Portrait of Benjamin Wölk

Policy

22 November 2024

Three questions with Benjamin Wölk on the cooperation between PENNY and Die Faire Milch

At the end of October, PENNY launched a milk that brings farmers to the negotiating table in its stores across Germany: "Fair Milk x milprima". The whole thing is based on a pioneering contractual construct, a so-called "three-party contract". In our "Three questions with" series, Benjamin Wölk, Head of Fresh Produce Purchasing at PENNY, explains the concrete improvements this step brings for farmers and why the milk is also a political symbol.

Reading time: 4 min.

  • You and your team deal with the procurement of dairy products, among other things, on a daily basis. How did the idea for “Die Faire Milch x milprima” come about?

    Thanks to our close and regular contact with farmers – also via the Competence Center for Agriculture – we know exactly what moves them. The issue of a secure economic basis is a top priority and has become even more important in recent years. But for us as a food retailer, it is difficult to define when this economic security is given. We don’t negotiate directly with farmers, but with intermediaries such as dairies. We are changing this with the “Die Faire Milch x milprima” product by means of a three-party contract, in the spirit of a transparent partnership with local farmers.

    So we approached Die Faire Milch (DFM) and considered how we could bring the farmers to the negotiating table as a third party. In this specific case, the FairFood producers’ cooperative. Together, we then set about overcoming the hurdles in terms of competition and antitrust law. Within a year – and we can be very proud of that – we had the contract ready. A pioneering work that can serve as a blueprint for other products and sectors. We have achieved a real pioneering achievement here with regard to domestic agriculture.

    Another important point is that we are guided by the Milk Marker Index (MMI), which is open to scrutiny and reflects producer costs on a scientific basis. In this way, we have achieved our goal of strengthening the economic basis of farmers, the backbone of the domestic food supply. Now it is up to the customers to buy the milk and make the project a lasting success.

  • You have described the challenges faced by dairy farms. Politicians in Germany and Brussels are also discussing measures to improve the situation. What are the specific features of your product?

    To put it bluntly: while discussions are still going on in Brussels, we already have the product designed and bottled on the shelf. In the spirit of REWE Group’s Competence Center for Agriculture, we don’t just talk, we act. And we do it quickly and concretely. Fair “Milk x milprima” is now available in more than 2,130 PENNY stores throughout Germany. The product is also characterized by points such as GMO-free feeding and cultivation, the absence of feed from overseas, animal welfare or environmental projects or land-based agriculture.

  • The “Fair Milk x milprima” product has been available in all PENNY stores in Germany since October 29. What message would you like to pass on to customers?

    With milk, we make it very easy for our customers to actively support the preservation and further development of local agriculture. After all, cows are not just part of the postcard idyll, they secure our supply of high-quality food. And this commitment doesn’t have to be expensive. As a discounter, we know the reality of our customers’ lives very well. Food must be affordable. We also keep this promise.

Portrait of Benjamin Wölk

About:

Benjamin Wölk

is responsible for the fresh produce department at PENNY.

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