Under the agreement, Nestle will not hold ownership of the farm, but will instead offer advice on its management.
The new farm will be located near Nestle’s Hulunbuir grassland-situated Ergun Banner dairy plant, which was built in 2007.
According to Chinese state media outlet China Daily, Nestle has signed a memorandum of understanding with Old Barag Banner county government in the region to build the farm by the end of 2013.