The National Foods proposal received the support of 96.3pc of ACF active members.

ACF chairman, Ian Langdon, said that it had needed the support of 75pc or more of active members, who voted in a special postal ballot, which closed yesterday.

“More than 88pc of ACF’s total number of active members chose to exercise their right to vote in the special postal ballot – indicating a high level of interest in the proposal.

“A court hearing will take place on November 18 to seek approval of the scheme.

"If court approval is granted at this time, it is proposed that the scheme will be implemented on November 26 – at which time ACF members and qualifying former members will be paid their entitlements."

In addition to achieving at least 75pc support, the National Foods proposal also requires Dairy Farmers Milk Co-operative (DFMC) to enter into revised supply contracts with new or existing suppliers until at least 30 June 2010 for minimum specified milk volumes by region.

“I’m confident that DFMC will successfully secure the prescribed minimum milk volumes required by the National Foods proposal," Langdon.

The National Foods proposal had been unanimously recommended by the boards of both ACF and DFMC in the absence of a superior proposal.

The National Foods proposal puts a value of $910 million on ACF - a multiple of 12.8 times 2007-08 earnings.

DFMC Chairman Ian Zandstra said the successful National Foods proposal would give rise to a new era in Australian dairying that would ultimately benefit DFMC suppliers.

“The new milk supply arrangements, available as part of the successful National Foods proposal, will provide the opportunity for DFMC suppliers to have a secure outlet for the raw milk they produce," he said.

“Attractive milk prices have been agreed on until June 30, 2010, and after that date DFMC will negotiate ongoing milk prices with ACF (when owned by National Foods), who have indicated an intention to pay DFMC suppliers regionally competitive farm-gate milk prices."