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Is Wal-Mart Big Green or Big Mean?

By Liza Featherstone, The Nation. Posted September 1, 2006.


Wal-Mart wants to bring organic food to the masses, but the retail giant's aggressive ways could end up doing more harm than good.

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A laughing baby is covered in baby food. He's making a gushy mess, as babies do, but having a grand time. A magic word reassures us -- before we've had a chance to worry -- that the food itself is wholesome. That word, of course, is "organic." More surprising, to many viewers of this advertisement, will be the origin of this virtuous feast: Wal-Mart.

This summer, the mega-retailer launched a multimillion-dollar ad campaign with an irresistible promise: "Introducing Organics at the Wal-Mart price." The commercial, which cannily plays to mothers' worries about how pesticides and additives may affect their children's health, has run on network and cable TV; a print version will appear in Parenting, Real Simple, Self and Cooking Light. Already one of the nation's leading organics vendors, Wal-Mart announced this past spring its intention to enter the market far more aggressively, to double its inventory and eventually offer organics at only 10 percent above the price of conventional food.

Food bearing the government's organic label can be, for low- and middle-income shoppers, prohibitively expensive. That's why, to many observers, an "organic Wal-Mart" represents the democratization of healthier -- and better-tasting -- food. Bob Scowcroft of the Organic Farming Research Foundation argues, too, that environmentalists should cheer Wal-Mart's move, which will "turn hundreds of thousands of acres" now being farmed conventionally to organic. "Think of the tonnage of toxins and carcinogens which will disappear from the earth," he says.

Scowcroft also points to research by the Swiss government showing that organic farming can reduce global warming -- actually drawing nitrogen and carbon from the atmosphere. Like the retailer's push for fuel-efficient trucking, Wal-Mart's entry into the organic sector could turn out to be another example of how one decision by this company -- however market-driven -- might do tremendous good, simply because of its scale.

But while there are potential upsides to Wal-Mart's move, it also offers plenty of reasons to worry. To advocates of local economies, like Judy Wicks, founder of Philadelphia's White Dog Cafe and co-chair of the Sustainable Business Network of Greater Philadelphia, an organic Wal-Mart could do "more harm than good" because of the changes it will bring about in the organic food industry. For example, she cites Wal-Mart's likely impact on many small farmers. In other industries Wal-Mart's aggressive competition has proved devastating to small producers, from TV manufacturers to conventional pork farmers.

Though Wal-Mart, like Whole Foods, has agreed to source some products locally, most family-scale organic farmers will not supply big-box retailers directly. But many farmers will nonetheless struggle to meet Wal-Mart's price, in order to supply competing retailers or simply hang on to customers. "Every farmer has to compete because Wal-Mart is in every market," explains Mark Kastel, senior farm policy analyst at the Cornucopia Institute, a progressive research group that advocates for small farmers. "From an economic justice standpoint," he adds, Wal-Mart's plan to go more aggressively organic is "a disaster" because it could prove ruinous for so many family farms.

Some of the concern over small farmers may be sentimental, a remnant of our national identity as a land of Jeffersonian citizen-yeomen. And some detect, in the progressive reaction to Wal-Mart's organic ambitions, a whiff of countercultural cliqueishness. Gary Hirshberg, president of Stonyfield Farm, which supplies organic yogurt to Wal-Mart, is a former hippie who lived on an organic solar- and wind-powered farm in the 1960s and '70s. He dismisses Wal-Mart critics in the organic movement as "activists who don't want to think of organic as a segment. They think of it as a lifestyle." To Hirshberg, organic Wal-Mart is a sign of the movement's success, and those who don't like it are elitist purists, dedicated to their own marginality.

But there are unsentimental reasons to root for small farmers in this drama. They are important to a progressive vision, partly because they are more likely to be farming organic out of principle than a large corporation is and thus more inclined not to cut corners and compromise standards. People who live on their farms with their families also have a compelling incentive to treat the land better.

Regina Beidler is a Mennonite who lives with her dairy-farmer husband, Brent, and 8-year-old daughter, Erin, on 145 acres with forty cows in Randolph Center, Vermont. Because the Beidlers farm organically -- which as defined by the Department of Agriculture means no pesticides, petroleum-based fertilizers or sewage-sludge-based fertilizers -- Erin roams the farm freely (her job is to push the button on the grain elevator). "It's reassuring to know she isn't being exposed to those [toxic] substances," says her mother. "It's much more child-friendly."

Perhaps even more convincingly, as groups like the Organic Consumers Association point out, transporting food long distances is a staggering waste of energy and contributes to global warming. According to research by Brian Halweil of the Worldwatch Institute, our food typically travels 1,500 to 2,500 miles to reach our plate, 25 percent farther than in 1980. By the time we sit down to eat it, a meal from a conventional grocery store has used four to seventeen times more petroleum than a meal made from local ingredients.


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Liza Featherstone is a New York City-based journalist. She is the author, most recently, of "Selling Women Short: The Landmark Battle for Workers' Rights At Wal-Mart" (Basic).

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Posted by: rsaxto on Sep 1, 2006 2:53 AM   
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To end global warming or not to end global warming, that is the question. Near to consumers production is key to what needs to be done in agriculture and other sectors. If WalMart cannot buy and sell near to consumers then it will continue to be part of the problem instead of part of the solution. It remains to be seen whether we can make a big enough reduction in global warming to be able to survive in decency. Stay tuned.

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Be thankful.
Posted by: Lincoln fan on Sep 1, 2006 4:35 AM   
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In New Jersey, Farmers' Markets flourish along the highways to the seashore. Because it's a high traffic area the prices are comparable to our local supermarket even though the farmer doesn't pay shipping. This may be because the location makes the land taxes high. The big draw is freshness. Any vegetable that isn't eaten as close as possible to the time it's picked loses flavor. That is the reason that I grew vegetables in the city. So local farms have a time advantage.

To fault Wal-Mart for overproduction problems that may arise seems to me to be unfair. There is always a possibility of over-production by small farmers. If the price is high one year for a crop, the next year farmers will plant more of that crop and the price will fall. A canny farmer takes this into consideration.

Be thankful that healthful food will become available to more people. Life is a series of trade-offs.
Bob Reichenbach
Director, The Lincoln Initiative.

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the true cost of organic....
Posted by: Farmertim on Sep 1, 2006 5:18 AM   
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was hidden in this piece.
When you order wholesale from a organic supplier you get the suggested retail price.
What you see in the Organic store or Co/op is suggested and then some.
As a former partner in a small on farm organic store that carried a large selection of organic items we sold at 10% to 15% over cost, not over suggested retail.
That brought in produce and most ofther items within 12 to 18% of conventional.
A very easy transition for the consumer to make.
Yep Wal-mart is bringing it in cheaper, but all they have to do is sell it at 10% over cost verses the 35 to 60% over cost you now see in stores at suggested retail.
I'm no fan of Wal-mart, but I am no fan of stores getting greedy when I see the additional markup on the organic goods.
The big concern is overseas organics that may not be organic that Wal-mart will focus on to drive down the price.
But true foodies are already looking to the source of their food which cuts out most retailers anyway.
Just another side note...farmers and producers of organic when selling to processors only receive 15 to 21% of the store shelf price, no different than the conventional producer in the traditonal market.
Yes organic brings more income but only a small piece of the pie.
FarmerTim

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let there be labels
Posted by: antiapathy on Sep 1, 2006 6:33 AM   
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My supermarket has recently been flooded with a new generic label organic milk. I wondered how they could be so much cheaper than the O.V. milk until I read about how Horizon treats its dairy cows. I would imagine that this generic milk comes from animals in similar a similar condition. We need to establish a new labeling standard to let consumers know that their products come from a healthy environment rather than a factory farm. It would have to be completely independent though, as the government is loathe to inform consumers that their mcnuggets come from the filthiest conditions imaginable. And the certification process would have to be affordable. I think it should be based on a sliding scale tied to the size of the farm.
And furthermore, stores should label their products with how far they've traveled.

I just don't understand why the organic industry can't get its act together and create a set of meaningful, voluntary labels. I think consumers want to know these things, and organic family farms are only hurting themselves by not lobbying to get that information to the public.

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Buy local or grow your own. Living foods don't transport well.
Posted by: jreinhart1 on Sep 1, 2006 7:49 AM   
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Living foods such as carrots, mellons, corn, beans ... don't transport well and the vitamin content goes down over time. I fully support urban farms but with urban sprawl, they have become too far away in many cities. A rule I use is that if I can't bicycle to it, it is too far away. Local farmers markets were close and I could go out and pick my own vegatables and fruits but they have dissappeared due to the rapid development in the Phoenix metro area.

My parents were the WW II generation and all of my life at home in the midwest, we had a "victory garden". We had fresh vegetables for the summer and fall and 8 fruit trees in the back yard (alas, most of the art of preparation, cooking, canning and storage seem to have been lost at the end of my grandparents generation and the knowledge hasn't been past on because of convenience foods). I have continued this practice and although it may be expensive, I know the food is really organic (many foods labeled organic isn't because of industry watering down the standards). Heirloom vegatables that don't transport at all are available and they are in a class by themselves. The fruits, vegatables, dairy, eggs and chicken that I can't produce came from the farmers market that used to be in surrounding farm areas but they are now gone. Living in the southwest, "development" has eliminated most farms.

Urban farms are an outstanding option, but once again, the travel time to the farms is so far out that I'm burning a tank full of gas for the round trip (Phoenix is as bad as LA now). Mesquite bean flour is awesome compared to other flour options but needs a hammer mill that is far away so I have to throw away 100+ lbs of beans a year (the been pods taste like honey).

My greatest hope would be for city planners to get a grasp on sustainabiliy of the local city or town. I support local growers and industries in spite of higher costs because I know that it is in the best interest of the community, regardless of size, in the long term. You know the food is organic when you know work in an urban garden or know the farmer and his fields that participate in farmers markets. The same is not true of large grocery chains since the regulations have watered down requirements so severly that nearly anything can be considered organic and quality fresh fruits and vegetables don't travel over long distances well. I haven't tasted good milk (used to coat the glass), eggs (they don't even stand up anymore), tomatoes (), or potatoes (skin used to fall right off and tasted earthy) or real fresh buttermilk (last produced 45 years ago and isn't sour), from a grocery store of any kind.

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Zen
Posted by: Zen on Sep 1, 2006 9:56 AM   
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Wal-Mart has been the devil for years. Any honest effort they make to turn things around should be recognized. Yes, they're going to make a profit. But that's what companies do. If Lee Scott pulls off his green vision for Wal-Mart, it will position Wal-Mart to be the world leader in the corporate green revolution. I say hurah! There will certainly be bumps in the road, and the devil won't be exorcised overnight. But what I am reading lately is encouraging. They at least deserve a chance. Who knows... In 30 years we may all be proud to have the new green Wal-Mart in our communities. Never say never.

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Wal Mart will take over the US, it has support from both sides of the isle.
Posted by: MTreich on Sep 1, 2006 12:09 PM   
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Wal Mart is bigger than us all. This family business killer has not only strong Republican support but also some support on the Democrat side. Hillary Clinton used to serve on Wal Mart's board of directors as a paid member.

I don't know what we can do except protest and educate communities where Wal Mart is thinking of going. Currently they are planning a super sized wal mart in the small town of Sanger, CA. It will be potentially devastating for the already struggling small town. I recommend people research this for themselves.

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87% of U.S. households shop at Wal-Mart
Posted by: rk_tech68fl on Sep 1, 2006 3:24 PM   
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..so this is basically a marketing ploy to lure the remaining 13%(probably the demographic that reads). The average Wal-mart generates 10,000 car trips per day and their massive parking lots produce enough polluted stormwater runoff to be cited by the EPA in 9 different states. They use $1.1 billion/yr. in electricity cooling their stores. Yet somehow, they think organic milk is going to make me shop there..?

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Is Wal-Mart Big Green or Big Mean?
Posted by: fork on Sep 1, 2006 9:19 PM   
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Big Mean.
Next question.

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