A new research report "High Food Prices: Implications and Solutions", funded by the Rural Industries Research and Development Corporation, provides an analysis of food price rises.

It says government intervention could only make the problem worse, with the exception only being where immediate humanitarian concerns outweigh fears about market distoritions.

While higher prices have been welcomed by Australian farmers, they have led to food riots in at least 23 countries.

In the past 18 months, the world price of rice has trebled, maize has increased by two-thirds and wheat has doubled.

Grain is a major input into meat and dairy production and these prices have also risen significantly.

The report finds that supply-side factors causing the food price increases are:

*weak production growth relative to demand

*rapid growth of real agricultural input prices, particularly oil and fertiliser

*below average harvests in major exporting nations in recent years

*government restrictions on production and trade in food

The report also highlights demand factors such as rising global population, increased wealth boosting demand for meat and dairy products and government policies to encourage biofuels.

RIRDC managing director, Dr Peter O'Brien, said the report suggests that governments trying to find short term solutions to the problem of rising food prices could cause more damage in the long term.

"The report argues protectionist policies in the developed world that drove down prices in the 1980s and 1990s led to a reduction in research and development that is now resulting in slower productivity growth," Dr O'Brien said.

"Similarly taxes and other restrictions on exports also reduce domestic prices which may produce short-term benefits for consumers, but will act as disincentive for farmers leading to less production in the longer term."