SHUANGCHENG, China, June 6, 2012 /PRNewswire-Asia/ -- Nestle (Euronext: NESTS) today held the groundbreaking ceremony for the Dairy Farming Institute, which will support the sustainable development and the accelerated modernization of the dairy industry in China. The groundbreaking follows an announcement Nestle made in January, in which the company committed to transform Shuangcheng, one of its largest fresh milk supply bases in China, into the country's benchmark for dairy farming and management best practices. The January 11th Memorandum of Understanding between Shuangcheng Municipal Government and Nestle engages the parties to jointly develop modern dairy farming practices. Under the agreement, a total of RMB 2.5 billion will be invested between all parties in the milk district over the next five years through a partnership between Nestle, the local government, investors and farmers. The Dairy Farming Institute is an important next step to put the MOU into practice and will focus on training dairy farmers and technicians. The first construction phase of the institute will be completed by the end of 2012. Training open to the whole dairy farming industry The Dairy Farming Institute occupies 600,000 square meters and is supported by three different types of training farms, including one cow base with 1,520 cows, which provides practical guidance for farmers working alone or on small farms to relocate to a professionally managed farm; one large farm with 1,200 cows and one mega farm with 8,000 cows to help those who own larger farms scale up their facilities and use more modern practices. The Institute demonstrates how modernized and professionally managed farms can improve efficiency in productivity. At the same time, it marks a new reference for an environmentally, socially and economically sustainable farming model, which will lead the direction of future dairy farming development.