A Canterbury farmer and entrepreneur is hoping to transform the dairy industry in New Zealand and around the world.

Happy Cow Milk is raising funds for a "milk factory in a box" through PledgeMe.

The new device will allow on-farm pasteurisation and cooling and direct transport from the farm to cafes and retailers.

Founder Glen Herud told Tim Dower the aim is to farm and distribute milk ethically and sustainably.

He says a different dairy model is needed, so young people can start farming with five to 50 cows and make a good living.

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