Nestlé is set to temporarily suspend production at one of its powdered milk and dairy product facilities in Argentina, starting in March.
The Swiss multinational aims to halt output for a month at its Córdoba facility to effectively manage excess inventory.
According to Nestlé, the decision comes in response to declining exports and a necessary “adjustment” in local market demand.
The facility specializes in producing whole powder milk, instant powder milk, skimmed powder milk, and UHT milk. Additionally, it manufactures ready-to-drink products for prominent brands such as Nesquik and Nido.
“It is important to clarify that this measure is temporary and will last until the end of March, with the primary goal of minimizing impacts on employees, factory operations, and the broader value chain,” Nestlé stated.
The plant employs 189 individuals, with approximately 70% of these workers being affected by this decision.
Fernando Martín Páez, general secretary of the Food Industry Workers Union (STIA) in Villa María, stated to local media: “They are not selling. Therefore, they are overstocked and they made the decision to stop production in March and part of April.”
He further added, “We have suggested that the company lower prices and put the products on the market to get rid of excess stock, but that the workers should not be the variable of adjustment.”
In 2019, Nestlé invested SFr12m ($13.2m) to enhance the production capacity of ready-to-drink brands, Nesquik and Nido, ultimately reaching 10m liters per day.
