Tsvangirai says Nestlé closure an 'overreaction'

Prime Minister Morgan Tsvangirai said on Wednesday that food giant Nestlé had overreacted in suspending its operations in Zimbabwe, after authorities forced it to buy milk from “non-contracted” suppliers.

“Shutting down a plant ... I think it’s something that needs to be looked at.

This is an overreaction which is totally unnecessary,” Tsvangirai told a news conference.

“I am sure the minister of industry, who is responsible, is talking to the directors [of Nestlé], is talking to all the concerned stakeholders and that a solution will be found. So that it operates and even expands,” he said.

The shutdown apparently stems from a dispute on buying milk from a farm owned by the family of President Robert Mugabe.

Mugabe, who was at the press conference with Tsvangirai, said nothing about Nestlé‘s decision.

Nestlé in October stopped buying milk from the Mugabe farm, which was seized it from white farmers under his controversial land reforms.

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

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

“Since under such circumstances normal operations and the safety of employees are no longer guaranteed, Nestlé decided to temporarily shut down the factory,” the company said in a statement. - AFP