Freedom Foods signs dairy deal with Chinas New Hope Group

Australian food manufacturer Freedom Foods and its major shareholder the Perich Group have announced the signing of a Memorandum of Understanding with Chinas agricultural industry giant the New Hope Group.

The Memorandum was signed during the official ceremonies in Canberra while Chinas President Xi Jinping and Australias Prime Minister Tony Abbott signed the China-Australia Free Trade Agreement. This visit also coincided with a meeting of the Australia Sino Agriculture 100 meeting, which was attended by New Hope Chairman, Mr Liu.

We are pleased to announce the formal signing of a Memorandum of Understanding between New Hope Group, Perich Group and Freedom Foods Group, said Rory Macleod, Managing Director of Freedom Foods Group.

Under the Memorandum of Understanding, the parties will co-operate to develop and implement growth in long-term dairy milk supply through establishment of new large scale intensive dairy farms in South East Australia for supply to Freedom Foods Groups UHT operations and other potential processing operations in Australia including fresh milk.

Australia has a unique advantage in the supply and manufacture of high quality premium agriculture based foods, Mr Macleod said. With increasing demand from markets in China and South East Asia for high quality value added product, Australia through companies such as Freedom Foods Group and Perich Group are well placed to play an important role in the development of this supply chain, he said.

Mr Macleod said these supply arrangements would compliment sourcing from existing dairy farm supply to ensure the ability to meet long term supply requirements.

He said the arrangements envisaged will provide a unique collaborative business model to develop large scale dairy farms under Australian management and ownership. New Hope Group will be a core investor and partner in the operations, while continuing to market and distribute value added dairy products into China through New Hope Dairy.

New Hope Group investment fund to develop Australian activities

New Hope Group has established an investment fund of up to $500 million to be utilised in the development of agricultural and food processing activities in Australia, with a substantial proportion to be invested in dairy farm and processing activities in the longer term.

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Freedom Foods signs dairy deal with Chinas New Hope Group