November 24, 2014
New Hope Group to build million heads dairy farm in Australia
Fuelled by the historic China-Australia free trade agreement, New Hope Group has announced last week that the company will be investing AUD$500 million (US$432.4 million) in Australian agriculture and food products industry, including the construction of a million heads dairy farm in Australia.
Furthermore, New Hope Group has signed a memorandum of understanding with ASX-listed Freedom Foods Group and its controlling shareholder, the Perich Group. The Perich family owned a 60% stake in Freedom Foods. Under the signed memorandum of understanding, all parties will cooperate exclusively to develop and implement growth in long-term dairy milk supply through the establishment of new large-scale intensive dairy farms in Victoria.
Freedom Foods and New Hope will also be working together on a business plan to take existing and or new products from the Freedom Foods portfolio for sale in China.
Liu Yonghao, chairman of New Hope Group, cited that some of the reasons for the company to invest in Australia are its resource-rich lands, excellent dairy breeds and relatively lower forage costs compared to China.