New Zealand's dairy industry still has competitive advantage

The dairy industry in New Zealand does not believe its competitive advantage in overseas markets is being eroded by large-scale farming practices in other countries.

Accounting firm KPMG's Agribusiness Agenda study said the agriculture sector has as little as five years before being undercut by large farming practices in places like South America and parts of Asia.

However, Dairy NZ strategy and investment leader for productivity, Dr Bruce Thorrold believes those competitors do not have the ability to catch up with the New Zealand dairy industry in that time.

He said it will take a longer than that for them to produce large volumes for export, and match New Zealand's high quality dairy products. Dr Thorrold agrees with the report's call for further investment in science and technology and increasing skill levels in the industry and on-farm.