How does a foreign company gain access to such a large food market like China? Build infrastructure and train people in China to create and build supply chains. Nestlé SA is doing just that with the Chinese dairy market by spending millions of dollars to teach farmers how to care for their cows.
Nestlé will guarantee bank loans for [Chinese] farmers to buy more cattle. The company also plans to set up "cow bases," at which small-scale farmers will pay to have their cattle professionally managed.
This strategy will help Nestlé with its supply needed to create its branded dairy products like Carnation, Coffeemate, and Nido for children.
