A new report suggests New Zealand's rural sector could earn up to $1.3 trillion extra in export revenue if it could become a "food bowl" for Asia.
The ANZ report looks at the opportunity available to Australia and New Zealand as a result of the shift in global economic growth to Asia and the increasing demand for protein there and in other emerging economies.
It says both countries could more than double the real value of annual agricultural exports by 2050, which would result in an additional $A710 billion for Australia and $NZ550 billion for New Zealand over the next four decades.
This could increase to $A1.7 trillion and $NZ1.3 trillion respectively if global demand for agricultural products grows faster, and if both countries boost production volumes and shift to higher value products.
ANZ general manager of commercial and agriculture Graham Turley says the potential rewards are immense, but there are significant constraints.
An investment of upwards of $200 billion is required over four decades, which would require capital from funds, equity markets or foreign investors.
As well as capital constraints, the report identifies barriers such as skill shortages, land and water use issues and unfocused research and development.
The ANZ report sees New Zealand's two-speed agricultural economy as another issue, with the dairy industry performing well ahead of other sectors, especially the meat industry.
