Thai farmers "can win with global firms"

       Investment in agriculture by transnational corporations could help farmers in developing nations such as Thailand,the United Nations says.
       Large-scale investment by agri-giants would help modernise and commercialise the sector, the United Nations Conference on Trade and Development (Unctad) said in a report.
       The body says in its "World Investment Report 2009", released yesterday, the involvement of agri-giants could provide much-needed funding and expertise.
       "Investment and contract farming could be a win-win strategy [for governments]," said Nagesh Kumar, director of macroeconomic policy and development at the UN Economic and Social Commission for Asia and the Pacific (Escap).
       Contract farming is when foreign supermarkets or food processors agree to buy crops from local farmers.
       The report said that under such arrangements, the companies transfer skills to the farmers and link them to global markets. The transnational giants also provide seeds and technologies.
       Foreign direct investment in which transnational firms own assets and land could also boost productivity, the report said, adding that many developing governments have been slow to realise the benefits.
       On the downside, job losses and excessive dependence of farmers on the companies to supply input or buy produce could result.
       In promoting contract farming, host countries should try to safeguard the interests of farmers, the report said.Model contracts would protect farmers in their negotiations with the companies.
       Chanin Meepokee, director of Thammasat University's economic research and training centre, said the government would find it hard to take such advice.
       Farmers ended up losing in many contract farming deals because they lacked access to market information.