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Carrefour SA, Europe's largest retailer, has begun buying agricultural produce directly from farmers in China to cut costs.

Paris-based Carrefour opened its first China direct procurement center in Shanghai last week and plans to set up more such centers in Beijing, Guangzhou and other cities, the company said in an e-mailed statement.

Direct procurement enables Carrefour to bypass wholesalers, reducing costs and giving farmers a secure outlet for their produce, the retailer said.

Carrefour's direct procurement comes amid growing concern both in China and abroad over the safety of Chinese food products.

Carrefour sent inspectors to closely examine water quality at Shanghai Shatian Lake Ecological Breeding Base before signing a one-year agreement last week on the supply of prawns - its first direct procurement contract in the country, the company said. Carrefour said it would monitor the entire breeding procedure and would inspect water and feed, to ensure the quality of the prawns.

Carrefour opened its 100th Chinese superstore earlier this month and plans to open 20 to 25 stores a year in the world's fastest-growing major consumer market.

Carrefour, the world's second-biggest retailer, competes for market share with bigger rival Wal-Mart Stores Inc, which this month is offering more than 1,000 discounted products at its 80 stores in China.