Richard DeWilde has a long history with organic farming. His grandfather, Nick Hoogshagen, adopted the organic approach five decades ago on his farm in South Dakota, well before it became popular with consumers and fueled the popularity of retailers like Whole Foods Market (WFMI ).As you can see not everyone is a consumer advocate.
Now, DeWilde, 57, is a working farmer himself, carrying on the family tradition of avoiding pesticides and other chemicals that can contaminate food in favor of a more natural approach. He's co-owner of Harmony Valley Farm, which grows Swiss chard, parsnips, turnips, and kale on 100 acres in the southwestern corner of Wisconsin.
So you might think that DeWilde would be overjoyed at the news that Wal-Mart (WMT) has finally come around to his grandfather's philosophy. The juggernaut retailer said recently that it plans to double its offerings of organic products, including produce, dairy, and dry goods.
But DeWilde isn't thrilled. Instead, he's dismayed at the prospect of Wal-Mart becoming a player in the organic market. He fears that the company will use its market strength to drive down prices and hurt U.S. farmers. "Wal-Mart has the reputation of beating up on its suppliers," says DeWilde. "I certainly don't see 'selling at a lower price' as an opportunity."
Wednesday, March 29, 2006
Wal-Mart's Organic Offensive
Business Week reports: