North Otago dairy farmer Robert Borst has been re-elected president of North Otago Federated Farmers.
In his report to the branch's annual meeting on Thursday night, Mr Borst said he believed New Zealand farming was on the verge of enjoying increased returns as the world population increased and available land to feed the increasing population decreased.
To reap the benefits, farmers had to maintain their advantage of being low-cost, pasture-based producers, he said.
Farming methods were coming under increasing scrutiny by non-farming people and industry groups.
"More than ever we need to ensure that we develop farming systems that are long term [and] environmentally sustainable," Mr Borst said.
The dairy industry was enjoying "exceptional payouts", although some of the extra returns were being absorbed by higher costs.
The meat industry was struggling to work in the best interests of farmers to get the best value from the products they were selling.
Until that was sorted out, there was a real concern about the sheep and beef industry, as a whole, going forward, he said.