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Freedom Foods Group Limited (ASX:FNP) and Perich Group have struck a $500 million deal with Chinese private agricultural company, New Hope Group.The health foods company and Perich have inked a memorandum of understanding with New Hope under which New Hope will set up an investment fund.Under the MOU the group’s will cooperate to develop and implement growth in long term dairy milk supply, including developing large scale dairy farms.New Hope will be a core investor and partner while continuing to market and distribute products into China through New Hope Dairy.The $500 million fund will be put to the development of agricultural and food processing activities in Australia.Freedom Foods Group says these initiatives are expected to lead to increased sales and return on funds employed in the longer term.Freedom Foods Group reported a net profit of $12.1 million in the full 2014 financial year.
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