RPT-Water trade part of answer to feeding world-Nestle

[CHIMO]

GENEVA, May 10 (Reuters) - Selling water on exchanges in the same way other commodities are traded could help solve a shortage of the world's most precious raw material likely to hit long before oil runs dry, the chairman of Nestle (NESN.VX) said on Tuesday.

"I am not against the idea," Peter Brabeck, chairman of the world's largest food group, told Reuters when asked about the idea of exchange-based water trade.

The first place to consider it should be Alberta province , he said, where competition could be particularly fierce between farmers needing water for crops, and oil companies needing water to exploit oil sands, which require far more water than other kinds of oil deposit.

"We are actively dealing with the government of Alberta to think about a water exchange," Brabeck said.

http://www.reuters.com/article/2011/05/11/nestle-idUSLDE74917X20110511

http://www.winnipegfreepress.com/business/breakingnews/121657749.html