Nestlé Will Invest R$150m in Brazil’s Dairy Production

Nestlé intends to spend R$150m in Brazil from 2025 to 2027 on measures aimed at strengthening its relationship with milk suppliers. The company said the initiative will focus on raising productivity, improving the quality of milk used as raw material and maintaining a long-term supplier base.

The investment comes as the structure of Brazil’s dairy industry changes. Estimates from Embrapa show that the number of establishments selling milk fell from about 930,000 in 2006 to 600,000 in 2017. Producers that have stayed in the business have increased their operating scale and invested in technology, according to the information reported by AgFeed.

Nestlé currently purchases roughly 1bn litres of fresh milk in Brazil each year. It also buys about 100m litres of whey. The company plans to raise its whey production by 15% by 2029, citing growing demand for dairy products with high protein content.

The programme will include spending on management, technical support and regenerative farming practices. Barbara Sollero, Nestlé’s executive manager for milk procurement, told AgFeed that the strategy gives priority to the professionalisation of producers. The company also plans to offer financial incentives to suppliers that introduce improvements in quality and sustainability.

Nestlé said the measures are intended to reinforce the dairy supply chain and contribute to the competitiveness of Brazil’s milk sector, including in international markets. The report was produced by eDairyNews using information published by Money Report.