Tesco Lotus develops it fresh food chain 'from farm to fork'
TESCO LOTUS is supporting small farmers by purchasing over 2,500 tonnes of leafy vegetables this year worth Bt2.6 billion, and the volume purchased increases every year.
Lopburi is one province providing these high-quality, safe vegetables fresh to the store.
The company is moving forward with its direct sourcing model – responding to consumer trends by buying vegetables fresh from farms. It also aims to lift standards of agricultural practice and provide income security for small growers through advance ordering and fair prices.
Niphon Farm in Lopburi province is one of many vegetable farms in Tesco Lotus’ direct sourcing programme which meets GAP and Q standards, and undergoes additional testing from Tesco Lotus to ensure its vegetables are free from chemical residues.
Niphon Farm owner Niphon Akharavilaiporn said, “I sell many vegetables to Tesco Lotus, including Chinese cabbage and long cucumbers. We are also currently developing small cucumbers and cherry tomatoes for them. All of my vegetables meet the good agricultural practice (GAP) standard which requires inspections of the plantation plot, including soil and water, testing for fertiliser and pesticides, and harvesting techniques. We supply 1,000kg of long cucumbers, 500kg of leaf Chinese cabbage and 500kg of Taiwanese Chinese cabbage to the retailer every day.
“Tesco Lotus has supported Niphon Farm in many ways. We’ve learned many aspects of production, from choosing high-yield, disease-resistant seeds to reducing chemicals and using biological agents just before harvesting. We have adjusted harvest times to deliver produce to Tesco Lotus DCs within 24 hours, and transport it with specially designed temperature-controlled trucks. Besides providing this knowledge, Tesco Lotus gives us advance orders for us to manage our planting, so we have no surpluses and we agree on a fair price beforehand which gives us a secure income.”
Tesco Lotus head of trading law and technical, Pornpen Nartpiriyarat said the company has always cared for customers and suppliers. As a result, it has adopted the direct sourcing model to benefit every party. Its customers get fresh, high-quality produce, while our vegetable growers get income security. Tesco Lotus places purchase orders well in advance and sets fair prices for the produce. The company also has its growers implement GAP, a global standard to ensure food safety.
“Direct sourcing, which avoids middlemen and consolidators, enables Tesco Lotus to have full traceability on the safety of our fresh produce,” Pornpen said. “Currently Tesco Lotus monitors the safety of our fresh food along the whole supply chain from farm to fork. After implementing the GAP standard at plantation stage, we conduct random tests of our products at packing houses, distribution centres and finally at Tesco Lotus stores, to ensure products are safe for consumers.”
Pornpen added, “Over 90 per cent of produce sold in Tesco Lotus now is directly sourced from farms, and our target is to source 100 per cent of domestic produce directly from farms, which will increase consumer confidence in quality and food safety, while supporting Thai growers to be stronger in the long term.”
