In order to reduce its raw milk powder output in an already oversupplied market, Nestlé sold a 95 percent stake in one of its raw milk facilities in China. The former Nestlé Hulunbuir Ltd will become the joint venture Saishang Nestle Hulunbuir Ltd, with 95 percent of the stakes held by Longhua Zhongchen Enterprise Management Consulting Centre and 5 percent held by Nestlé.
According to Song Lian, an independent diary expert, it’s a shift in Nestlé’s investment priorities. “Nestle is shaking off asset-heavy businesses and shifting to asset-light businesses,” said Song. “Low temperature yogurt, which is more lucrative, is a current priority for Nestle’s dairy business.”
Read more about the subject on thecattlesite.com.
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