Brazil exports many of its agricultural products to other developing countries. Says Rocha, “Russia is the main buyer of Brazilian pork meat, Egypt is the main importer of Brazilian fresh beef, the Middle East in general is the biggest market for Brazilian poultry and sugar, Algeria is the main buyer of Brazilian dairy products, China is the biggest importer of Brazilian soy beans, and Iran is the main market for the Brazilian corn.”

According to Rocha, expanded trade with the developed nations has not been an option. “Many developed countries, such as the US, Australia, and nations of the EU, are our competitors, and impose barriers to the imports of Brazilian products. This is one of the more difficult problems for the WTO Doha Round.”

Several years ago, a Hindu Business Line (India) editorial considered the role of regional trade blocs in the global economy. The editorial went on to recommend that developing countries preferentially export branded agricultural produce to regional trade partners, rather than focusing on major importers like the US and EU.

Brazil’s successes notwithstanding, this strategy may not be feasible for all developing countries. Although the greatest potential for growth in food and agricultural trade is among developing countries due to higher population and income growth rates, Professor David Blandford of Pennsylvania State University notes, “Barriers to South-South agricultural and food trade tend to be high, due to high transactions costs and tariff protection.”

Still it can be quite expensive to build a brand in the US and EU. “There may be some cost savings in staying regional. And building brands up slowly from the local to the global is an old strategy for many firms,” says Professor Keith Maskus of the University of Colorado.

Christa Lachenmayr, an agricultural economist with Nathan Associates in Arlington, Virginia, works with clients in developing countries, helping them acquire intellectual property rights for agricultural brands. She says, “One of the limiting factors in developing countries is whether or not they have the appropriate regulatory regime to recognize and for companies to register a national identity.”

Randall Frost is a freelance writer based in Pleasanton, California. He is the author of The Globalization of Trade. His work has appeared in Worth, The New England Financial Journal, CBSHealthWatch, and a variety of educational publications.