Bay Milk Products 'tackles' the industry 'giant': the Bay Milk Products and New Zealand Dairy Group merger story

Abstract

In the 1990's the Diary Industry entered into an area of rapid change, and legislative reviews that altered the relationship between the NZ Dairy Board and the Dairy Companies. Bay Milk Products (BMP) endeavoured to manage Industry change in a positive and constructive manner, but soon realised that with only minority industry support it had little chance of achieving the required objectives. This prompted BMP to look at available options and plan for what might be a very different future. Following extensive studies, consultations and debates a merger of operations behveen NZ Dairy Group and BMP was widely accepted as the best and most practical option to secure the best shareholder long term interests.