Monday, August 1, 2011

Wal-Mart is Going Local

Sustainability is a hard sell in almost any circumstance. Working with a marketing firm, I approach sustainable business opportunities as a means to save money, but also to meet consumer demand. Small businesses are constantly trying to stay ahead of the game and it used to be that you could only get sustainable products from small businesses. Take organic food for example. Before Wal-Mart and Costco offered organic options, consumers had very little access to organic foods. Increased access to organic food has done several good things: 1) reduced pesticides and preservatives in foods; 2) increased producer accountability for food processing and safety; 3) lowered the price of organic foods as larger producers found it to be profitable to make the necessary production adjustments. But, because the market has had its hand in organic produce, market forces have decreased the quality of organic foods and made it more and more difficult for small businesses to compete. Think Local campaigns around the country are having increased success as consumers demand fresh, healthy food from local farmers. Now that Wal-Mart seems to offer the same thing as farmers markets, what will happen to the these small think local ventures that are allowing small businesses and farmers to make living wages? Wal-Mart is leading the world in environmental standards and has vastly increased access to organic food. They have also led the way in reducing packaging and though it is listed as their environmental initiatives, it’s all about the bottom line. The bigger things get, the lower the quality. If things get too big, they are not sustainable. Does Wal-Mart plan to invest in local farmers? Traditional price reduction of Wal-Mart products leads to a few big guys making money and a lot of little guys trying to make ends meet. I am glad that Wal-Mart is supporting local farms and offering healthier produce to people who would otherwise not be exposed to apples that were picked less than 1 year prior to their sale, but at what cost?

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