Why Colruyt Group invests in Belgian food production and agriculture

Collaboration with farmers is crucial in Colruyt Group's vision for local food production and sustainability. The retailer works with more than 6,000 Belgian farmers. Around 600 of them are engaged in intensive, long-term partnerships, some of which are organised through cooperatives. "At the heart of our partnerships are clear agreements on volumes and pricing, underpinned by a long-term vision. We pay market-based prices and, where possible, provide additional support to cooperative organisations. We see it as part of our mission to help secure the future of local agriculture. Now more than ever, local food is the best choice," says the Food Production Director.  

One such partnership was established with Be-Avicop, a cooperative that brings together around twenty poultry farmers. Its members rear Belgian chickens for Colruyt Group in line with the Better Chicken Commitment standards, with a strong focus on animal welfare. Chair Delphine Ladouce: "We selected a slower-growing breed of chicken. Our chicks are hatched and reared in the same poultry house under natural daylight conditions. They have more space and benefit from enrichment features. As a result, they experience less stress and are far less likely to become ill. Over the past three years, we have not had to administer any antibiotics on our farm."

Colruyt Group actively promotes these Belgian chickens, despite consumers remaining highly price-conscious. "We are very pleased with this partnership. The conventional poultry market is characterised by constantly fluctuating prices. A longer-term collaboration such as this provides the stability we need, to invest more in animal welfare than ever before. It allows us, as poultry farmers, to be proud again of what we do," Ladouce emphasises. The result is a chicken that may cost a little more, but is healthier and of higher quality. At the same time, the retailer makes full use of every part of the chicken in its own production operations, incorporating them into a variety of preparations. This too helps to create added value.

The challenge for retailers is to reconcile their ambitions for high-quality, sustainable food with the need to maintain an affordable shopping cart for customers. According to Gunther Uyttenhove, Colruyt Group's own food production plays a crucial role in achieving that balance: "We have been developing in-house craftsmanship in food production for decades. Our coffee roasting activities, for example, date back to 1928. We produce efficiently and cost-consciously: our facilities are located close to our logistics operations, we maximise equipment utilisation and, unlike major branded manufacturers, we do not need to invest heavily in sales and marketing. In addition, our long-standing investments in green energy from wind and solar power, as well as our initiatives around water recovery, now provide us with a competitive advantage."

Looking to the future, Gunther Uyttenhove sees Colruyt Group's role as a food producer evolving increasingly towards health: high-quality, natural products with minimal processing, that remain convenient and enjoyable for consumers. "I'm thinking of straightforward meal components such as pre-cooked grains and grilled vegetables, protein-rich natural snacks, hybrid meat products incorporating plant-based ingredients and ready-to-eat legumes. We will continue to explore opportunities to build the shortest possible supply chains through collaboration with local partners," concludes the Food Production Director.