Quality controlled logistics and distribution of high quality fresh vegetables and fruits for the domestic urban market in Egypt Egypt has a poorly developed supply chain for fresh fruits and vegetables. Standards for local market production are low and, as a result, both quality and hygiene levels are insufficient. On the other hand, market demand for high quality fresh produce is increasing. Upper-class consumers, international offices and the booming tourism industry are demanding safe and high-quality fruits and vegetables. Applicant Metro Cash & Carry International B.V., a large wholesaler, is the mother company of local partner Makro Cash & Carry Egypt LLC. Since both partners belong to the same group, no joint venture will be established. Makro Egypt will open 10 wholesale stores in the upcoming years, with its first Cairo branch to be opened in 2009. In order to respond to market demands, the group will establish a pilot infrastructure and train farmers and operators to supply high quality fresh fruits and vegetables to their Egyptian cash & carry stores. The project consists of training and contracting a large number of small farmers that will deliver their products to one of the 2 collection centres that will be set up under the project. From these platforms, products will be transported to a distribution centre in Cairo where products will be handled, stored and distributed to Makro stores around the country. The project will raise the knowledge level and income position of a large group of farmers. Furthermore, the innovative project will have significant impact on the development of the fruits and vegetables supply chain for the local market, which makes a contribution to food safety.Corporate Social Responsibility (CSR)Within the project, Makro's own 'Cali' quality system will be implemented to guarantee quality throughout the supply chain. The Distribution Facility will be HACCP certified. All supplying farmers will be certified according to the MakroGAP standard (a local standard derived from GlobalGAP, but less demanding). A number of 10 farmers will be selected for GlobalGAP certification. These farmers will be the frontrunners of quality improvement and serve as an example for other suppliers.Impact•	Employment and working conditionsThe project will have created 49 direct jobs at the end of the project's implementation. This number will grow to 98 in the second year after completion. Of the 49, a total of 5 jobs will be at the higher level.•	Innovation/Transfer of knowledgeKnowledge of the advanced supply chain that Makro is setting up (with the involvement of a large number of small farmers) is new for Egypt. The extensive training programme will result in a higher knowledge level of 800 local farmers on quality management, growing techniques and production planning.•	Chain effectsChain effects are significant, as the number of small growers with supply contracts will be 250 at the end of the project. These farmers receive technical inputs, knowledge and a more stable and higher income. Furthermore, 800 farmers will be included in the Makro training and capacity building programme. This provides these farmers with knowledge of growing techniques, fertilisation and quality management, which improves their market performance. Another chain effect of the project is its positive impact on the quality and safety of food in several business sectors, especially in tourism. Currently, Egypt suffers from a reputation of bad food quality resulting in stomach problems among tourists and locals.•	EnvironmentIn the Distribution Centre and at the collection platforms a waste water management system will be implemented. Pesticide usage will be minimised and an integrated pest management system will be set-up. A system of reusable crates with deposits will be implemented.•	Position of womenApproximately 60% of all direct employees will be women. At the medium and higher level (including management positions), women and men will be equally represented. The goal of this project is to develop a fruits and vegetables sourcing chain for Metro Cash & Carry Stores in Egypt, consisting of 2 collection platforms and a distribution centre, processing 850 tons of produce, cultivated by small farmers, in the second year of the project.