Nestle Bows to Western Pressure

Nestle bows to Western pressure

HR-Reuters

Global food leader Nestle’s Zimbabwe unit has stopped buying milk from Gushungo Farm, owned by the First Family, following pressure from Western nations that wanted the firm to adhere to the illegal economic sanctions regime that bids multinational corporations to stop doing business with Zimbabwean entities.

Nestle had been under intense pressure over the past few weeks and despite initial resistance that it would never stop its Zimbabwe operations, the company finally caved in to Western demands that it stops buying milk from Gushungo farm as part of Western protest over the land reform programme.

Nestle’s argument was that it has been operating in Zimbabwe for over 50 years and did not see reason in pulling out.

However, in a statement on its website on Friday, Nestle said: “In light of the recent controversy surrounding our relationship with the Gushungo Dairy Estate, we believe that this announcement reflects our long-term commitment to Zimbabwe while acknowledging the specific circumstances around these events.”

Nestle’s decision to pull out of the deal came after international media coverage of the milk purchases put the company under the spotlight.

Nestle said its Zimbabwe unit had started buying the milk on a temporary basis in February this year because a local marketing firm which dominates the milk industry was unable to make purchases during an economic crisis.

“This helped prevent a further deterioration in food supplies in Zimbabwe at that time,” said the company of its decision to purchase milk from eight farms, including Gushungo Farm.

The Government’s decision to implement the land reform programme, drew heavy criticism from Western countries whose kith and kin were dispossessed of land. The land reform policy was meant to address historical land ownership imbalances.

In a September 28 statement, Nestle said its business with Gushungo Investment accounted for between 10 and 15 percent of the company’s local milk supply.

“Nestle has been in Zimbabwe for 50 years, working with the population of Zimbabwe and striving to maintain a long-term viable operation in often challenging conditions,” the company said.

“We operate in Zimbabwe, as we do in every country, through good times and bad.

“We work for the long-term, in a way which has positive impact on our consumers, employees and suppliers.” — HR-Reuters.

Source:
http://panafricannews.blogspot.com/2009/10/nestle-bows-to-western-pressure.html