It is feared housing developments are threatening New Zealand's fruit and vegetable industry.
This follows a report into vertical farming, where food is grown indoors in high stacks and the possibility it could replace traditional produce growing methods.
But Horticulture New Zealand environmental policy advisor Rachel McClung says the costs outweigh the benefits.
"Electricity for artificial lighting and temperature control, combined with a high capital investment and operational costs are just too high."
McClung says it will also limit the range of food to leafy greens and herbs, affecting our export market.