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.
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.