Nestle to stop Mugabe milk deal

Swiss multinational Nestle says it will stop buying milk from a farm owned by the wife of Zimbabwe's President Robert Mugabe.

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Nestle said it bought milk from farms including Grace Mugabe's Gushungo Dairy Estate to help the country as its dairy industry neared collapse.

The farm was one of many seized from white farmers under Mr Mugabe's controversial land reforms.

Nestle said its temporary arrangement had now come to an end.

The Swiss firm said that the Dairy Board of Zimbabwe would resume buying from the Gushungo estate and seven other farms, and that it would stop receiving milk from them on Sunday.

"In February 2009 the food and economic crisis in Zimbabwe reached a level where the dairy industry was at real risk of collapse, and the Dairy Board was no longer able to buy milk from these eight farms," the statement said. read more
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