Australia’s Moxey Farms and the Perich Family’s Leppington Pastoral Co. have formed an agreement that will create a four-way dairy consortium including China’s New Hope Dairy Holdings and listed food processing company, Freedom Foods.
The Perich Group’s Leppington Pastoral Co. and its subsidiary, Freedom Foods will be leading the deal that will facilitate investments targeted at increasing Australian milk supply for the production of value added dairy products for eventual export to China. Each of the four partners will gain access to assets and operations along Australia’s supply chain, with New Hope Dairy providing distribution links through China and funds for investments in the industry in New South Wales and Victoria.
The acquisition of Moxey Farms will give Freedom Foods a stable long term supply of fresh milk – Moxey produces 50 million liters of milk per year from 3,700 head of cattle on 2,700 hectares, and the new combined output of Moxey Farms and the Perich Group will be 75 million liters annually.
Last year, New Hope Dairy formed a $500 million investment fund for the acquisition of global dairy farms and processing facilities, while at the same time, Moxey Farms began a review of its operations in preparation for finding a strategic partner to bring the company to its next level of growth. The consortium plans to scale up operations to possibly equal those of Gooloogong, at between 3,500 and 5,000 head, gain exposure along the entire supply chain, and develop value added markets in China.
To receive relevant news stories with summaries provided by GAI News, subscribe to daily or weekly service.