German retailer forms binding, five-year partnership in what it says is country’s first three-party agreement for fresh produce
Leading German retailer Rewe Group has signed a so-called ‘three-party’ agreement with producer organisation Landfrisch and two of its producers in North Rhine-Westphalia.
The model, which is understood to be unique for fresh fruit and vegetables in the German food retail business, is said to put retailers, producer organisations, and farmers themselves on an equal footing, by creating a “binding and transparent” deal.
As a result, Rewe has guaranteed to buy the suppliers’ products for a minimum term of five years.
The group, which has previously introduced three-party agreements for dairy and meat products, says the new model enables longer-term planning by all parties.
In the demanding world of fruit and vegetable supply, anything that improves a supplier’s ability to plan ahead is to be welcomed.
With costs under pressure and climate stress an increasingly common factor, Rewe’s new approach represents an opportunity to develop more reliable supply lines and potentially enables more targeted investment in new technologies and automation which can make farms more sustainable in the longer term.
“As the first food retailer in Germany, we are sending a clear signal for transparency, commitment, and partnership in the supply chain with this new three-party agreement,” says Marc Rademacher, member of the management board for purchasing at Rewe Group.
“We are creating stability for producers, strengthening regional agriculture, and opening up prospects for the future-oriented development of the farms – this is a core principle of responsible business practice for us.”
Close collaboration
Under the terms of the deal with Landfrisch, product prices are to be determined through close consultation between the contracting partners, based on the current market situation.
The goal, they say, is to create “fair and reliable” framework conditions that provide planning security and promote the farms’ further development.
“Our goal is to sustainably strengthen regional and German production along the value chain and to jointly create solutions that are economically viable while simultaneously further developing quality and sustainability,” explains Landfrisch board member Johannes von Eerde.
Landfrisch represents a total of 65 producers in Germany with over 3,000ha of open field production and approximately 110ha of greenhouses combined.
The organisation consolidates its members’ fruit and vegetable products for marketing and handles key services such as packaging, storage, and logistics.
Its grower partners, BT Gemüse and Stoffers, mainly produce lettuce, iceberg lettuce, kohlrabi, pak choi, mini romaine lettuce, kale, and pointed cabbage. These products are sold nationwide in Rewe and Penny supermarkets, both part of the Rewe Group.
For Heinz Stoffers, 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 foundation for sales and investments. This is an important signal for the future of German vegetable farming.”
BT Gemüse also sees it as a strong sign: “We are very pleased with this clear commitment to German agriculture and regional products. Such long-term partnerships create trust, stability, and a future perspective – and that’s exactly what our farms need today more than ever.”
