Global food prices fall at fastest rate in seven years

Last month saw a 5.2% fall in global food prices, the biggest drop in seven years, according to the UN.

Its Food and Agriculture Organization (FAO) saw monthly falls in all major commodities, from milk and vegetables to oils, sugar and cereals.

Food producers are being hit by slowing demand in China and a Russian embargo on Western products.

Now the European Commission is to release €500m ($557m) to help Europe’s farmers.

The commission said the most significant part of the package would support the dairy sector in all EU member states.

Dairy farmers have suffered a 20% fall in European wholesale milk prices in the past year.

The European Commission aid comes on top of extra help for European fruit and vegetable farmers, who have been hit by the Russian embargo on Western food imports in retaliation for EU and US sanctions over the crisis in Ukraine.