Global retail giant Wal-Mart has further consolidated its presence in the Chinese retail sector with the opening of its 63rd Direct Farm project in Shanghai - the first in that city.
The Direct Farm project applies the company’s experience in sustainable farming to China’s supply chain and provides education to growers about planting techniques and market adaptability, said a report on China’s eastday.com website. It added that the project would cover around 485ha and benefit around 12,000 farmers.
Wal-Mart corporate affairs director of east region Jaeson Huang said the company was committed to sustainable development in China. “The Direct Farm program is a great example of Wal-Mart’s approach to sustainability. It’s a multi-win program benefitting the enterprise, the environment, customers, farmers and the local economy. With this project in Shanghai, we will bring high-quality fresh vegetables to consumers and return what we save in purchasing and transportation to consumers in the form of lower prices.”
Ying Ou from the Shanghai Municipal Agriculture Commission said the project has opened an ‘express line’ for fresh produce to enter Wal-Mart stores from the Yangtze River Delta. “This not only brings considerable economic benefits to local farmers, but also strongly promotes the development of the local economy according to its own strengths,” reported eastday.com.
Speaking to the China Daily Wal-Mart purchasing manager Fu Hui explained that as part of the project Wal-Mart leases farmers’ land and contracts them to grow farm produce which it then purchases. “Contracted farmers can expect an income of Yn165,000 (US$24,746) per hectare a year, compared with the average income from individual farming of Yn15,000 (US$2,250).
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