Dairy giant Bonlac’s 50% stake in Classic Foods has been bought back by the Tasmanian dairy company.

"The buyback deal with Bonlac is an amicable one that includes a long-term milk supply agreement and ensures continued growth in the company," managing director of Classic Foods, Bob Wilson, was quoted as saying by the Hobart Mercury.

Wilson also said that Classic Foods would continue to invest in plant and equipment during 2003, and would continue to source its milk from Tasmanian Bonlac suppliers, reported the Hobart Mercury.