August 27 2007, 09:30

Metro cash & carry Russia won't charge Russian agricultural producers willing to enter the chain

Metro cash&carry, the third largest company in Europe and the fifth largest company in the world, made an unprecedented announcement for the Russian trade in Nizhniy Novgorod during the opening ceremony of the 33rd trade center of small wholesale cash trade in Russia, dp.ru informs. Metro will fully stop charging the so-called "entrance fee" for the suppliers of the products grown by Russian producers in all regions of the country.

Dr. Andrea F. Martinelli, Regional Director of Metro cash & carry in Russia and Ukraine said at the opening ceremony of the new Trade Center:

"I am officially inviting all Russian local producers of agricultural products to the free cooperation, because our company creates the unprecedented beneficial terms of cooperation for the local growers. This means that any additional and special terms of the product entrance to Metro cash&carry Trade Centers won't be imposed onto local growers.

The regional producers and distributors will have a chance to build up the turnover of their businesses. Up to 40% of the assortment of fresh produce (meat and meat products, milk, fruits, vegetables, bakery products, etc.) of Metro cash & carry TC will be accumulated due to the local suppliers/producers.

Thanks to Metro system some of them will get an opportunity to promote their produce in the other regions of Russia, and in the foreign countries in the perspective. The most important tool of this process is the Russian production of goods and food under the well-known Metro trademarks: ARO, Metro Quality and some others".

Oksana Tokareva, the Manager of Government and PR Department, Metro cash & carry Russia, said to dp.ru:

"Metro provides the support to Russian agricultural producer to make them feel confident competing to the transnational companies and large federal monopolist suppliers.

Metro does not create the unequal working conditions for the importers and the producers of Russian products; to the contrary, our company supports those who have already been experiencing the unequal conditions comparing to the stronger players. Moreover, the support of Russian agricultural production is one of the priorities of the national programs supervised by Russian Federation government.

Also, Metro cash & carry prefers dealing with local producers in all 29 countries the chain works in".

Nikolay Gabyshev, the Managing Partner of Falcon Advisers investment company, pointed out:

"Metro company made a precedent in Russia. Now it is quite possible that the other foreign and Russian retail companies will follow this example. The process has started; nothing is able to stop it.

Naturally, only Metro works in cash & carry format in Russia; but I think, that the large companies - managers of hyper- and supermarket chains will also give up charging "entrance fee", because the suppliers will require the terms of cooperation similar to Metro conditions".