The fall in global food prices as a result of the economic downturn may have reached the bottom according to international agency GlobalDairyTrade. The agency reported that an increase in spot prices for whole milk powder in late December is a sign that buyers are re-entering the market. As a result of the global economic downturn companies and governments stopped buying and began eating into stockpiles built up during 2008 and the global scare over food shortages. Prices for dairy products have halved in the last six months, wheat and other grains have fallen by more than one third. They are still higher than at anytime before 2006.
Global Dairy Trade announcement