Magnit and the Potato Union have agreed to cooperate to develop a mutually beneficial partnership between the retailer and suppliers. The Potato Union, which unites more than 90 participants in the Russian potato and vegetable market from Kaliningrad to the Krasnoyarsk Territory. The parties have created a platform for joint resolution of current issues and improvement of the institution of direct long-term contracts, where everyone can become a participant.
The focus group included experts from Magnit, Potato Union and partners of the Agrocontracting project, which the retail chain has been developing for more than five years.
The project includes about 65 farms, including small ones. The share of sales of products in the company's stores received under agricultural contracts is about 30% in the vegetable and fruit category. The creation of a working group will allow suppliers to exchange information with the retail network in the "single window" mode.
The Agrocontracting project of Magnit involves the conclusion of contracts with Russian farms for future crop deliveries. This allows farmers to have a reliable partner, be confident in the sale of their products, and companies to purchase vegetables and fruits without intermediaries and control the entire production chain, which means offering customers high quality goods at affordable prices.
Source: en.potatosystem.ru