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Greg Martin 07/08/05 Wal-Mart and the produce industry, finale
by Greg Martin, click here for bio

Program: Line on Agriculture
Date: July 08, 05

Some arguments that have been raised about box store type grocery chains, like Wal-Mart Super Centers, is that their main concerns center on the lowest prices for consumers and their bottom line, as opposed to the benefit of the producers and sellers of goods. That argument had especially been heard over the last decade in the produce industry, as Wal-Mart has shot like a meteor to become the worlds largest retailer. But Wal-Marts Senior Vice President for Perishables, Bruce Petersen, says that yes, while low prices for the consumers is a driving force, if his company makes deals that do not profit the growers and sellers and does not allow them to reinvest, all that does is drive suppliers out of business & not beneficial for anyone involved. Petersen says that belief and practice of a mutually beneficial relationship is one of the ways Wal-Mart demonstrates it has a sincere interest and stake in the success of American agriculture. He noted at a visit last winter in Yakima that Wal-Mart is the largest seller of many of Washington States top commodities, such as tree fruit, potatoes, onions, and asparagus. And that is especially true about Wal-Mart stores located overseas, which serves indirectly as an exporter of U.S. produce and goods in places like China, where traditionally they have been hard markets to crack open. But the involvement is not just on the sales side. Petersen says his company is also involved in working on policy issues important to agriculture.

PETERSEN: Were one of the original members of the U.S.D.A. Produce Advisory Council. Secretary of Ag Ann Veneman at the time asked me to serve with a group of industry leaders that were important, so that the U.S.D.A. would have a sense of what was going out into the industry.

Wal-Mart also participates with state Departments of Agriculture on a number of policy issues. And Petersen notes one example of how his company is involved in ag on a local level, stems from last years devastating hurricanes along the Southeastern United States.

PETERSEN: The South Carolina peach industry probably would not be in business today if it wasnt for Wal-Mart. Very, very difficult year for those folks. And were able to support them working through their state Department of Agriculture, to be sure we move the crop that theyll be able to get a return to those growers to allow them to stay in business. And its working through the state Departments of Agriculture that we understand very, very localized growing that are going on throughout the country, and were there to support them.

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