Australia's greyhound racing industry's in a tailspin after footage emerged of trainers using live bait to encourage the dogs to run.

The practice of using live bait such a possums, pigs and rabbits tied to the lure was outlawed more than 20-years-ago.

And Australian correspondent Steve Price told Newstalk ZB's Mike Hosking the industry has been rocked by the revelation the practice is continuing.

Twenty trainers have been suspended, including a handful of the most successful trainers in Australia, because they feature on the footage.