The pitch, which was handled by Agency Insight, ended in a final two-way shoot-out against Karmarama.
The review, overseen by Dairy Farmers of Britain's marketing director, Michael Cohen, marks the first time the organisation has worked with an above-the-line agency.
Dairy Farmers of Britain is a co-operative of businesses with an annual turnover of £500 million. Chick Smith Trott has been briefed to develop a campaign to increase awareness of the Dairy Farmers of Britain brand and promote a number of product launches.
In November 2005, the collective announced it was launching a range of dairy products to steal market share from supermarket own-label and mass-market brands.
The collective plans to introduce further lines, including milk and cream, which will take on brands such as Arla's Cravendale.
Dairy Farmers of Britain is the UK's biggest milk and cream processor, producing more than 1.2 billion litres a year. The decision to launch a range marks a strategy change for the group, which previously housed a range of disparate brands. It is hoped the streamlined brand will boost its distribution muscle to compete with mass-market rivals.
The products aim to capitalise on consumer interest in food quality, nostalgia for regional products and affection for British farming.
Cohen said: "Chick Smith Trott impressed us with its passion for our business and insightful understanding of the challenges we face."