Tesco Lotus helping shore up prices of fruit by purchasing directly from cooperatives

[webfact]

Tesco Lotus helping shore up prices of fruit by purchasing directly from cooperatives

BANGKOK, 20 May 2015 (NNT) – The Ministry of Commerce is collaborating with grocery and merchandise retailer giant Tesco Lotus in preventing low fruit prices, by having the latter buy fruit directly from farmers' cooperatives for its stores.

Ministry of Commerce deputy permanent secretary Vuthichai Duangratana presided over the opening of the event 'Tesco Lotus returns fresh, sweet happiness via delicious Thai fruit', which was a project under the ministry's scheme to promote the consumption of Thai fruit and OTOP products.

The project facilitates linkages between seasonal fruit producers and the market, by having Tesco Lotus buy rambutan, mangosteen, longan, salak and langsat from select cooperatives.

Some 10 million kilograms of the fruit will be purchased from the cooperatives to be sold at roughly 1,800 stores operated by Tesco Lotus in Thailand.

Mr. Wutthichai said that this year, the ministries of commerce and agriculture have been implementing a system-wide management of produce since the beginning of the fruiting season, in order for the produce to be released in provinces that do not grow the fruit as well as in neighboring countries.


-- NNT 2015-05-20

[Mango Bob]

You would think they would have been buying their fruit product from cooperatives for years.

[dru2]

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

[SamuiRes]

I believe (here in Samui anyway) they have been buying local produce for years and feel obliged to do so. The downside is the locals sell all the poor quality to Tesco and the better quality goes to the local fresh markets. Tomatoes are the best example where you frequently find rotten and damaged goods on the shelves. Consequently I always try and buy fruit and veg at the fresh markets at a lower price and better quality.

[janpharma]

Prices at big Tesco still a lot more interesting than at local markets: ex: 1 kilo tomatoes at Tesco 27.- THB; local vendor 50.-THB...probably because they see farang. When I told them they act like thieves at the market, they went down to 40.-THB/kilo. So, I know where to go...

[Katipo]

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

Buying directly from co-operatives and not a middle man could benefit both the producer and the consumer.

[Manbing]

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

It doesn't support consumers it supports producers.

Its about creating a balance. This sort of market tweaking happens across most production industries to limit the fallout in times of overproduction and underproduction.

It also means that local, as opposed to foreign merchandise can reach a reasonable market value.

For example if you are a farmer and its a year of significant over production, your land will only ever produce a certain amount of produce. If every other farmer has a bumper crop, the value of that produce will drop. Costing you significant income, if say the value of your crop drops by 50% per tonne. (That's apparently a good year).

In other years weather conditions might decimate most of your crop, (and everyone else's), you still don't make much, just more per tonne because of increased demand. (that's considered a bad year).

This way corporations and producers and customers come to a balanced price agreement, which still allows the farmers to pay their bills corporations to allocate fair prices and customers to afford to buy the produce.

[lucky11]

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

It benefits the local fruit producers by giving them a fair price for their produce.

[ezzra]

You would think they would have been buying their fruit product from cooperatives for years.

You be right to think so, but go figure, anyway, I never liked their fruit and vegies quality,

they always looked haggard and second had like and priced like a boutique products...

[MaeJoMTB]

I've never found fruit cheap in Tesco (or any other supermarket).

I like to buy direct from the farmer at a road side stall (when possible).

[winstonc]

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

It benefits the local fruit producers by giving them a fair price for their produce.

tescos buy to benefit themselves ..look how they nearly ruined farmers in the uk.they are an awful company to trade with ..they hold all the cards ....look it up im telling porkies

[wabothai]

As in the rest of the world they will squeeze the farmers.

[BuaBS]

It's not just Lotus , Big C 's fruit is very expensive too.

Only when NOH , are in season , there are promotions.

The market is much cheaper .

[Doc46]

Prices at big Tesco still a lot more interesting than at local markets: ex: 1 kilo tomatoes at Tesco 27.- THB; local vendor 50.-THB...probably because they see farang. When I told them they act like thieves at the market, they went down to 40.-THB/kilo. So, I know where to go...

Get the wife /girlfriend to go shopping for you,,,,,,saves a bundle,,,,& you can stay home

[SoilSpoil]

Problem with veggies sold at the markets is formalin to keep them ' fresher'

http://www.bangkokpost.com/lite/topstories/396653/food-vendors-criticised-over-formalin-use

Always try to find an organic food source, which shouldn't be difficult in the country side. In Bangkok, you have Lemon Farm everywhere and also Villa.

Bit more expensive, but at least your body won't turn in a mummy.

Edited May 20, 2015 by SoilSpoil

[maidee]

something 30 baht/ kilo in tesco

the farmer gets max 10 baht / kilo

that is the truth

[thailandforumaddict]

what utter BS when we know that supermarkets are one of the cause why farmers are so poor...

[thailandforumaddict]

This is because some people have ridiculous ideas and dreams like this that farmers and consumers are cheated. Open your eyes !

Why would Tesco Lotus do this, and how does propping up fruit prices benefit the consumer?

Buying directly from co-operatives and not a middle man could benefit both the producer and the consumer.