Farmers: Big dairy cheats us
By Wang Qingchu and Jin Jing |
October 25, 2011, Tuesday
|
Print Edition
Print Edition
A dairy-processing factory in northeast China's Heilongjiang Province that is part-owned by Swiss food giant Nestle stands accused of cheating farmers by shorting them on each barrel of milk.
Milk farmers in Shuangcheng City, which has the largest cattle-breeding industry in Heilongjiang, complained that each barrel of raw milk was claimed by the factory to be about 1 kilogram lighter on average when they sold it to Nestle Shuangcheng Ltd, according to Xinhua News Agency.
"Sometimes we will find three kilograms lighter," said Zhao Yongwu, a local milk farmer.
"They are always shortchanging us. Some of us are so angry that we would rather kill our cows than send the milk to Nestle," Zhao told Xinhua.
The joint venture is also accused of using its monopoly position to force dairy farmers to accept unreasonably low prices. Farmers must sell raw milk to Nestle Shuangcheng at prices 0.2-0.5 yuan per kilogram cheaper than the market price. Daily production of raw milk at Shuangcheng City is estimated at 1,200 tons.
Nestle said in a statement yesterday that it has launched an investigation with the local government. It is also setting up a hotline for farmers' complaints and is letting the government perform audits of its collection centers. "If such practice is true, we will solve it seriously and promptly," the statement said.
But complaints alleging fraudulent practices at Nestle Shuangcheng have been filed for many years. Xinhua's report said the local government has turned a blind eye to Nestle Shuangcheng's illegal practice because it's a major contributor of local tax revenue.
Earlier media reports said Nestle Shuangcheng turned in 370 million yuan in tax, accounting for 60 percent of the city's total tax income in 2004, citing statistics provided by the Animal Husbandry Bureau. The company paid 280 million yuan last year, or 17 percent of the city's total, Xinhua reported.
The Shuangcheng government reportedly owns about 3 percent of the shares in Nestle Shuangcheng, and the former mayor was the legal representative of the dairy producer.
According to Xinhua, the Shuangcheng government prevents local milk farmers from supplying dairy companies in other cities and allows no other dairy firms in Shuangcheng despite the presence of 20,000 milk farmers.
Nestle yesterday responded that "The JV relationship is a historical legacy. We are discussing this issue with the government and we'd like to find a way that can sustain the success of Shuangcheng's dairy industry."
In addition, Nestle Shuangcheng is accused of defying the government's calls to introduce milking machines for milk collection. Many breeders had to invest up to 8,000 yuan to buy the machines, a heavy financial burden for them.
Nestle Shuangcheng reportedly argued that using machines to collect milk could cause contagious diseases and infections among cattle.
Milk farmers in Shuangcheng City, which has the largest cattle-breeding industry in Heilongjiang, complained that each barrel of raw milk was claimed by the factory to be about 1 kilogram lighter on average when they sold it to Nestle Shuangcheng Ltd, according to Xinhua News Agency.
"Sometimes we will find three kilograms lighter," said Zhao Yongwu, a local milk farmer.
"They are always shortchanging us. Some of us are so angry that we would rather kill our cows than send the milk to Nestle," Zhao told Xinhua.
The joint venture is also accused of using its monopoly position to force dairy farmers to accept unreasonably low prices. Farmers must sell raw milk to Nestle Shuangcheng at prices 0.2-0.5 yuan per kilogram cheaper than the market price. Daily production of raw milk at Shuangcheng City is estimated at 1,200 tons.
Nestle said in a statement yesterday that it has launched an investigation with the local government. It is also setting up a hotline for farmers' complaints and is letting the government perform audits of its collection centers. "If such practice is true, we will solve it seriously and promptly," the statement said.
But complaints alleging fraudulent practices at Nestle Shuangcheng have been filed for many years. Xinhua's report said the local government has turned a blind eye to Nestle Shuangcheng's illegal practice because it's a major contributor of local tax revenue.
Earlier media reports said Nestle Shuangcheng turned in 370 million yuan in tax, accounting for 60 percent of the city's total tax income in 2004, citing statistics provided by the Animal Husbandry Bureau. The company paid 280 million yuan last year, or 17 percent of the city's total, Xinhua reported.
The Shuangcheng government reportedly owns about 3 percent of the shares in Nestle Shuangcheng, and the former mayor was the legal representative of the dairy producer.
According to Xinhua, the Shuangcheng government prevents local milk farmers from supplying dairy companies in other cities and allows no other dairy firms in Shuangcheng despite the presence of 20,000 milk farmers.
Nestle yesterday responded that "The JV relationship is a historical legacy. We are discussing this issue with the government and we'd like to find a way that can sustain the success of Shuangcheng's dairy industry."
In addition, Nestle Shuangcheng is accused of defying the government's calls to introduce milking machines for milk collection. Many breeders had to invest up to 8,000 yuan to buy the machines, a heavy financial burden for them.
Nestle Shuangcheng reportedly argued that using machines to collect milk could cause contagious diseases and infections among cattle.
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