SHUANGCHENG, China, June 6, 2012 /PRNewswire/ -- Nestlé (Euronext: NESTS) today held the groundbreaking ceremony for the Dairy Farming Institute, which will support the sustainable development and the accelerated modernization of the dairy industry in China. The groundbreaking follows an announcement Nestlé made in January, in which the company committed to transform Shuangcheng, one of its largest fresh milk supply bases in China, into the country's benchmark for dairy farming and management best practices.
The January 11th Memorandum of Understanding between Shuangcheng Municipal Government and Nestlé engages the parties to jointly develop modern dairy farming practices. Under the agreement, a total of RMB 2.5 billion will be invested between all parties in the milk district over the next five years through a partnership between Nestlé, the local government, investors and farmers.
Training open to the whole dairy farming industry
The Dairy Farming Institute occupies 600,000 square meters and is supported by three different types of training farms, including one cow base with 1,520 cows, which provides practical guidance for farmers working alone or on small farms to relocate to a professionally managed farm; one large farm with 1,200 cows and one mega farm with 8,000 cows to help those who own larger farms scale up their facilities and use more modern practices.
The professional training will benefit the whole industry and eventually be open to all dairy industry members.
Cooperate with first-rate partners
The Dairy Farming Institute is a platform for dairy business partners that will bring together experts in feed, genetics and other fields from around the world. It will offer dairy practitioners world-class training on dairy cow feeding and management.
Confirming long-term commitment to China
"In line with the government's 12th five-year plan for animal husbandry, the Dairy Farming Institute groundbreaking is a very important step for Nestlé to promote the modernization of the dairy industry in Shuangcheng and beyond. It also underscores Nestlé's commitment to growing our dairy business in China in a long-term and sustainable way," said Mr. Heiko Schipper, Managing Director of Nestlé Food & Beverage Division, GCR.
Nestlé has been investing in Shuangcheng to develop its milk district since 1987, three years before the Nestlé Shuangcheng dairy factory became operational. Since then, Nestlé has promoted scale and modern dairy farming through free training and technical assistance.