbank was only notified of the funding change just weeks before the demanding Christmas season.

He also sought advice on options to provide additional funding to Foodbank to "assist in managing the transition to the new arrangements".

MONDAY, 6PM: DAYS before this city hits the streets to Run for a Cause the key reason for running has been dealt a federal funding blow.

Foodbank’s Key Staples Program – which supplies basics like rice, bread, vegetables and pasta to the most needy – will be almost halved under funding cuts confirmed on Monday.

A regional push is well underway for a food distribution centre, in partnership with Foodbank Victoria, to be based in Ballarat’s west. The Ballarat Foundation’s inaugural Run for a Cause on Sunday will be a major fundraising drive to establish the food hub, which needs $3.5 million to be operational.

Funding for Foodbank’s Key Staples Program will drop from $750,000 to $427,000 in six week’s time. This is the third federal cut to the program in four years. The government plans to split the difference with food rescue charities Oz Harvest and Second Bite, the latter which operates within Ballarat Community Health.

The Ballarat Foundation chief executive officer Matt Jenkins said increased funding on food relief should not be at the overall expense of other far-reaching programs.

“Locally, we’ll really notice the difference more compared to areas where all these organisations have a strong presence,” Mr Jenkins said. “Second Bite does a great job here but has a relatively smaller footprint.”

Foodbank Victoria distributed 32,194 kilograms of staple, fresh and frozen foods to among four charities in Ballarat last financial year. New research earlier this year reveled 12 per cent of Ballarat accesses food relief, including one in three children.

The proposed food hub would offer greater storage and more efficient distribution to frontline food relief.

Under Key Staples, food manufacturers produce items using spare production capacity and suppliers donate or subsidise ingredients and packaging.

Foodbank Victoria chief Dave McNamara said this was the key difference compared to food relief agencies. Mr McNamara said funding cuts would effectively mean 1.7 million less meals for Victorians next year.

“Run for a Cause highlights there is a huge obvious need for food help and we hope, if there is a good side to this announcement, more people understand what this can provide,” Mr McNamara said.

The Liberal-Nationals have pledged $1.5 million to create a food hub in Ballarat should they win next week’s state election. Labor is yet to commit to the project.

Ballarat federal MP and opposition health spokesperson Catherine King slammed the federal government cuts as “simply disgraceful” to helping the hungry nationwide.

Ms King said Foodbank was already working hard to help alleviate food insecurity in Ballarat and was set to only help more in working with The Ballarat Foundation to open a food distribution centre.

"This cut puts all of Foodbank's work at risk, which will leave more in Ballarat and around Australia in hunger,” Ms King said.

"Now is not the time for Scott Morrison to be stubborn, he needs to reverse this cut immediately."

"Run for a Cause is on this weekend in Ballarat to raise funds for those experiencing food insecurity. I'll be taking part, and I encourage everyone else to as well."

For details, or to register for Run for a Cause on Sunday, visit: run4ac.org.au.

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