Zimbabwe: Nestle to stop buying milk from Mugabe family
Date: 2 Oct 2009
Nestle has said that it will no longer buy milk from a farm that was siezed from white farmers which is now owned by the wife of Robert Mugabe.
The company said that it had supported farms providing milk as the country's dairy industry had teetered on the edge of collapse. It had been buying from the Gushongo Dairy Estate as a temporary arrangement, but would switch back to buying from the Dairy Board of Zimbabwe.
Nestle said that it had a long-term commitment to Zimbabwe, but that circumstances around land reform had made it difficult to avoid problems as it tried to keep supplies flowing. The Mugabes are still subject to international sanctions although the sanctions do not cover this sort of trade.
Zimbabwe's controversial policy of land reform has seen a sharp decrease in farm production, as well as astronomical inflation, leading to shortages of most basic commodities.
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In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
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