Nestlé improves conditions for local farmers in N.E. China
Shuangcheng, North-Eastern China, 22 January 2001 - One reason why developing countries vie with each other to attract foreign direct investment is the wealth and technology that modern production facilities can bring to surrounding communities. Resulting improvements in infrastructure and living conditions for the local population meet one of the basic aims of the global compact - to roll back poverty.
In a harsh climate of North-Eastern China, Nestlé has for more than 10 years successfully operated a factory for the production of milk products, mainly powdered milk, infant formula and weaning foods.
Temperature extremes were the biggest of many challenges in establishing the factory in Shuangcheng, the first of a dozen Nestlé factories now in production throughout China. During the deep winter, lasting from the end of November to early March, temperatures level off at around -25ºC and can plummet to -40ºC. Summer brings extreme heat, with temperatures consistently above 30º.
The extreme climate therefore has been a key challenge in ensuring the factory's fresh milk supply and in treating waste water. Although milk was intended to be the factory's main raw material, the allocated milk district was declining in production and was not well organized.
To ensure sufficient and steady milk supplies, Nestlé worked in cooperation with the provincial and local governments to stimulate efficient and economically viable milk production in the area.
Initiatives included programmes for improved breeding, better milk prices for farmers, better road systems between the farms and the milk factory and improvements in livestock feed to increase milk production.
Says Joe M¼ller, Managing Director of Nestlé China: "These continuous improvements not only benefit Nestlé, but also continue to create wealth for the surrounding communities and the country at large."
All Nestlé's factories in China have state-of-the-art waste water treatment facilities. The Chinese authorities have recognized them as "Advanced Enterprises in Environmental Protection."
Nestl's progress in key environment areas - water, air and climate
Nestlé
The Global Compact