Walmart's South African acquisition links small, local farmers into global supply chain

02 Dec 2010

Source:  Procurement Leaders

Wal-Mart has announced that it has offered to acquire 51% of the shares of South African retailer Massmart Holdings Limited, adding that the move would benefit small African farmers by linking them into its global supply chain.
Doug McMillon, president and CEO of Walmart International, said: "This acquisition will allow us to bring to South Africa our significant experience in connecting small farmers with Walmart's global supply chain, boosting farmer income as well as helping them improve the quality of their produce.

We hope to help South African suppliers grow their businesses, become more efficient, environmentally friendly and ultimately more competitive."  He went on to argue that Walmart can drive "meaningful value creation through enhanced buying efficiencies, expanded distribution and logistics capabilities and sharing of global best practices in retail formats and information technologies."

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