Metro Retail direct-to-market tie-up with small farmers set for expansion – BusinessWorld Online
METRO RETAIL Stores Group, Inc. said it is seeking to expand its direct-to-market partnership with smallholder farmers beyond a current ongoing program in Cebu province.
The partnership with Gulay Farmers Cooperative is helping supply produce to eight retail stores in Cebu, the company said in an e-mail.
Metro Retail said the arrangement provides a “structured and reliable” supply chain with a direct-to-stores model that cuts out middlemen and gives farmers access to mainstream markets.
The cooperative, meanwhile, assists with regulatory compliance, logistics, and quality control, allowing farmers to focus on increasing productivity and crop quality.
Since its launch in 2020, the program has directly benefited 500 farmers, supplying about 60,000 tons of produce to Metro Retail stores, the company said.
It said smallholder farmers typically struggle with bringing their produce to large retailers due to strict documentation requirements, fluctuating market prices, and logistical constraints.
“Many farmers are unable to secure business permits or tax registrations, limiting their access to formal retail markets,” it said.
“Additionally, the lack of an efficient distribution system means that much of their produce goes to waste before it even reaches consumers,” it added.
Metro Retail said the model allows it to offer fresher, high-quality produce at competitive prices while ensuring fair compensation for growers.
Metro Retail operates 71 locations across Luzon and the Visayas under the brands Metro Supermarket, Metro Department Store, Super Metro Hypermarket, Metro Value Mart, and Metro Home and Lifestyle. — Kyle Aristophere T. Atienza