Australia’s largest listed dairy company National Foods has said that it is on target to increase full-year earnings by more than 15%.

National Foods managing director Max Ould said that the earnings growth would be helped by recent price increases as well as stronger sales volumes as a result of the company’s contract to supply milk to the country’s largest grocer Woolworths.

However, Ould said he remained frustrated at failed attempts to merge with rival co-op Dairy Farmers and warned that he may reassess his position next year if industry consolidation does not progress, reported Reuters.