By Jaime M. Pullman
Madison Magazine
Special To Channel 3000

Wal-Mart is in the middle of a ten-month marketing campaign to push its organic products. With seventy-seven stores in Wisconsin and two "super centers" on their way in Madison suburbs, the company is chasing after traditional and upscale consumers alike. If they win them over, Dane County farmers and producers that make a living organically might be in for more than they bargained for.

The number-one seller of groceries in the U.S., Wal-Mart is one of the most prominent big boxes to move into organics, promising to double its inventory and one day price it at just ten percent more than its non-organic offerings. While organic food's footprint on the overall market -- just around two percent -- might seem negligible, it's the fastest growing segment of that market. Estimated at $15 billion a year, everyone from industry experts to coupon-clipping families is watching to see where it all leads.

While Wal-Mart's foray into organics has been helpful in raising awareness and making organic products available to a broader range of consumers, its entrance into the industry has become a point of concern for many who believe the corporation and others like it might drive small farms out of business.

"As major food companies enter the organic marketing place, smaller scale producers and organic food companies may be disadvantaged and face consolidation efforts like buy-outs and mergers," says John Hendrickson, a senior outreach specialist at University of Wisconsin--Madison's Center for Integrated Agricultural Systems. The consumer may perceive a short-term benefit -- lower price -- but this leads to monopoly and lack of choice in the marketplace…"

While Wal-Mart is one of the most prominent retailers to move into organics, it certainly isn't alone. Others have launched or expanded their organic selections to meet consumer demand. A long-time organic milk distributor, Dean Foods is the largest milk seller in the country and has already taken advantage of organics' popularity. The $10 billion Texas-based company produces Silk, the top-selling soymilk. And with organic milk consumption growing thirty percent annually nationwide, the business stands to profit significantly. At the other end of the food chain sit organic farmers selling -- both directly and indirectly -- to the Wal-Marts of the world. If these producers receive lower prices for their products, as people like Hendrickson predict and history would suggest, their futures are uncertain, according to Jody Padgham, education director of the Midwest Organic and Sustainable Education Service, or Moses. "Wal-Mart has a history of negotiating for low prices and when someone signs onto a big contract it may seem like a good thing, but if you don't have a good handle on your production costs, things can end up very hard."

Until now, consumers have been willing to pay fifty percent or more for organic products, according to a study by the Organic Consumers Association (OCA), a non-profit public interest group that promotes sustainable agriculture and natural foods. But higher costs have often made them impractical choices for families on a budget. Wal-Mart has changed that.

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