The Swiss native said that was one of three areas - alongside top coaching and the right developmental environment - that was key to honing the football talent in New Zealand.
Exposing players to regular top competition could be challenging for both financial and geographical reasons, he said.
However, it was a case of finding solutions to suit the environment and overcome the barriers.
The national premiership was making progress, but it was important to view it against what other countries were doing.
Top professionals overseas were playing 50-60 games a year, and top young players were playing 30-40, he said.
That regular competition made a difference when it came to top-level games and learning to play at the next level.
"You compare to international standards and see how many games a young player is playing over a year," he said.
"That's where you have to aim at.
"Of course, it's difficult to establish and you have to go step by step.
"But that must be the goal at the top level and at the youth level."
He felt the national premiership was the level young players within New Zealand should first aspire to play in.
After making a presence there they could look to break into the Wellington Phoenix and the A League.
From there they could make the jump to the top leagues in Europe at the end of the development pathway.
However, it was important not to try too much too soon, he said.
"I think if you go step by step and you plan your career carefully, you cannot guarantee, but [can] be more sure you're ready for the next step.
"If you leave too early and you sit on the bench somewhere in an overseas league, you might be better off playing in your environment until you're ready."
Making the World Cup will always be a focal point for the public and Schmid felt the All Whites had a shot.
There were some quality young players coming through, he said.
Continuing to work and getting them exposure to be ready for a crunch qualifier would important with an eye to both 2022 and beyond.
