Ban Ki-moon. Photo / Reuters

Ban Ki-moon. Photo / Reuters

UN Secretary-General Ban Ki-moon is urging world leaders to immediately suspend or eliminate many price controls and other agricultural trade restrictions to bring down soaring food prices.

Mr Ban pressed nations at a summit of the UN's Food and Agriculture Organisation in Rome overnight to ease a wide range of farming taxes, export bans and import tariffs to help millions of the world's poor cope with the highest food prices in 30 years.

He wants the United States and other nations to phase out subsidies for food-based biofuels, including ethanol, that have encouraged farmers to grow crops for energy use rather than eating.

If his plan is accepted, it would be good news for New Zealand, as the food export industry is likely to be tens of millions of dollars better off.

New Zealand farmers receive no subsidies, but the average dairy farmer pays nearly $40,000 a year in tariffs to other countries.

Sheep farmers pay up to $20,000 a year.

Federated Farmers national president Charlie Pedersen told the Herald last night New Zealand had been urging such a move for many years.

Any reduction of tariffs would be "very significant" to New Zealand exporters.

It would bring down the cost of food and would hugely benefit the world's poorest people.

"Such a move will cause farmers from the third world to be inspired to produce. They will be able to do it at a price they can afford."

Meat and Wool New Zealand technical policy manager Ben O'Brien said beef exports to the United States and lamb exports to Europe were worth $1 billion each to New Zealand farmers.

"Anything that is going to level the playing field for New Zealand producers is a good thing."

He said the United Nations could only suggest such moves, and New Zealand producers would have to wait and see which countries took up the proposals.

The World Bank and humanitarian agencies have been demanding action to curb soaring prices that could push up to 100 million people into hunger.

"World public opinion has been taken by surprise by the explosion of a rapid chain of events affecting food followed by the rapid, dramatic rise in the price of foodstuffs," Italian President Giorgio Napolitano said in a speech opening the summit.