Nestlé has announced plans to invest CHF53 million (€49.2 million) on sustainable agriculture and production in China.
The company’s Grain Competence Centre will use a part of the investment to develop local grain cultivation in Heilongjiang Province, with a focus on organic grains.
The money will also be used to upgrade and complete the expansion of the Nestlé Dairy Farming Institute (DFI).
The institute will help train dairy farmers and establish the company as a sustainable source of high-quality local milk, especially for Nestlé's A2 milk products.
The DFI will also help Nestlé in reducing greenhouse gas emissions in its supply chain through a series of projects on its own farms.
These projects will showcase best practices and explore opportunities for 'carbon-neutral' fresh milk, the company added.
In addition, the investment will also be used to strengthen Nestlé's production capacity in Shuangcheng, Heilongjiang Province.
The project will be completed in two phases over the next five years, starting with the expansion of production capacity for Gerber infant cereals by more than 50%.
In the second phase, the food giant aims to launch two new product categories the infant cereal-based snacks and adult functional foods categories.
It will also continue to focus on making its facilities in Shuangcheng more sustainable and efficient by implementing new energy-saving programmes and replacing old equipment with state-of-the-art technologies.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.