Federated Farmers says drought conditions in some parts of New Zealand have the potential to drain several billion dollars from the economy.
Northern and eastern parts of the country are parched due to windy dry weather. Irrigation bans are in place in some regions.
Federated Farmers says the last significant drought period two years ago cost New Zealand almost $3 billion in lost earnings.
President Don Nicholson says there is poor grass growth in Northland, Otago and along the East Coast.
Some farmers are being forced to sell their stock or stop their cows producing milk.
Mr Nicholson says the whole economy will feel the financial impact of lost dairy and meat production.
