This comes hard on the heels of the announcement of the National Foods proposal to acquire Dairy Farmers. Dairy Farmers chief executive Rob Gordon said a 25pc surge in earnings before interest, tax, depreciation and amortisation (EBITDA) during fiscal 2008 to $71 million – which was at the top end of previously issued earnings guidance – was achieved in a particularly hostile operating environment.

“During fiscal 2008, Dairy Farmers needed to absorb an additional $170m in costs – primarily as a result of record farm-gate milk prices,” Mr Gordon said.

“Despite this prohibitive cost environment, the cooperative achieved a 25pc increase in full year EBITDA to $71m, before costs related to the shareholder liquidity event, when compared with the prior comparable period to June 30, 2007 of $57m.

“The lift in earnings can be primarily attributed to Dairy Farmers’ turnaround strategy of investing behind high-margin branded products across key channels - which has been underpinned by a strong innovation pipeline, sustained cost-out initiatives and continued price recovery from the marketplace.

“During the period, Dairy Farmers posted an 11pc

increase in sales revenue from $1.18 billion in fiscal 2007 to $1.31 billion in fiscal 2008.

This trend was particularly evident in the retail channel, where sales increased by 17pc and in the route channel where an 11pc uplift was achieved.

“Dairy Farmers’ net profit after tax increased to $13.7 million in fiscal 2008 from $10.6 million in fiscal 2007.

“In fiscal 2008, Dairy Farmers achieved double digit value growth in each of the four retail categories in which it participates – cheese by 15.5pc, flavoured milk by 15.3pc , everyday yogurt by 14.6pc and white milk by 10pc.

“During fiscal 2008, Dairy Farmers effectively doubled the market share of its recently launched Thick & Creamy yogurt – taking it from 5.2pc share of the market to 10.1pc category share.

“The acquisition of Perfection Dairies, and its successful integration into the Dairy Farmers business, to June 30 2008 also had a positive impact on full year earnings.

“In fiscal 2009, Dairy Farmers will launch a number of exciting new products and innovations including a new dairy drink, Rise, as well as a significant packaging advance in the cheese category.”