Zimbabwe has reassured food giant Nestlé on the safety of its staff after a dispute on buying milk from President Robert Mugabe’s farm.

Prime Minister Morgan Tsvangirai said on Wednesday that food giant Nestlé had overreacted in suspending its operations in Zimbabwe.

Swiss food giant Nestlé has shut down its Zimbabwe unit after a week of harassment from government officials.

A row over Nestlé’s business dealings with Grace Mugabe is likely to spook many other foreign companies in Zimbabwe.

Three days after defending its decision to buy milk from Grace Mugabe’s farm, Nestlé Zimbabwe has decided to discontinue doing business it.

Afriforum on Wednesday called on consumers to boycott Nestlé products if it does not stop buying milk from a dairy farm belonging to Grace Mugabe.

Nestlé Zimbabwe on Monday defended its decision to buy milk from Gushungo Dairy Estate, a formerly white-owned farm taken over by Grace Mugabe.

The sugar price is the highest it’s been for 28 years and it could continue to rise, writes Lynley Donnelly