The days of small dairy and meat companies may be coming to an end

The country's second largest dairy processor -- Talley's subsidiary Open Country Dairy -- has confirmed it's buying the fifth largest, Miraka.

It's also buying infant formula producer Mataura Valley Milk.

Open Country Chief Executive Mark de Lautour says the Miraka purchase will allow them to remain efficient during the lower end of the season.

He says dairy is one of those industries where the margins are slim, and it's hard if you don't have sufficient scale.