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.

INTERNATIONAL dairy product markets continue to improve, with a 12% increase in milk prices in New Zealand on the basis of improving prices for dairy commodities, and the President of the International Dairy Federation welcoming signs of prices stabilising, and initial signs that prices will start to rise.

A Chinese court declared bankrupt the company at the centre of a scandal over tainted milk that was blamed for killing six children and making nearly 300,000 more ill.