Star Farm (SF) Pakistan is an auxiliary of Metro Cash & Carry Pakistan, which itself is a subsidiary of a German group Metro AG, one of largest businesses in self-service wholesale trade in the world. In 2011 Metro established Star Farm, with a mandate to “add value to food supply chain”. To integrate supply chain, Star Farm has established a network of lead farmers and traders in various regions across Pakistan, who act as its aggregators, procuring fruits and vegetables from farmers. Under this arrangement, Star Farm faced challenges pertaining to quality requirements as high rejection rates were experienced when the produce reached Metro.
In order to address these challenges, expand their share and supply more to Metro, Star Farm needed to link growers to end markets, by purchasing fruits and vegetables directly from farm gates through its own procurement officers and selling it to domestic Metro stores across Pakistan. Therefore, MDF supported SF to directly procure fruits and vegetables from farmers, located across Pakistan, focussing on seven value chains, namely, potato, onions, tomatoes, melons, mangoes, apples and citrus through hiring Assistant Project Officer, hiring Procurement and Finance officers and subscribing sourcing Software/Application. Under this new arrangement, Star Farm procurement officers would inspect product quality on farm gate and ensure it meets Metro’s requirement before it gets transported to Star Farm warehouse thus resulting in lower rejection rates. This intervention with Star Farm will offer farmers an opportunity to save money by reducing their transaction costs, offering reliable and less costly access to inter provincial trade and enable Star Farm to expand its operations by sourcing quality produce directly from farmers and supplying to Metro.