The Institute, situated at Massey Agricultural College, was established in 1927 as a unit of the Department of Scientific and Industrial Research. It was incorporated in 1947, with the members of the Board of Management being the members comprising the Institute, under the Religious, Educational, and Charitable Trusts Act of 1908. The Board comprises three members nominated by the New Zealand Dairy Board, two by the Minister in Charge of the Department of Scientific and Industrial Research, one by the Minister of Agriculture, one by the New Zealand Dairy Products Marketing Commission, one by the Council of Massey Agricultural College and one by the New Zealand Dairy Factory Managers' Association (Inc.). The Director-General, Department of Scientific and Industrial Research, the Director-General, Department of Agriculture, and the Director of the Institute, are ex officio members.