
Faced with the world food crisis and the failure of the Doha Round of trade talks, the Asia-Pacific Rim countries are the best hope to solve the crisis as countries in the group include major food-producers, New Zealand's special agricultural trade envoy said in a recent interview.
Alistair Polson said that cooperation among Asia-Pacific Economic Cooperation (Apec) members could alleviate the food crisis.
"Several nations in Apec are among the world's major food-suppliers. There is the potential for the members to alleviate food prices in the long run," he said.
He pointed out that economic cooperation in the bloc would not only increase agricultural productivity but also en-courage the exchange of technology and know-how to increase efficiency, allowing farmers to lower the cost of production.
Food prices are expected to increase following higher demand in the world market and continued relatively high fuel prices. Rising population also boosts demand and causes higher agricultural prices.
Apec consists of 21 Pacific Rim countries and regions that work together to promote the regional economy through cooperation in trade and investment. The countries in the group account for approximately 41 per cent of the world's population, approximately 56 per cent of world GDP and about 49 per cent of world trade.
The World Trade Organisation (WTO) attempted to reach a global trade pact at its latest meeting in Geneva after more than seven years of work on the Doha Round.
The meeting collapsed when members were unable to bridge their differences.
Polson said Apec members could move some of their agricultural production to areas that provided lower costs, which would lower food prices in the long run.
He also warned major food exporting countries including Thailand to be aware of rising non-tariff barriers such as those presented by concerns over food safety and animal welfare in developed nations.
He suggested exporters focus on value-added manufacturing for all goods, including commodities.
He noted that more than 10 per cent of the of New Zealand's agricultural export income came from value-added developments, including brand and packaging development.
"Exporters and producers must find the right niche and adapt technology to their production in order to increase value and make consumers recognise the product," he said.
Polson suggested that Thai tropical fruits had great potential to access world markets.
Asked about China's problem with food safety, in particular in the dairy sector, Polson said that the problem of China's tainted powdered milk could create an advantage for New Zealand's dairy exports as the country was known for its high manufacturing standards and record of food safety.
Polson said New Zealand's exports to the European Union, China and other countries in Asia were expected to grow.
According to New Zealand statistics, milk powder, butter, and cheese are the country's main export products and generated more than US$6.45 billion (Bt221.6 billion) in income last year, followed by meat and edible offal at $4.6 billion.