Federated Farmers says New Zealand agriculture is missing out on opportunities because it is difficult to carry out genetic engineering research in this country.
Researchers in China and Argentina have found cows that, they say, have been genetically engineered to produce milk that is similar to human breast milk.
Federated Farmers dairy chairman, Lachlan McKenzie, says the research is an example of an area where New Zealand is falling behind.
He says other countries are making scientific advances that cannot be made in this country.
Mr McKenzie says it is difficult to conduct studies in New Zealand because of Government regulations and voceriferous opposition from anti-GE campaigners.