Australian dairy company National Foods has said that it has been awarded the contract for the supply of house brand milk to Woolworths supermarkets throughout Australia.

"It is very pleasing that the new contract is for a period of three years, from 2004 to 2007," said National Foods' managing director, Peter Margin. "This gives us the confidence and security to continue to invest in our business to further strengthen our current processing cost advantage."

National Foods, which has a 40% share the Australian milk market, is coming to the end of a similar two-year contract with Woolworths, but had to compete in a tender process to win the new contract.