The Government says it has had issues with the program for several years, including too few children being successfully adopted.
But the president of the Australian African Children's Aid Support Association, Mark Pearce, says the Government has given up too easily.
"People are just devastated and in shock about the decision that's been made... it doesn't fit nicely in the way that Australia might want something to be done and I think they've decided it's all too difficult for them," he said.
Mr Pearce says up to 100 families in the program, including his own, have been left devastated by the decision.
He says he and his wife had been trying for six years to adopt a second Ethiopian child.
"We're still processing it in our minds and our hearts at the moment and we're still quite shocked and upset by it all," he said.
The adoption group says it will lobby the Federal Government to have the program reinstated.
Australia to Stop Adoptions From Ethiopia
Reporting by ABC (Australia) News: