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Nestlé to expand in Chinese dairy market

By Dan Colombini , 13-Jan-2012

Nestlé is stepping up its efforts to expand in China’s fast-growing dairy market with the construction of a new dairy farming institute in the north eastern city of Shuangcheng.

Nestlé is stepping up its presence in the Chinese dairy market

Nestlé is stepping up its presence in the Chinese dairy market

The institute will include a series of training farms which, Nestlé hopes, will become the country’s leading dairy training centre within the next five years.

The firm has invested about £260M in the project which will be used to train more than 11,000 farmers for the management of dairy farms.

Rural milk farmers

Nestlé’s commitment to dairy production always starts at the source and in the Shuangcheng milk district, we build direct relationships with each of the rural milk farmers who supply us with farm-fresh products,” the firm revealed.

“Over the past 20 years, we have created a unique milk collection model called ‘factory and farmers’ that provides farmers with technical assistance whilst effectively eliminating the middleman to ensure traceability and accountability across our supply chain.”

Nestlé’s originally established a milk production facility in Shuangcheng in 1987. It is currently the largest of its kind in Asia and ranks fourth in the world in terms of annual dairy production in the Nestlé Group.

Local concern about domestic production means China has welcomed western investment.

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