Wednesday, July 09, 2008

Wal-mart branches out to use locally grown produce

Wal-mart has been named the nation’s largest buyer of locally grown fruits & vegetables. Wal-mart plans to buy $400 million in produce grown in its states this year. By only buying local produce the company estimates it will save $1.4 million in annual savings, 100,000 gallons of diesel, and 672,000 food miles.

An obvious notice in the change in Wal-mart’s consumption of local produce is that it only used to buy a few peaches from a few producers, now Wal-mart buys 12 million peaches annually from 18 different producers. This move by Wal-mart could easily change the market for farmers. Restaurants have been willing to spend more money for fruits and vegetables they know have come from local farmers, something that Rich Priog says could change when Wal-mart moves into the territory and negotiates. Also, identifying locally grown food in stores aisles could relieve customer concerns, especially after recent salmonella outbreak linked to tomatoes that sickened at least 869 people across the country.

2 comments:

Jessica Hutchison said...

It makes sense that Wal-Mart would want to buy their produce from local farmers because it is a more garuantee that the quality is higher. I agree that this will help farmers who have not been seeing good business for a few years now. When there is an opportunity to buy locally grown produce or at a grocery store, I would rather get my produce from a local source.

amy.soul said...

I usually avoid Wal-Mart because of what it has done to small Mom and Pop stores in many small towns and its association with 'urban sprawl'. However, as gas and energy prices have skyrocketed, I have been going to Wal-Mart more that I normally would. They do have lower prices. But I do applaud there efforts in supporting locally grown produce, even if it is in attempt to save themselves money. This relates to the "Branding Beef" assignment about Oregon cattle farmers trying to make a distinction between their beef and other beef. Wal-Mart is trying to associate a distinction in their produce department in comparison to other large grocery chains. They want their produce to be considered specialized because it will be locally-grown and supporting local farmers. I hope they are successful in their continued efforts to be the largest buyer of locally grown produce.