Swiss food giant Nestlé says it has launched an enquiry into practices at a subsidiary in China accused of underpaying its suppliers for at least ten years.
This content was published on
1 minute
swissinfo.ch
The accusations against the Nestlé Shuangcheng factory in the northern cattle breeding province of Heilongjiang surfaced in the Chinese press.
The English language version of the People’s Daily Online carried an article on Tuesday quoting local dairy farmers as saying it was “an open secret” that Nestlé had been squeezing their profits.
Farmers claim officials at the plant cheat them over the weight of their milk, and deem the milk to be of lower quality than it really is, in order to pay less for it.
The website says the Shuangcheng city government helped Nestlé achieve a monopoly position in the local milk market because it is the town’s top taxpayer. The city government also has a nearly three per cent stake in the factory.
A spokeswoman for Nestlé China told the AFP news agency on Wednesday that the company did not cheat the farmers.
“We are taking these reports very seriously, and have already opened an enquiry, jointly with the local authorities,” she said.
“Nestlé does not tolerate such practices, and will take immediate steps once we have clarified the problem,” she added.
You can find an overview of ongoing debates with our journalists here. Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Zimbabwe puts food giant Nestlé on the ropes
This content was published on
The Zimbabwean authorities say 700 foreign firms have not met the legal deadline to sell majority shareholdings to locals, and face serious consequences. Nestlé, which has Swiss support, says it is still in talks with the authorities. Under the indigenisation law, which was enacted in March 2010, any foreign company with assets valued at over…
This content was published on
The Swiss-based food giant announced two months ago that it would spend $40 million (SFr41.9 million) over the next three years on a factory in the capital Kinshasa. It will produce culinary and coffee brands including Nescafé 3-in-1 and Maggi stock cubes. But the granting of generous tax benefits to the group’s Congo subsidiary has…
This content was published on
Swiss Economics Minister Johann Schneider-Ammann said he will meet China’s trade minister, Chen Deming, on Friday as Switzerland seeks to beat the European Union to a lucrative deal with the fastest growing world economy. “The chances are good that we can conclude a free trade agreement with China before the EU,” Schneider-Ammann said. “This would…
This content was published on
The World Expo in Shanghai is officially underway, with the Swiss exhibition attracting large crowds wanting to ride a ski lift to “mountains” and “meadows” installed on the roof. Blaise Godet, Switzerland’s ambassador to China, says the Swiss have a real advantage in that Switzerland is beautiful. But the pavilion hopes to go beyond the…
You can find an overview of ongoing debates with our journalists here. Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.