The New Zealand Dairy Board is a quasi- government corporation that was explicitly created by New Zealand statute to purchase all New Zealand dairy products that are manufactured for export. (New Zealand accounts for about 1 to 2% of world milk production, but has an export share of about 25% of the market.) The Board is governed by 13 Board members, 11 of whom are directors of New Zealand’s dairy cooperatives, and 2 are appointed by the government. It operates through a global network of marketing subsidiaries, based in the countries where New Zealand dairy products are sold. Through its purchasing activities and its system of premiums and penalties, it can encourage the production of dairy products that are in high demand and discourage those that are in surplus.