This paper provides an overview of the dairy sector in New Zealand (NZ) and discusses the NZ dairy value chain: farming, manufacturing and exporting. Reviews of existing literature and data are used for discussions of NZ dairy industry and the value chain. Rationalization and consolidation through mergers, acquisitions and strategic alliances ware a common feature of the NZ dairy industry over the last century. The prognosis for NZ dairy industry is very optimistic. Increased efficiency is expected to lead to increased production. Exports are expected to increase in response to the increasing demand worldwide, expanding market access and reduction of export subsidies.