Dairies have been named as the primary outlet for an illegal tobacco ring, now busted.

The Illicit Tobacco Action Group has run a six-month op - seizing more than 1.3 million cigarettes, $170,000 in cash, and arresting five across Rotorua, Waikato and Auckland.

Officers conducted 21 searches at eight outlets and six homes across Rotorua, Waikato and Auckland.

Customs' Terry Brown says they caught a mix of retail outlets, distributors and storage areas.

"We remain very hopeful that evidence, particularly forensic evidence, will give us a steer towards the import supply chain." 

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