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Nestlé shuts Zim factory

Zurich - The food giant Nestlé said on Wednesday that it had shut down its milk processing plant in Zimbabwe temporarily after staff were forced by authorities to take milk from "non-contracted suppliers".

Nestlé in October stopped buying milk from a farm owned by Zimbabwe President Robert Mugabe's family, who seized it from white farmers under his controversial land reforms.

"On October 1, 2009, Nestlé issued a public statement saying that Nestlé Zimbabwe would no longer be sourcing milk from non-contracted suppliers," the company said in a statement on Wednesday.

"Since then, Nestlé Zimbabwe has faced pressure to purchase and process fresh milk from certain non-contracted suppliers, a request which the company has consistently refused."

"Since under such circumstances normal operations and the safety of employees are no longer guaranteed, Nestlé decided to temporarily shut down the factory," the group added.

The Swiss-based food giant, the world's largest, said Zimbabwean government officials and police made an "unannounced visit" to the plant on Saturday, forcing staff to take delivery of a milk tanker from non contracted suppliers.

Two Nestlé Zimbabwe managers were also questioned by the police and released without charges the same day, it added.

-Sapa

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