By PHILIPPA STEVENSON
The small Marlborough Cheese dairy company and Kiwi Dairies intend merging as the giant company continues its mop-up of industry minnows.
Where manufacturing companies were once numbered in their hundreds, just Tatua, in the Waikato, and a Westland company, will be independent of the mega twins, Kiwi and Dairy
Group, after the latest merger.
In September, Kiwi announced take-overs of two other small South Island companies, Tasman and Kaikoura.
In June, it took over the milk market company Nelson Milk, and last year merged with the big Northland co-op.
Marlborough had maintained that it was likely to remain outside the two dairy giants, but there was some scepticism that the stance was more of a bargaining ploy than a real intention.
Industry top performer Tatua, on the other hand, is not expected to change its position of fierce independence.
Like the other recent deals, Marlborough's merger will be backdated to June 1 this year. Its 81 suppliers will get the year's full payout going to Kiwi's other 5700 suppliers.
Kiwi chief executive Craig Norgate said Marlborough had a sound manufacturing operation, its cheese was well respected and the company had done well on the domestic market. It makes and markets the award-winning Koromiko cheese, which will be integrated into Kiwi's Mainland business.
"It's a credit to their leadership team that we are in a position to offer them an even deal," said Mr Norgate.
Marlborough chairman Paul Todd said the merger gave his shareholders increased security.
