The agreement has been signed via Dairy Partners America, Nestlé’s joint venture with New Zealand giant Fonterra.
It involves a partnership with leading producers Brazil Foods and Itambé to share best practices and raise supplier standards.
The aim is to lift milk production, while improving dairy farming practices across the country by encouraging other organisations to adopt the same standards.
Nestlé expects 2,260 farms to begin adopting recommended practices by the end of 2012.