News came out today that Wal-Mart, the uber-megastore-to-end-all-megastores, has released a plan to address its global sustainability goals. Everyone knows that Wal-Mart makes or breaks the market of consumed goods. As the world’s largest public corporation it owns 8500 stores in 15 countries with 55 different names. Wal-Mart employs more than 2.1 million people worldwide and 1.4 million here in the Unites States. Last year alone, Wal-Mart brought in over $400 billon. No matter your stance on this ever-present retailer, there is no doubt that they control the ebb and flow of many consumer goods.
As of today, they intend to spearhead the local food movement and sustainability on a global scale.
Even though Wal-Mart can never emulate the farmer’s market experience (in time I’m sure they will try,) their investment in local food production will immensely affect the production and distribution of local food. The plan released today has three major components, including:
- Support farmers and their communities
- Produce more food with fewer resources and less waste
- Sustainable source key agriculture products
I will be the first to say, don’t let the encouraging headline suggest a perfect reality because many people, myself included, distrust Wal-Mart. They are a blessing and a curse. For now, let me mention how they may be seen as a blessing for the food movement.
- In “emerging markets” (outside the U.S.) by 2015, Wal-Mart will sell $1 billion in food sourced from 1 million small and medium farmers (these are defined as farms that are smaller than 50 acres.)
- In the U.S. Wal-Mart will double its sale of locally sourced produce
- Wal-Mart will include an agriculture element to its Sustainability Index. The index will ask suppliers about the water, energy, fertilizer and pesticide they use per unit of food produced.
- For the stores in Brazil, they will only source beef that comes from ranches that do not contribute to deforestation in the Amazon
Each of these “blessings” will impact the industrial food systems in a positive way. The boost in locally sourced produce will incentivize American farmers to grow fruits and vegetables, not just commodity crops (soy, corn, cotton, wheat.) Not only will Wal-Mart seek local producers, but they also want to limit the environmental impact of distribution. Therefore, there will be more of an effort to distribute the food in more sustainable ways. This does not translate to electric trucks, rather finding farms that are closer to a given store.
The Sustainability Index is also of major significance. It’s one thing for consumers to want organic produce, but when the world’s largest store wants to source local food who meet a certain standard of sustainability, the ‘trickle down’ idea takes real form. Sadly, Wal-Mart speaks louder than many of us; and in this case, maybe it’s for the better?
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Okay, so now let me divulge some of the curses that Wal-Mart manifests. Primarily, the physical size of a Wal-Mart store – its sprawling parking lot and thousands of gas-guzzling 18-wheeled trucks do that pare well for the environment. Consider where these stores develop, suburbs and urban sprawl. A store this big and invasive in a given community, not only brings in thousands of people from outside the community (increasing traffic, noise, pollution), but the construction of these spaces incentivize developers to build new communities around or nearby the store. The long-term impacts of sprawl are related to places like Wal-Mart, retailers that thrive on open space and lots of cars and trucks driving near and far to shop.
Another massive problem with Wal-Marts as well as other mega-retail chains, is their impact on local, independent, “mom and pop” stores. There is no competition with Wal-Mart. The prices are too low, the selection too great and the centralization of so many products makes it hard for people to run multiple errands when they could just shop at Wal-Mart. In other words, Wal-Mart destroys community. It digs up and paves over the land and removes local businesses.
Lastly, and maybe most importantly, Wal-Mart is very anti-union. They are notorious for how they treat workers – paltry pay, poor benefits, did I mention that they are staunchly anti-union? Many employees rely on food stamps, Medicare and subsidized housing to make ends meet. (Check out this study for more.) Between the poor treatment of workers, the physical environment and independent businesses, it can be difficult to promote Wal-Mart.
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Today’s news pushes Wal-Mart in a great direction; at the same time, the bane of their existence is a problem unto itself. I don’t shop at Wal-Mart and I never will, but for those that must, now they will also have a source of fresh, local food to enjoy.
Hopefully they will purchase it.
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I’m fascinated by Walmart’s Sustainability Index, though let’s not pretend that it’s going to help consumers or producers. It’s about understanding long term costs in the supply chain. While I’m recklessly optimistic about the undertaking for completely different reasons, I’m not optimistic about it’s affect on local food sources. Walmart can already single-handedly change the price of commodities and foods.
(My uncle grows apples, and a few years back his Golden Delicious were too small, so they wouldn’t buy them. Then, after going to other growers, they came back when they realized that everyone’s crops were small, my uncle got much more than he was originally offered. He went from an expected return to no return then a boon. That’s chaos!)
The concern I have is what concessions smaller farms will have to make to play the game with Walmart. Walmart controls the price, and one bad year for a farm (bad as in return based on the price Walmart offers) could wipe it out. Just another mortal danger for farms.
One goal of the sustainable index is to understand all parts of “cost,” possibly giving Walmart the ability to make decisions based on more than just the immediate market price, but by 2015, the world will not have changed enough that the rest of the market will allow that. And by “rest of the market,” I mean Walmart shoppers.