Radio New Zealand - Te Reo Irirangi o Aotearoa

Biofuel drive will 'fundamentally change' dairying

Updated at 9:46 am on 27 April 2011

An agribusiness commentator says the drive to produce alternative fuels will lead to a fundamental change in dairy farming in the next five to 10 years.

Stuart Locke, who heads Waikato University's Institute of Business Studies, says the need to free up land to produce ethanol will put pressure on farmers to house cattle and feed out supplements, rather than graze cows on open pasture.

He says it will also force more consolidation in the dairy industry.

Mr Locke says housing cows in barns will also significantly boost dairy production and the amount of whey produced, which can be used to make ethanol.

Last week a new biofuel blend for use in V8 super-cars was launched. With 85% of it consisting of ethanol sourced from fermented whey off dairy farms, it's being promoted as being capable of reducing a vehicle's greenhouse gas emissions by between a third and a half.

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