Ghana is in talks with Qatar to set up a joint venture company by early next year to produce food for both countries, Ghana's vice president said on Saturday.

Gulf states suffered when international food prices spiked to record levels in 2008, forcing up their import bills. They have since sought to lease and buy farmland in developing nations to improve security of food supplies.

'It's state to state. They're interested to set up a joint venture to produce food for both countries for all kinds of fruits and vegetables, cereal, rice,' John Darmani Mahama told reporters on the sidelines of an industry event in Riyadh.

Initially a pilot project would be set up on 50,000 hectares, said Mahama declining to give details on the value of the deal.

'Depending how successful it is, there could be an expansion,' he added.

No further details were given on the terms of the contact.

Foreign land acquisitions has provoked opposition from some farmers in developing nations. – Reuters