It's called precision fermentation - creating cow protein in the lab - and could replace dairy ingredients.
"That could create more income and could potentially create more demand for New Zealand products."
The worldwide drop in prices strongly affects the payout for local farmers.
"We are going to be doing a lot of work this year to go backwards financially."
The sector is desperate for new workers.
"It seems buyers have finally had enough of paying high dairy commodity prices."
The average price at the fortnightly global dairy auction fell to US$5039 a tonne.
Christopher Vila switched careers and countries to work in dairy farming in Ōhaupō.
ASB's forecast would boost revenue to about $13.6 billion for Fonterra's farmers.
