New Zealand’s agricultural sector has five years before low-cost, third world markets start to undercut our commodity prices, according to accounting firm KPMG.

In its inaugural Agribusiness Agenda report, KPMG says countries in South America, Central Asia and Africa have the large-scale farming plus the cheap labour and abundant natural resources to price New Zealand out of the market.

KPMG Agribusiness chairman Ross Buckley says New Zealand needs to change its position in the global marketplace. Mr. Buckley says while companies like Fonterra have the global presence to withstand pressure from emerging markets, other key sectors like meat and wool need to change fast. He says New Zealand needs more investment in water, telecommunication and science and technology if it’s to stay ahead.