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Three-party agreement in German food retail

German growers, traders and retailers launch partnership model for sustainable vegetable cultivation

During Grüne Woche in Berlin, REWE Group, the producer organization Landfrisch AG, and two of its producers from North Rhine-Westphalia signed a three-party agreement. This model is unique in the German food retail sector in the fruit and vegetable segment: retailers, producer organizations, and producers are working even more closely together on an equal footing, creating a binding and transparent basis for partnership-based cooperation. This gives businesses the long-term planning security they need to invest in specialization and digitization measures, which require reliable partners along the value chain. The REWE Group had already introduced three-party agreements for milk and meat products in the past.

Fruit and vegetable cultivation is one of the most demanding areas of agriculture. Weather conditions, seasonal fluctuations, and high-quality requirements pose major challenges for companies. This makes reliable, long-term partnerships along the entire value chain all the more important. The new collaboration creates precisely this reliability and enables targeted investments in specialization and digital innovations that make companies more sustainable and future-proof. These include automated planting and harvesting technology, modern hoeing machines, and projects such as hall extensions, additional packing capacities, and the use of cooling technology with natural refrigerants.

© Hugo Huijbers | HortiDaily.com
Johannes von Eerde and Labinot Elshani from Landfrisch AG at Fruit Logistica 2024

Reliable framework conditions and planning security
"As the first food retailer in Germany, we are sending a clear signal for transparency, commitment, and partnership in the supply chain with the new three-party agreement. In doing so, we are creating stability for producers, strengthening regional agriculture, and opening up prospects for the future-oriented development of the businesses – for us, this is a core principle of responsible action," says Marc Rademacher, member of the REWE Group's purchasing management team.

Pricing for the products is determined in close consultation between the contractual partners and is based on the current market situation. The aim is to create fair and reliable framework conditions that provide planning security and promote the further development of the companies. "As a producer organization, we see this cooperation as an important step toward a long-term partnership based on trust, reliability, and mutual appreciation. Our goal is to sustainably strengthen regional and German production along the value chain and to jointly create solutions that are economically viable while further developing quality and sustainability," says Johannes von Eerde, member of the Executive Board of Landfrisch AG.

© Hugo Huijbers | HortiDaily.com
Christian Berghs-Trienekens (BT Gemüse) and Heinz Stoffers (Stoffers Gemüsebau)

Landfrisch represents a total of 65 producer companies in Germany, which produce on an area of over 3,000 hectares of open-field cultivation and around 110 hectares of greenhouse cultivation. The organization bundles its members' fruit and vegetable products for marketing and takes care of central services such as packaging, storage, and logistics—with a clear focus on regionality and sustainability. The main products of the participating producers, BT Gemüse and Stoffers, include lettuce, iceberg lettuce, kohlrabi, pak choi, mini romaine lettuce, kale, and pointed cabbage. The products are sold nationwide in REWE and PENNY stores, among others. As part of the partnership, BT Gemüse and Stoffers are investing specifically in innovative measures for the long-term development of their businesses.

For Heinz Stoffers (Stoffers Gemüseanbau), the new partnership is a significant step: "This three-party cooperation gives us the opportunity to significantly increase our planning security – in terms of cultivation, quantities, and quality. At the same time, we are creating a reliable basis for sales and investments. This is an important signal for the future of German vegetable cultivation." BT Gemüse also sees this as a strong sign: "We are very pleased about this clear commitment to German agriculture and regional products. Such long-term partnerships create trust, stability, and perspective – and that is precisely what our businesses need today more than ever."

Multi-year cooperation model
The basis for the cooperation is a long-term contract with an initial term of five years. The multi-year cooperation model with binding purchase guarantees ensures a balanced distribution of risk along the entire value chain. At the same time, it enables more precise and efficient production and processing planning, creates more transparency in pricing, and thus contributes to more stable consumer prices.

Visit the company at Fruit Logistica: Hall 20 | A-21.

For more information:
https://landfrisch.com/
https://www.rewe-group.com/

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