The ground-breaking deal will mean that 12,000 dairy farmers and former dairy farmers in England and Wales will become shareholders of one of the most exciting growth companies in the UK health food sector.

It was made possible by the conversion of Milk Marque, the successor company to the Milk Marketing Board of England and Wales, from a co-operative to a conventional company - a move approved by Milk Marque's farmer members last year.

Milk Marque chairman Roger Evans said: "Community Foods represents an excellent investment for Milk Marque shareholders. It is growing rapidly, operating very profitably in an attractive sector, has the scale Milk Marque is seeking, and a unique background and ethos that fits well with our own co-operative origins.

"Its growth and profitability are truly impressive. For the year ended 31 March 2006 the company generated a pre-tax profit of £3.4m on turnover of £54.4m, continuing a trend of increasing turnover and profitability, stretching back over a number of years."

Source: icnewcastle.icnetwork.co.uk