Kiwi plans Marlborough merger

King-sized New Zealand co-op Kiwi Dairies is gearing up to take over Marlborough Cheese as it continues its self-appointed mission to consolidate the nation's dairy industry.

Marlborough manufactures 7,000 metric tons of cheese from its Tua Marina-based plant employing 50 individuals, and makes and markets Koromiko Cheese. Provided the proposed deal comes to fruition, the cheesemaker will be combined with Kiwi's Mainland domestic marketing subsidiary.

"We are heartened by Kiwi's commitment to the co-operative principles upon which the New Zealand dairy industry was founded, and their absolute desire for farmers to retain control of the business," said Marlborough Cheese Chairman Paul Todd.

Kiwi plans to combine Marlborough's cheesemaking know-how with its own product mix flexibility and Mainland's strong market position.

The intended merger follows several other Kiwi acquisitions, including takeovers of Tasman Milk Products and Nelson Milk as well as an in-progress merger with Kaikoura Co-operative Dairy Co.

Just last week, Kiwi proposed a share restructuring designed to counteract the diluting of shareholder finances that's occurring due to milk-production increases and new producers entering the company's ranks. (See related article).

Edited by Gerry Clark,
Managing Editor, Dairy Network.com