Fonterra: Global dairy prices are at high end of cycle and may fall

GLOBAL dairy prices are at the “high end of the cycle” and may decline as a record rally threatens to curb demand and farmers may boost supply, according to Fonterra Co-operative Group, the world’s largest exporter.

“Farmers should be prepared for a potential global price drop,” Auckland-based Fonterra said in its half-year financial statement.

“As prices continue to climb, the possibility of a downward correction increases.”