A German agricultural market research group on Friday dismissed the often repeated claim that rising demand from China is the main reason for surging world food prices.

"Although China's role in world agricultural trade is increasingly significant, its effect on global agricultural trade is often exaggerated," said the Central Agricultural Market and Pricing Agency ZMP in a report posted on its website.

The group, established by German farm producers, said that in many agricultural segments, China is not, or is only to a limited extent, an importer.

For example, China has so far managed to meet its own demand in wheat, corn and rice, and sometimes even export to other countries, it said.

Although China's grain stock has shrunk by nearly two thirds due to rising domestic demand since the turn of the century and China's pork supply has also declined, the country could still be self-sufficient in medium and long term, and might even become an exporter, the report added.

It also noted that China's domestic consumption of milk and diary products has increased by more than five times in the past decade, but the bulk of this increased demand was covered by a simultaneous expansion in domestic production.

According to the ZMP report, with about 40 percent of global soybean exports going to the Chinese market, China does have a strong influence on world soybean prices.

"Overall, although China is a net importer in the agricultural sector due to very extensive import of oil-bearing seeds, the country still can cover its own rising demand in most of major farm products," the ZMP report said.

(Xinhua News Agency April 26, 2008)