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Wal Mart Hurting Organics?

Mike

Well-known member
Wal-Mart threatens farmers, report says
Retailer's growth in organics a worry in state
By TOM DAYKIN
[email protected]
Posted: Sept. 27, 2006
Plans by Wal-Mart Stores Inc. to increase its offerings of organic foods could create a competitive threat to smaller organic farms and food producers, according to a briefing paper released Wednesday by a Wisconsin-based group.


Wal-Mart already is buying milk and other organic products from large-scale dairies and other large, conventional food producers that have little experience with organic production, creating what the Cornucopia Institute calls "corporate organics." The non-profit group is an advocate for what it calls "family-scale farms."

"This competitive challenge has the potential to destroy healthy markets for other retailers, distributors, manufacturers/processors, and family-scale domestic farmers," the paper says.

Wal-Mart, which is Wisconsin's largest private employer, is the world's largest retailer, with annual sales of $312 billion. Its continued development of Supercenters - combined discount stores and supermarkets - has made it the nation's largest supermarket chain. Wal-Mart operates dozens of supercenters throughout Wisconsin, and last week disclosed plans for its first Milwaukee Supercenter.

Wisconsin has a large presence in organic farming, including the Cooperative Regions of Organic Producer Pools, headquartered in La Farge. The co-op, which sells milk, cheese, meat and other products under the Organic Valley brand, represents more than 800 farmers in 24 states, and in 2005 posted sales of $245 million.

The Cornucopia Institute, in its briefing paper, says Wal-Mart is already the nation's largest retailer of organic milk through its relationship with Dean Foods Co., which owns Horizon organic milk. The paper says Wal-Mart's business strategy of buying large amounts of products at low prices from conventional food producers like Dean will shut out small- and medium-sized organic food producers "who cannot compete on price with these industrial behemoths."

The group also questions whether large-scale conventional food producers such as Dean truly reflect what the paper calls the "organic movement." It said Dean and another Wal-Mart organic milk supplier, Aurora Organic Dairy, have confined their cattle in feedlots with little access to pasture, as required by federal organic standards.

Wal-Mart responds
In a statement, Wal-Mart spokeswoman Karen Burk said the company believes organic standards must not be compromised.

But the statement did not address the specific allegations made against Dean and Aurora, which are being investigated by the U.S. Department of Agriculture.

"We believe that both organic and conventional agriculture provide safe, healthy and sustainable products for customers," Wal-Mart's statement says. "It is up to our customers to choose which type of product they want to buy, and we want to give them the choice."

That freedom to choose will determine whether Wal-Mart's organic strategy will succeed, said Mark Kastel, Cornucopia Institute co-founder.

That's why the group is publicizing what it considers Wal-Mart's practice of "cutting corners" when it buys organic products from companies like Dean and Aurora, Kastel said.

Armed with that information, Kastel said, consumers can better "partner with companies that share their values."

From the Sept. 28, 2006 editions of the Milwaukee Journal Sentinel
Have an opinion on this story? Write a letter to the editor or start an online forum.
 

Econ101

Well-known member
Reader, I would agree with you on most things with whole foods. The organic label doesn't deserve that much price difference, but until there is a better distribution system and organic cert. programs thats what you get.

There isn't that much cost difference between organic production of beef and non organic. It will take a little competition to bring the cost differences down at the retail. The problem is places like Walmart don't know fair competition, they know how to use market power to the advantage of their investors and their upper management.
 

pknoeber

Well-known member
Econ101 said:
There isn't that much cost difference between organic production of beef and non organic. It will take a little competition to bring the cost differences down at the retail. The problem is places like Walmart don't know fair competition, they know how to use market power to the advantage of their investors and their upper management.

Organic beef is significantly more expensive to produce. Remember, these cattle have to be raised on certified organic ground, not something that is just considered "natural." Then they get to be fed certified organic feeds to finish, or if they're grass-fed, they'll graze for a substantially longer period of time with an increased pasture cost.

I have an uncle that raised organic beef for a while. He quit b/c he made more money selling organic feedstuffs than raising the beef (he's an organic farmer also). Yep, people would pay premiums for the organic label on the high quality cuts, but the hamburger just killed the producers b/c nobody pays any premium for it.

Phil
 

Econ101

Well-known member
Well, I had some hamburger, some round steak and some other more tender grass fed steak this last week and it all, including the hamburger beats the other stuff. It had a real beef taste to it that was really good. All from my grass farmer friend in Iola, Texas, Gene Sollock.
 

Texan

Well-known member
reader (the Second) said:
Safeway has replaced the organic brands I buy with its own organic brands. Life is unfair because the big guys have both production and distribution and once the little guys create a new market, they can take it over.

However I have shopped at the new, huge and wonderful Whole Foods Market recently and it is SO expensive that I have trouble justifying it, even though their air packed chicken that I served last week at my dinner party was wonderful, ditto their brisket. I will probably only buy meats and a few unusual things there. Their lemons are ONE DOLLAR each. They sell the same non-organic produce as Safeway for double the price. Avocados are another example - 10 for a dollar at Safeway and probably a dollar each at WFM.

But the wild Alaskan salmon at WFM is incomparable. I had Safeway Coho salmon last night - dry and tasteless.
Whole Foods sources almost all of it's beef from New Zealand. They are also responsible for developing the Animal Compassion Foundation. Their specifications for raising cattle dictate that we don't brand or dehorn, don't castrate after 8 weeks, etc. Here's a copy of their program:

http://www.wholefoodsmarket.com/issues/animalwelfare/cattle.pdf

It's pretty clear to me that anyone who supports Whole Foods also supports their wacko agenda.
 

Econ101

Well-known member
New Zealand is on the forefront of grass fed and rotational grazing of sheep and cattle when it comes to international markets. If we could only emulate some of their good habits and make the extra income from the value added like robert mac does instead of giving it away to "efficient packers".

Texan, Gene Sollock is a distinguished Texan who is also a much sought after expert on grass farming.

Why is it that New Zealand has to fill Whole Food's orders and not Texans?

Whole Foods makes the sales for that type of value and should not be dismissed as a potential market.
 

Econ101

Well-known member
reader (the Second) said:
Econ101 said:
New Zealand is on the forefront of grass fed and rotational grazing of sheep and cattle when it comes to international markets. If we could only emulate some of their good habits and make the extra income from the value added like robert mac does instead of giving it away to "efficient packers".

Texan, Gene Sollock is a distinguished Texan who is also a much sought after expert on grass farming.

Why is it that New Zealand has to fill Whole Food's orders and not Texans?

Whole Foods makes the sales for that type of value and should not be dismissed as a potential market.

California sells Niman Ranch organic brand all over the place, including at the Oakland airport... They have a new organic brand since last time I was there. I don't believe that Coleman is NZ, am I incorrect?

Good point, R2. Mine was a rhetorical response to the question posed by Texan.

Niman Ranch started its business nearly thirty years ago in Marin County, just across the Golden Gate Bridge from San Francisco. We still raise cattle on the original ranch, but have expanded to sell pork and lamb, too. We work with over 500 independent family farmers who raise livestock for us, according to our strict protocols.

It is being done.

Whole Foods has been a market innovator in showing that people will pay good money for higher priced, quality products produced ethically. Too bad there are not more domestic sources for such.
 

Texan

Well-known member
Econ101 said:
Good point, R2. Mine was a rhetorical response to the question posed by Texan.
Texan didn't pose any question. I made statements that I thought were pretty clear:

1. Whole Foods sources almost all of it's beef from New Zealand.

2. They are also responsible for developing the Animal Compassion Foundation.

3. It's pretty clear to me that anyone who supports Whole Foods also supports their wacko agenda.

Econ101 said:
Whole Foods has been a market innovator in showing that people will pay good money for higher priced, quality products produced ethically. Too bad there are not more domestic sources for such.
"Too bad there are not more domestic sources" for what? For "quality products produced ethically"? Are you serious? I've already shown you that Whole Foods sources most of their beef from New Zealand. Exactly what is it that you think the New Zealand producer beats us at? Producing quality cattle? Ethical treatment of cattle?

Unbelievable, Econ....you never cease to amaze me - the way you constantly try to tear down the US cattle industry to further your agenda. You're actually saying that New Zealand producers raise higher quality cattle than we do and/or they raise them more "ethically"?

I really can't wait to hear it when some of your own buddies see that statement. I don't think they're gonna like that.
 
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