According to journalist, author and Fellow of the Australian Academy of Technological Science and Engineering Julian Cribb, the world passed its peak oil reserves in 2006 and if swift action is not taken, the industry will be in for a rude shock.

"Demand for oil is exceeding the rate of new oil discoveries by four-fold at the moment, and yet there will be 61 million new cars on the road this year," he said.

"The next fuel crisis could be next week or it could be in a decade, but we know from history that it is going to happen."

Mr Cribb was speaking at the SAFF Feast or Famine? Food Production: The Next 30 Years conference at the Adelaide Pavilion last week.

Drawing on statistics about oil content in food, Mr Cribb said humans consumed about 66 barrels of oil a year - a situation that had to change before fuel supplies faltered.

"Agriculturally produced biofuels are not a global solution because if farmers grew enough biofuels for their own use alone, that would cut the world's food production by 10 per cent," he said.

"If they grew enough to support the truck industry that transports their food to market, that would cut world food production by a third.

Mr Cribb said there was a need for a new energy source, particularly for agriculture.

"It could be hydrogen, solar-powered tractors or biofuels produced from farmed algae. It is feasible to make fuel out of crop waste as well," he said.

Mr Cribb said that during the fuel crisis of the 1970s, grain prices went up by 200pc to 400pc, but if oil was to increase to about $300 a barrel, consumers would be facing $500 shopping trolleys and farmers would find it hard to continue with their enterprises.

Queensland Independent Senator Bob Katter said he wanted laws in place to encourage ethanol production in Australia.

He said most European countries, parts of North America and countries in South America supported ethanol with legislation while China and India were implementing policies.

* Full report in Stock Journal, September 15 issue.