The dairy industry doesn't believe its competitive advantage in overseas markets is being whittled away by large scale farming practices in other countries.
Accounting firm KPMG's Agribusiness Agenda study says 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 says 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.
