He was flown by rescue helicopter to Waikato Hospital.
The two truck drivers were uninjured, a Taupo police spokesman said.
Mr Morris said the ute driver was lucky.
"We had a fire truck from Tokoroa and called out a fire truck from Putaruru for extra manpower.
"I think he was very lucky. I think he is going to be alright."
A Rotorua Daily Post photographer at the scene said wreckage which was strewn for about 150m along the highway.
The milk tanker received minor damage, but the pallet truck had to be towed away, he said.
Traffic on State Highway 1 was reduced to one lane causing minor delays, but reopened later in the afternoon.
Last night the man was under observation in the emergency department, a Waikato Hospital spokeswoman said.