Swiss multinational Nestlé admitted buying milk from a farm seized from its white owners and now owned by the wife of Zimbabwean dictator President Robert Mugabe. Britain's Sunday Telegraph said up to a million litres of milk are being sold to Nestlé a year from the farm. The company denies it has a contract with the farm, saying it began buying milk on a cash-on-delivery basis after other suppliers went out of business. Because Nestlé is based in Switzerland it is not bound by EU & US sanctions against Grace Mugabe, her husband and other Zimbabwean officials. The company says that since the collapse of Zimbabwe's dairy industry it has been forced to buy milk on the open market "from a wide variety of suppliers on a non-contractual basis" for its factory in Harare.
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