Three questions with Markus Bobenhausen on the first three-party agreement in vegetable cultivation

Three-party agreements bring together agriculture, processing, and trade in a joint, multi-year partnership. They specify binding quantities, fair cost and risk sharing, and joint sustainability and quality targets. Transparency, long-term planning security, and regular joint review of the agreement parameters are central to these agreements. In addition, the parties commit to joint development projects, for example in digitalization and more efficient cultivation methods.

Another new feature is that all three parties sit together at the negotiating table and make decisions on an equal footing. The contract creates a reliable basis for the future, especially for agriculture.

REWE Group is a pioneer because the company is the first major retailer in Germany to systematically integrate three-party agreements into its supply relationships – with the aim of involving farmers as equal negotiating partners. The presented agreement with Landfrisch is the first of its kind in the field of open-air cultivation. It is important to know this: Growing fruit and vegetables is extremely demanding. Seasonal fluctuations and weather conditions play a major role here and pose challenges for producers.

REWE and PENNY are setting new standards in transparency, fair producer prices and planning security with three-party agreements and are strengthening regional supply security. REWE Group’s Competence Center for Agriculture played a key role in developing the approach.

The cooperation includes vegetable products such as iceberg lettuce, romaine lettuce, kohlrabi, pak choi, lettuce, pointed cabbage and kale, which are produced by the two growers for REWE and PENNY. The products are mainly available in the west of Germany, but also in REWE and PENNY stores in other regions.