The World Health Organisation's International Agency for Research on Cancer (IARC) analysed 800 studies from around the world and found that processed meats such as sausages, ham, and hot dogs cause bowel cancer, and red meat "probably" does too.
It placed processed meat into its Group 1 category of carcinogens. Other substances in the group include alcohol, asbestos and tobacco.
"No, it shouldn't be compared to cigarettes and obviously that makes the whole thing a farce -- comparing sausages to cigarettes," Agriculture Minister Barnaby Joyce told national radio.
Joyce added that "the biggest thing is to make sure you get a balanced diet" as it was impossible for humans to avoid every cancer causing toxin in modern day life.
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"If you got everything that the World Health Organisation said was carcinogenic and took it out of your daily requirements, well you are kind of heading back to a cave," he said.
"If you're going to avoid everything that has any correlation with cancer whatsoever -- don't walk outside, don't walk down the streets in Sydney, there's going to be very little in life that you do in the end."
"Red meat such as beef and lamb is a critical, natural source of iron and zinc, vitamin B12 and omega-3 -- essential nutrients needed to keep the body and brain functioning well," it said in a statement.
"There is no reason to believe that eating beef and lamb as part of a healthy, balanced diet and lifestyle in 100 to 200 gram (four to eight ounce) portion sizes, three to four times a week as recommended in the Australian Dietary Guidelines, will increase risk of cancer."
Cancer Council Australia estimates that red and processed meats are associated with around one in six bowel cancers diagnosed in the country.
The IARC evaluation said "strong mechanistic evidence supporting a carcinogenic effect" for red meat consumption -- mainly for cancer of the colon and rectum, but also the pancreas and prostate, said the agency based in Lyon, France.
As for processed meat, including hot dogs, sausages, corned beef, dried meat like beef jerky or South African biltong, canned meat or meat-based sauces, there was "sufficient evidence in humans that the consumption of processed meat causes colorectal cancer.