Nestlé temporarily halts production at Argentina dairy plant

USA – Nestlé has announced a temporary suspension of production at its dairy facility in Argentina’s Córdoba region, citing the need to manage excess stock. 

The Swiss company stated that operations will be halted for a month starting in March, attributing the decision to a decline in exports and an adjustment in local demand.

The factory, which produces a range of powdered and UHT milk products under brands such as Nesquik and Nido, employs 189 workers. 

Reports indicate that approximately 70% of them will be affected by the production pause. Nestlé emphasized that the measure is temporary and aimed at minimizing disruptions to employees, factory operations, and the broader supply chain.

Fernando Martín Páez, general secretary of the Food Industry Workers Union (STIA) in the Villa María area, expressed concerns over the impact on workers. 

“They are not selling. Therefore, they are overstocked and they made the decision to stop production in March and part of April.” 

He further noted that the union had proposed alternative solutions, stating, “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.”

According to reports, Nestlé previously invested US$13.2m in 2019 to expand the plant’s capacity for ready-to-drink dairy products, increasing daily output to 10 million liters. 

The company has not indicated whether further adjustments will be made following the scheduled resumption of operations at the end of March.