Nestlé China to invest in sustainable agriculture and production capacity

Nestlé China has announced plans to invest CNY400m ($58m) to boost sustainable agriculture and production in the country.

A portion of the investment will be used by the company for promoting and developing local grain cultivation in Heilongjiang province, with an initial focus on organic grains.

With support from the new Nestlé Grain Competence Center (GCC), the company aims to achieve this objective. Nestlé’s GCC is claimed to be the first such facility in the world.

The investment will also be used to upgrade and expand the Nestlé Dairy Farming Institute (DFI).

Through this initiative, the company aims to bolster its role in dairy farming training and establish a sustainable source of high-quality local milk for Nestlé’s A2 milk products.

The DFI is also expected to help the company in minimising its greenhouse gas (GHG) emission levels in its supply chain.

The investment will allow the company to increase Gerber infant cereals production capacity by more than 50%, as well as execute a series of emission reduction projects at the DFI’s own dairy farm and demonstrate best practices to explore opportunities for ‘carbon-neutral’ fresh milk.

Nestlé plans to use another portion of the investment for strengthening its production capacity in Shuangcheng, Heilongjiang. The expansion is expected to be completed in two phases over the next five years.

Nestlé will also launch two new product categories namely infant cereal-based snacks and adult functional foods.

It also intends to replace some of the equipment at its Shuangcheng facilities introduce new energy-saving programmes.

In May, Nestlé announced an investment of Sfr100m ($103m) to enhance its manufacturing capacity in China.