Farmers feel the pain as food prices are hit by sharpest drop for 7 years

Food prices have been hit by their sharpest fall for seven years, bringing fresh woes for struggling farmers across the globe. The falls affected almost all commodities, including milk, vegetable oils, sugar and cereals, measured in the UN’s food price index. The 5.2 per cent drop was blamed on too much supply, a slump in energy prices and concerns over China’s economic slowdown. The index is now at its lowest since June 2010, the UN’s Food and Agriculture Organization said.

A country of that population and size slowing down affects all sectors, agriculture included.

FAO economist Abdolreza Abbassian on China’s woes

Tumbling prices have seen thousands of farmers atop hundreds of tractors take to the streets in protest outside the European Union headquarters in Brussels and in Paris. But the UN agency figures contained little hope of an upturn as it forecast increased production of cereal, coarse grains, wheat and rice for 2015, which is likely to further push down prices. A Russian embargo on Western products in response to sanctions over the Ukraine conflict, will also continue to push down prices for beef, pork and milk, it said.

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