Tuesday, July 01, 2008

Wal-Mart says it is top buyer of in-state produce

Wal-Mart Stores Inc., known for its hard bargaining with national suppliers, said today that it is the largest buyer of locally grown fruits and vegetables, which it defines as anything grown in the state where the selling store is located. The world's largest retailer "said it will purchase and sell $400 million worth of produce grown by local farmers within its state stores this year, an effort the company says will only grow," The Associated Press reports. "Academic studies show buying local cuts down on transportation mileage, while also assuring customers of a product's providence amid mass recalls."

Since Wal-Mart "leverages bulk purchases to keep prices down, buying from local farms might not appear to fit the company's strategy," Jon Gambrell writes. But it "has focused on buying fruits and vegetables from farms nearest to their distribution centers, making shipping easier while cutting down on trucking in produce from outside of the area, said spokeswoman Deisha Galberth."

Rich Pirog, associate director of the Leopold Center for Sustainable Agriculture at Iowa State University, said Wal-Mart "could be buying from single large farms in states, locking out other, smaller operations," Gambrell reports. "Wal-Mart did not name its supplier[s] and Galberth declined to say what percentage locally grown produce represented among all the produce purchased by the company." (Read more)

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