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Global food prices fall at fastest rate in 7 years; Dairy plunges 9.1%

Global food commodity prices continued to decline in August as ample supplies, a slump in energy prices and concerns over China’s economic slowdown all contributed to the sharpest fall of the FAO Food Price Index in almost 7 years. A substantial drop in prices for milk powders, cheese and butter pushed the August dairy price index down by 9.1% to 135.5 points, with much of the weakness attributed to softening import demand from China, the Near East and North Africa.