The Cheshire Hunt is among those which feed the carcasses to its hounds. Many others both pick up the dead animals and dispose of them.
A Defra spokeswoman insisted any kennel taking dead animals had to upgrade to a knacker's yard - proving it had a viable future without hunting.
And she said: "Hunt kennels clearly have a useful role in disposing of fallen stock in some areas, but the quantity of material is relatively low compared to rendering and incineration."
The spokeswoman admitted an industry-run disposal scheme, costing of up to £200m a year according to farm size, was promised last year but was not yet up and running.
Westminster insiders expect the Hunting Bill to be brought back this summer, to rally Labour's troops after the expected drubbing in next month's local and European elections.
MPs voted overwhelmingly last July for a total ban in hunting, but the amended Bill was "talked out" by the Lords in the autumn.
Tony Blair has said would use the Parliament Act to overturn the Lords, if peers continue to defy the will of the elected Commons by blocking the Bill.
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