EURAMO residents chased an armed robber then jumped into their four-wheel-drives to surround a cane farm they thought he had fled to.

But to no avail.

A manhunt involving the Cairns dog squad and a helicopter failed to find the man who allgedly pointed a knife at a shopkeeper before bolting.

Shocked shopkeeper Robyn Newham said she was confronted by a balaclava-hooded man with a big knife in a brazen armed hold-up at about 3.15pm yesterday.

She said the robber pointed a knife at her and then climbed the counter demanding cash at the Euramo Store, south of Tully. 

"He said something I didn't understand and then he pointed a knife at me. It was a large one and he was only two metres from where I was standing," a bewildered Ms Newham said.

Disappointed residents who gave chase said they were sure the man was still holed up in the dense field last night but a police search revealed nothing.

They described the robber as being "wrapped up like a Taliban".

Police are appealing for help, saying the culprit made a big effort to ensure his identity was well-concealed before holding up the only shop on the highway-side town.

"He had a balaclava or shirt wrapped around his head, he was wearing dark clothing, sunglasses and gloves," Innisfail District Insp David Tucker said.

"What we do know is he was about five foot seven (about 170cm) (but) he was covered from head to toe."

Officers stopped cars to check their boots as surprised locals drove into town about 4pm to find their store cordoned off with police tape, police and residents surrounding a cane block and a helicopter buzzing overhead.

"The worst we ever get here is a couple of drunks having a shot at each other but suddenly there was this bloke wrapped up in black with a knife, running straight for the cane paddock," one resident said.

"You don't need to know what's happened.

"You know something’s up and you chase him."

Other locals said the man had dropped cash as he ran, and was almost hit by a car when he made a bee-line for the cane.

Ms Newham described clicking into self-defence mode as the robber wielded his knife and started to climb over her counter.

"I stopped him. I asked what he wanted and when he said money I just gave it to him," the long-time shop worker said.

"All I was thinking about was stepping back from the counter, keeping my hands by my side and things like that.

"He had a weapon and I didn't."

The robber urged her to hurry up and then grabbed the notes from her hand and fled, she said.

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