The company was chosen in recognition of its achievement in building the State’s most integrated and innovative dairy company.

The co-operative comprises about half of WA’s 170 dairy farmers, many of whom farm locally.

Witchcliffe dairy farmer and Co-operative chairman Larry Brennen accepted the award on the night, and paid tribute to those who drove the formation of the company in 1999.

He said it was still in an embryonic stage of development, so to be recognised by its peers in the food industry was a huge achievement.

Local farmers Ros and Tim Garstone, who have been with the Co-op since it began, were excited by the award.

“We’ve come a long way since deregulation (of the dairy industry) and we’re fully behind it,” Mrs Garstone said.

“The last eight to nine years have been amazing.”

Tim Garstone said the marketing and management team, as well as CEO Peter Giddy, deserved a big pat on the back for their hard work.

Their value-added approach, diversification into international markets and niche appeal had all helped local producers, he said.

Another local founding member, Paul Miller, said the award was “absolutely sensational”.

“I wouldn’t say it’s all been straightforward, but we’ve found our feet and it seems to be exactly what is required,” he said.

“It’s certainly returning a bit of confidence and stability to our farmgate price.”

Since its establishment Challenge Australia Dairy has doubled its intake of milk for processing, with the company reaching an annual turnover of $100 million.

“Life really began for our company in 2004/2005 when the joint venture began and a new CEO was employed to implement the farmers’ vision,” Mr Brennen said.

“As ever, our farmers have been resolute and concerted in their support for this business and this award is just recognition of their commitment to the future of the State’s dairy industry.”

Challenge also picked up the award for Excellence in the Supply Chain for its A2 Milk range, and has received a Federal Government’s Regional Food Producer Innovation Grant.

The Challenge company makes local products under the Capel Brand which are sold around the State and nationally, and exports fresh milk into Asia.