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Farming sector organisations are warning that New Zealand's proposed emissions trading scheme could damage the economy.
Fertiliser company Ballance Agri-Nutrients says the scheme exposed industry to unfair international competition and could shorten the operating life of its urea plant in Taranaki.
Chairman David Graham said the design of the scheme inadequately addressed concerns.
"Ballance and New Zealand businesses will be exposed to the full cost of carbon at high allowance prices all too quickly," Graham said. "In fact, these firms are essentially being encouraged to shut down and leave New Zealand."
Ballance said carbon costs linked to fertiliser use should lie with the user, not the manufacturer or importer.
Dairy co-operative Fonterra said global greenhouse gas emissions could increase along with revenue of overseas competitors if the scheme was not changed.
Chief executive Andrew Ferrier said New Zealand was one of the most greenhouse gas efficient dairy producers in the world.
"If we have more constraints put on existing dairy production or growth of our production in New Zealand, other countries will fill the supply gap," Ferrier said.
"These other countries are likely to be less carbon efficient than us and so more emissions would be pumped into the atmosphere as a result."
Deer Industry New Zealand said it was convinced the scheme would not make any real difference to climate change while damaging the economy.
"The real challenge for New Zealand is to solve the challenges of emissions from agriculture."
