Missfresh Expands China-wide Direct-Supply Vegetable Farm Network to Total More Than 1,300 Hectares
Missfresh Limited (“Missfresh” or the “Company”) (NASDAQ: MF), a pioneer in China’s neighborhood retail industry, has just signed an agreement to add nearly 70 hectares of land in Luliang County in Yunnan Province to its China-wide vegetable farm network. This increases Missfresh’s nationwide network of vegetable farms – which directly supply the Company with fresh vegetables – to more than 1,300 hectares.
With a business strategy that prioritizes high-quality growth and profitability, Missfresh continuously makes comprehensive upgrades to its product supply chain. By establishing a supply chain network of farms, factories, and processing facilities across China in order to directly source products from its origin, the Company eliminates middlemen, improves efficiency, and reduces procurement costs.
Laicang Xiao, who is in charge of Missfresh’s vegetables segment that receives a direct supply of fresh produce from the Company’s farm network, shared that Missfresh’s agreement to directly source vegetables from Luliang County’s farms employs an order-based planting model, which uses sales forecasts to determine production levels. This allows Missfresh to guarantee the stable supply of vegetables from Luliang County as well as closely control the quantity, quality, and cost of the produce.
Other than Luliang County, Missfresh already directly sources its fresh vegetables from Mengcheng County in Anhui Province, Zhongwei City in the Ningxia Hui Autonomous Region, Zhangjiakou City in Hebei Province, and Tai’an City in Shandong Province – amounting to a total area of more than 1,300 hectares.
Missfresh’s strategy of directly sourcing goods from its place of origin is paramount to not only ensuring the stability of product supply but also enhancing the company’s influence on the different stages in the supply chain.
Industry insiders have shared that Missfresh’s focus on establishing a dense supply chain network for directly sourcing products will help the Company improve the cost-effectiveness of its products, reduce procurement costs, and increase overall gross profits.
Missfresh currently sources its products – such as fresh seafood, vegetables, fruits, meat, eggs, and fast-moving consumer goods – directly from almost 200 farms and 350 factories and processing facilities across China.