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BIZCHINA> Companies
Direct-buy program benefits retail, agriculture
By Liu Jie (China Daily)
Updated: 2009-11-09 07:49

Direct-buy program benefits retail, agriculture

A customer shops for fresh fruit at a Wal-Mart supermarket in Loudi, Hunan province. The world's leading retail chain is using its Direct Farm Program in China to reduce operating costs, increase farmers' incomes and promote 'green' agriculture practices. [Newsphoto]

It was the third time for Wang Jianjing, a 58-year-old Beijinger, to buy winter jujube (dongzao in Chinese) within a week at a Wal-Mart hypermarket located in Wangjing, a residential community in northern Beijing.

"Winter jujube is just in season now. The fruit sold here is sweet, juicy and crisp. I also found the price (18 yuan per kg) is even lower than that at the open market," said Wang, who recently bought 2 kg as an after-dinner treat for a 10-member family reunion.

Nearly 700 km away, Wu Zhanjun, a farmer in Zhanhua, Shandong province, a well-known dongzao planting base in China, said he was pleased that 7,500 kg of his winter jujube was sold directly to Wal-Mart at 12 yuan (29 cents) per kg - 2 yuan higher than the purchasing price offered by local dealers.

"They (Wal-Mart) are also responsible for transportation, always a headache for me," Wu said.

Farm program

Direct-buy program benefits retail, agriculture

Both Wang and Wu are benefiting from the Direct Farm Program, under which Wal-Mart Stores Inc cooperates with the Ministry of Commerce and the Ministry of Agriculture to directly purchase agricultural products from farmers nationwide.

The program is based on the principles of guiding farmers, strengthening connections, promoting distribution channels and guaranteeing food safety, according to the government ministries.

Wal-Mart said that the Direct Farm Program helps farmers to upgrade their abilities to adapt to the market, encourages production and supports environmental protection in the agriculture sector.

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Direct-buy program benefits retail, agriculture How low can Wal-Mart go with price-cut strategy?
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In addition to purchasing agricultural commodities directly, the retailer is engaged in providing market information and free training sessions to farmers on scientific planting, green cultivation technologies and natural resources protection.

The Direct Farm Program optimizes the industrial supply chain and food safety standards, and also increases farmers' incomes, according to Wal-Mart (China) Investment Co Ltd.


(For more biz stories, please visit Industries)

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