CARREFOUR China tries buying fruit and vegetables directly from farms

Planet Retail 20 Mar 2008

According to local Chinese press reports, Carrfour China west division has signed contracts with local farms to buy fruit and vegetables directly from those farms. Carrefour said that the direct purchase will help lower down the retail price by 20%. Before fruit and vegetables has to go through many tiers of distributors till they reach Carrefour stores. For example, the price of radish is only CNY0.24 per kg from farms but rises to CNY1 in Carrefour stores after five tiers of distributors. Carrefour in Chengdu is looking forward to increasing its direct purchase from farms to 40-50% of total fresh produce in late 2008.

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