Nestlé announced $ 5.2 billion in investments and landed in the liquid milk market

Nestlé, the largest agribusiness company in the world, inaugurated a new production line at its Villa Nueva plant in Córdoba, in which it invested 480 million dollars and with whom arrives in the field of liquid milk. However, the local leader of milk powder, will not compete with the major product, such as La Serenísima and Sancor, but will focus on value-added products.

"This investment is part of a plan implemented over the past four years for a total of $ 5.2 billion, which we will renew in 2019 and for another four years for a similar amount. This is for all our products and the six factories we have locally"he said Infobae Gian Carlo Aubry, CEO and President of Nestlé Argentina, Uruguay and Paraguay

The company owns six factories in total in the country and produces and sells local brands such as Nescafe, KitKat, Nespresso, Eco de los Andes, Glaciar and Purina, among others. In 2018, it billed $ 17,700 million and dairy products accounted for 20% of the total.

"This new line allows us to produce liquid versions (ready to use) of value-added products with the UHT method, or ultra high temperatureheat treatment producing sterilized milk. We are in Argentina almost 90 years ago and we are still optimistic about the development of the country, beyond the contexts. A year ago, we produce Nesquik, but it's hot chocolate: it's our landing in liquid milk. We will launch 200 ml of Nido tetrapack milk, "explained the Swiss executive.

The specific investment at Villa Nueva includes a sterilization facility equipped with advanced technology, adaptation to the conditioning and refurbishment of boilers, a cooling system for the entire building. installation and automated warehouse.

Aubry ensures that the local market is 10 000 million liters a year, is a sector whose production has increased by 8% last year.

"There is more and more concentration, with many small dairy farms closed last year.In 2018, export competitiveness was good." It's a tough market, but the dairy has a good future in Argentina. We export powdered milk in general, but value-added milk in small containers now offers a possibility. We will not compete in the staple milk because there are very strong brands that are more likely to win the market. We aim for added value and we will be the first to have organic milk, for the local market and for export. The same with A2 milk, more digestible for children. These are all new developments and we are the first to realize them, "he explained.

In Argentina, the market for the sale of milks is traditionally liquid, unlike what happens in Brazil, for example, where most are powdered. Nestlé exports 80% of its products in this category to countries such as Brazil, Chile and several other African countries.

"There has been a general decline in consumption, butOn marketing, launches and various commercial activities, we resist and limit the decline in demand. With the devaluation, we were a little more competitive and that was driving the growth of milk powder exports for the region and other destinations, "said Aubry.