Update 6 January 09:40  Vevey, Switzerland (GenevaLunch) - Swiss food multinational Nestlé’s Zimbabwe operations have begun to process milk again, two weeks after suspending production because of government pressure. Government-run newspaper The Herald says workers were back in place and milk was being processed normally after a “misunderstanding” that closed the plant 23 December. The Nestlé operation is one of Zimbabwe’s largest suppliers of milk and has been running for more than 50 years.

Nestlé’s Swiss head office provided GenevaLunch with the following statement Tuesday 6 January, confirming that processing has begun again: “On 19 December 2009, Nestlé suspended the activities at its Harare factory (Zimbabwe) as normal business was no longer possible and the safety of its employees could not be guaranteed. Since then, the local Nestlé management has been in regular contact with the Zimbabwean authorities to find a solution.

“On the basis of the written assurances given by the Minister of Industry and Commerce of Zimbabwe to guarantee the security of Nestlé management and staff and not to interfere in the company’s operating processes, Nestlé decided to restart the activities at its Harare factory on 31 December 2009. The company reiterates its commitment to source milk exclusively from its contracted farmers.”

At issue: whether or not Nestlé Zimbabwe would be obliged to take milk from Gushungo Dairies, formerly called Foyle’s and one of the country’s largest. It belongs to Grace Mugabe, the wife of President Robert Mugabe. The Herald reported 4 January that “while details of the agreement were not divulged, Minister [Welshman] Ncube indicated that the parties had ‘collectively reached an understanding to work together in ensuring that milk produced at Gushungo Dairies is absorbed by the local dairy processors.’”

The Herald added in its article that “Nestlé Zimbabwe’s decision to temporarily shut down operations was sparked by hysterical international media”, mainly in Anglophone countries where there were calls to boycott the company.

Background, GenevaLunch

Links to other sites: AllAfrica, BBC, Zimbabwe Times 24 December 2009

You can leave a response, or trackback from your own site.