Unfold Prosperity

‘Ugly but tasty‘ in Bulgaria

Around a fifth of the Bulgarian fruit and vegetable harvest does not reach the shops because it does not meet trade standards in terms of shape, colour or size – even though there is nothing wrong with the flavour. METRO is tackling food waste caused by post-harvest losses through its new ‘Ugly but tasty’ initiative. For a low set price, METRO customers can fill a plastic-free bag with their choice of ‘imperfect’ fruit and vegetables. We also pay visits to farmers and provide them with information and training on this topic. The campaign is part of the wider ‘Nurtured with care in Bulgaria’ initiative. It helps increase the marketability of these ‘imperfect’ products and, as a result, the earnings potential of the participating producers. There are plans to extend the campaign to the rest of the product range.

Star Farm in China and Pakistan

Since 2007, our Star Farm activities have been helping farmers and suppliers in China meet internationally recognised quality standards, such as GlobalG.A.P., HACCP and the International Food Standard (IFS), and improve traceability and transparency in the supply chain. Star Farm is an agricultural consultancy that belongs to METRO and specialises in quality assurance systems and traceability solutions for agricultural produce. The company was set up in 2007 by METRO Wholesale in cooperation with the Chinese Ministry of Commerce and local authorities. The aim of Star Farm’s activities is to increase the proportion of goods sourced directly from producers, advance productivity and effectiveness in agricultural production, and improve food safety by modernising the supply chain. An integrated traceability solution for food products was introduced for this purpose in 2009. Customers can use the system to trace the origin of agricultural products in detail.

In 2011, a similar partnership was set up in Pakistan, which is now also helping to obtain the best products from the farmers and to pass on a high degree of transparency to the customers through the direct supplier relationship. As a sister organisation of METRO Pakistan, Star Farm is working on the same challenges to enhance the food supply chain through sustainable and innovative methods. In 2018, the Punjab Skills Development Fund (financed by DFID, UKaid) launched a special programme called ‘Big Push for Rural Economy – Agriculture Sector’. Over 12,000 people from 60 selected villages in 4 districts of southern Punjab (Bahawalpur, Bahawalnagar, Lodhran and Muzaffargarh) were trained in a number of agricultural skills. Star Farm pledged 150 agricultural specialists to teach comprehensive theoretical and practical aspects of pre- and post-harvest techniques, plant protection, best crop management practices, ideal irrigation practices and fertiliser recommendations. Another primary objective was to mobilise the farming community and large numbers of unemployed young people. For this purpose, Star Farm Pakistan set up 110 fully equipped training centres in the villages and demonstration plots for growing wheat and cotton, where the farmers can try out their newly acquired skills and apply best practices. Knowing that women are an integral part of the community and that involving them in such projects can have a significant impact on the economy, the organisers also arranged for 1,800 women (30 from each village) to receive training in skills such as kitchen gardening and food preparation techniques in their homes. Overall, over the past 2 financial years, we have trained over 20,000 farmers in China and Pakistan, including 5,000 women in Pakistan.

Sustainable Procurement Meeting in France

The first Sirha Green trade fair in Lyon in 2018 was all about sustainability in the food industry. To mark the occasion, we organised a Sustainable Procurement Meeting with over 60 of our own-brand suppliers. The aim of the meeting was to work with our suppliers to identify distinguishing features of sustainable business so as to help equip our joint business operations for the future. During the meeting, we introduced 15 fact sheets containing sustainability commitments relating to 5 areas. These are intended to serve as guidelines for suppliers concerning METRO’s requirements, but also support their own business activities. The 5 areas are: health, environment and biodiversity, compliance, animal welfare, and taste and culinary know-how. In various roundtable discussions, suppliers have shared their experiences of how they have tackled and overcome practical challenges in implementing sustainability in their business.

Sustainable procurement in India

In India, METRO works closely with the Food Chain Partnership, a Bayer Crop Science initiative. It brings together farmers, wholesalers, retailers and other stakeholders in the value chain to promote sustainable farming in emerging and developing countries and the supply of safe food. Local structures are strengthened, particularly in weaker economic regions. A key component of the partnership in India involves training the farmers on quality and environmental aspects. The current focus is on growing vegetables, especially tomatoes, lettuce, cauliflower and cucumbers. We aspire to organise 80% of our procurement through central collection points and platforms that follow the initiative’s guidelines.

Pilot project with small and medium suppliers in Russia

A pilot project in the Moscow and Krasnodar areas aims to support small and medium-sized food businesses. METRO is collaborating on this project with local authorities, Sberbank, the biggest Russian financial services company, and the International Finance Corporation (IFC). The aim is to use best practice to promote the development of competitive small businesses. Retailers with 50 to 150 square metres of store area are given the opportunity to run an efficient, sustainable Fasol franchise outlet – with METRO as a strategic partner. 47 Fasol branches have already opened in the Krasnodar area and 108 in Moscow. The aim is to have up to 120 in Krasnodar and up to 590 in Moscow by the end of 2020. In addition, recognised industry experts train commercial customers from the hotel and food service industry on strategy, marketing and HR topics. 20 restaurants have already taken part in the training programme.

Another part of the programme is aimed directly at local suppliers, specifically small and medium-sized food producers. Training sessions and advice help the participants comply with the criteria of the Global Food Safety Initiative (GFSI). The multi-stage programme includes audits, 3-day courses, on-site advice, and certification for suppliers that want it. 6 suppliers in the Moscow area have already completed audits and training courses. There are plans to extend the programme to other regions.

Local products in Bulgaria

The EU-label ‘protected geographical indications‘ (GIs) offer consumers a guarantee of authentic, regional specialities. METRO Bulgaria supports farmers by helping them obtain this label for their products – whether for fruit, vegetables or meat. 2 PGI applications are currently being prepared: by producers of a type of bean grown in the Smiliyan region, and by farmers who grow Reseleshki onions – a variety grown only in the Cherven Bryag region. METRO also collaborates with NGOs for this project.

Local products from Turkish regions

With the Local Seed project, METRO Turkey advocates the protection of natural and original seeds. Our national subsidiary works closely with local growers and producers and guarantees that it will purchase the complete harvest of agricultural products which are characteristic of the region and are grown using local seeds. These are 10 different tomato varieties, 4 pepper varieties and 1 specific cucumber variety. In addition, METRO Turkey organises GlobalG.A.P. training for farmers and helps them meet international hygiene and working standards. Depending on the season 15 products which are marked with a special logo are already exclusively available at the Turkish wholesale stores.

METRO Turkey is also committed to creating greater public awareness of products with the GI label. Customers can already find more than 130 of these products in Turkish wholesale stores. The national subsidiary supports local suppliers with the registration processes and has helped raise awareness of the issue through its activities at government level.

Supporting the culinary heritage of Bulgaria and Poland

METRO Bulgaria has launched a competition to celebrate the country’s culinary heritage. The aim is to collect old recipes – some of them dating back centuries – that have shaped the taste and culture of Bulgaria. Professional chefs and amateur cooks are all eligible to take part and send in recipes. The European Commission has included the project in its European Year of Cultural Heritage 2018.

To raise awareness for local culinary traditions among commercial customers in Poland, MAKRO Poland launched its Polish Culinary Treasures programme in 2018. The programme imparts knowledge and builds up a network around the issue. In the first 10 training sessions, 200 participants were introduced to around 30 historical Polish recipes – interpreted by famous chefs. To mark the 100th anniversary of Polish independence, MAKRO Poland also published a book of 100 traditional recipes.

Regional meat specialities from Austria

METRO Austria is gradually expanding its meat range, adding regional and sustainably produced specialities. For instance, meat from cows in the Reine Lungau biosphere park has been available exclusively from our wholesale store in Salzburg since October 2018. Together with small-scale farmers in the park area, METRO developed the idea of marketing beef from the cattle as well as milk. The cows are fed almost exclusively on natural green fodder from high pastures at an altitude of over 1,000 metres. METRO has also added Triestingtal beef to its product range in Lower Austria. And in January 2019, it will start selling Styrian and Lower Austrian Duroc pork with the AMA (Agrarmarkt Austria) quality label.

METRO Ukraine expands its Fermove project

Since 2016, METRO has been collaborating with the Ministry of Agrarian Policy and Food in the Ukraine and with seed suppliers to support local farmers. The partners distribute seed and fertilisers to the local farmers, who then supply the harvested produce to METRO. By committing to buy their produce, METRO is able to offer security to small producers in particular, and strengthen their development. In our wholesale stores, responsibly grown, healthy, local products are marketed under our Fermove own brand, which lets our customers support local production structures through their buying choices.

Since 2017, METRO has been using the same principle to raise seedlings, for example for tomato, pepper and aubergine plants, which are then sold in the stores. It is a way of motivating our commercial customers to become growers themselves. In a next step, we plan to expand Fermove into a global platform selling fresh produce from the Ukraine locally and across the EU.

Sustainable Fish Initiative in Japan

Quality standards for fresh fish are higher in Japan than in any other country. To increase sustainability standards in procurement as well, our Japanese subsidiary launched the Sustainable Fish Initiative in April 2018. The project is based on partnerships with suppliers, and providing more information for commercial customers to promote environmentally friendly, economical solutions. There have been preparatory meetings with the ASC, MSC and Chefs for the Blue – a new project involving top chefs from Tokyo – as well as government authorities, ministries, marine scientists and NGOs. METRO Japan will continue to expand the proportion of ASC- and MSC-certified products in its assortment between now and 2020 and introduce MSC and ASC Chain of Custody certification in its stores. As a fish expert, METRO Japan hopes to be selected as a preferred supplier for the 2020 Olympic Games in Japan.

Healthy product range in Germany

We aim to enable traders and their customers to eat a healthy diet and, in so doing, to promote sustainable lifestyles. Therefore, we not only carry a comprehensive range of fruit, vegetables and fresh products, but are also expanding our selection with the addition of vegan and special products such as lactose- and gluten-free items for consumers with food intolerances. Customers in German METRO wholesale stores can now find a range of 210 vegan products, including numerous cheese and meat alternatives, and lactose- and gluten-free products.

International customer survey on health and well-being

Between August and October 2018, the Corporate Quality Assurance Team at METRO AG conducted a customer survey in our 25 METRO countries to evaluate our healthy eating strategy and develop new measures. What do our commercial customers regard as a healthy product? What role do such products play in the success of their business? And how can we support them? The aim of the questionnaire, which comprised each 10 questions for our 3 customer groups (HoReCa, Traders and SCO), is to enable our customers to benefit more fully in future from the trend towards healthy lifestyles. In total, 20,225 customers completed all or part of the online survey. The top 3 findings are: the importance of 1) ultra-fresh, local produce, especially fruit and vegetables, 2) reformulated products identified by the phrase ‘less ...’ and 3) ‘free from’ foods, for example gluten-free products. Vegan and vegetarian products also fall into this last category.