Food Giant Nestlé Closes Milk Processing Plant in South of Brazil

RIO DE JANEIRO, BRAZIL – Nestlé closed the Palmeira das Missões plant in the state of Rio Grande do Sul, on Monday, July 1st.

According to what the manufacturer reported to the column “Acerto de Contas”, the unit’s milk collection will be taken up by the operation in Carazinho.

Furthermore, the purchase of milk from the 127 producers in the region will be upheld. The current collection stands at 100 thousand liters per day.

Nestlé fired eighteen people when the plant closed. According to the president of the Federation of Workers in the Food Industry of Rio Grande do Sul, Paulo Madeira, operations in the unit were already being reduced.

When the plant was established in 2006, the promise was that it would be among the country’s top five in milk processing. The investment announced at the time was R$70 million (US$17.5 million) and the creation of 500 direct jobs. The plant was inaugurated in 2008.

In the note, the company says it will maintain the buildings to sell or rent. Regional Deputy Jerónimo Goergen said that Nestlé would move to Carazinho because it will be cheaper for the company. He believes an outsourced company would need to take over the operation on site, and this is difficult.