23/08/2009 (3News.co.nz) - Dairy farmers are being blamed for the destruction of tropical rain forests. New Zealand cows ate more than 1 million tonnes of palm kernels last year - a quarter of the world's total consumption of the palm oil by-product.

Environmentalists say the trade is a death sentence for endangered orangutans.

New Zealand dairy farmers are now being held partly responsible for turning the once-lush Indonesian rainforest into a charred, smoking wasteland.

"Clear felling the rainforest, some of the last great rainforest, in order to feed dairy cows I think is environmental suicide," says Green Party co-leader Russel Norman.

Last year, local dairy farmers imported $300 million worth of palm kernel. It is a by-product of palm oil production, used to feed cattle.

"New Zealand dairy is sold overseas as clean and green, with cows on green pastures, and so if people realise that in fact those cows are being fed on a product of the destruction of the last of the great rainforest, it will be extremely damaging," says Mr Norman.

Pictures provided by Greenpeace show the devastation caused by the palm oil industry. It is also blamed for killing orangutans.

But farmers say they are not accountable, because palm kernel would be thrown away if not used as cattle feed, and dairy giant Fonterra claims much of what is imported here has no negative impact on the environment.

Palm oil products have already caused much controversy this month. Last week Cadbury bowed to public pressure and stopped using palm product in its chocolate.

Environmentalists say dairy farmers should follow the company's lead and find something else to feed their cows.