Nestlé to cut ties with Mugabe dairy farm

Posted by Daniel Palmer on 5th October 2009

Nestlé Zimbabwe has announced that they will no longer be receiving milk from the Gushungo Dairy Estate owned by the wife of President Robert Mugabe from Sunday 4 October.

Up to 15 per cent of their Zimbabwean milk supply has been sourced from the Grace Mugabe-owned farm after half of their contracted suppliers went out of business early in the year.

The Swiss company maintained, in the face of heavy recent criticism, that a food shortage in the country would have been exacerbated had they not sourced supplies from the farm of Mrs Mugabe.
“In light of the recent controversy surrounding our relationship with the Gushungo Dairy Estate, we believe that this announcement reflects our long-term commitment to Zimbabwe while acknowledging the specific circumstances around these events,” the company added in a statement.

Mrs Grace Mugabe is subject to sanctions from the EU, but Switzerland is not part of the EU and, consequently, Nestlé is not bound by those conditions.