Nestlé suspends production at Argentina dairy site

Nestlé is to suspend production at a powdered milk and dairy product facility in Argentina in March – Just Drinks reported.

The Swiss giant is to halt output for a month at its factory in the Córdoba region of the country to manage excess stock.

Nestlé said it needs to reduce production volumes due to a decrease in exports and an “adjustment” in local demand.

The factory mainly produces whole powder milk, instant powder milk, skimmed powder milk and UHT milk. It also makes ready-to-drink products for the Nesquik and Nido brands.

“It is important to clarify that this measure is temporary and until the end of March, with the main objective of minimising the impact on employees, the factory’s operations, and the value chain,” Nestlé said.

The factory has 189 employees. Around 70% of them are affected by the measure.

Fernando Martín Páez, general secretary of the Food Industry Workers Union (STIA) of the Villa María area told local media: “They are not selling. Therefore, they are overstocked and they made the decision to stop production in March and part of April.

“We have suggested that the company lower prices and put the products on the market to get rid of excess stock but that the workers should not be the variable of adjustment.”

In 2019, Nestlé invested SFr12m ($13.2m) to increase the output of ready-to-drink brands Nesquik and Nido to 10m litres per day.