Will Walmart, not Whole Foods, save the small farm and make America healthy?
By Corby Kummer
First published by The Atlantic, March, 2010
Buy my food at Walmart? No thanks. Until recently, I had been to exactly one Walmart in my life, at the insistence of a friend I was visiting in Natchez, Mississippi, about 10 years ago. It was one of the sights, she said. Up and down the aisles we went, properly impressed by the endless rows and endless abundance. Not the produce section. I saw rows of prepackaged, plastic-trapped fruits and vegetables. I would never think of shopping there.
Not even if I could get environmentally correct food. Walmart’s move into organics was then getting under way, but it just seemed cynical—a way to grab market share while driving small stores and farmers out of business. Then, last year, the market for organic milk started to go down along with the economy, and dairy farmers in Vermont and other states, who had made big investments in organic certification, began losing contracts and selling their farms. A guaranteed large buyer of organic milk began to look more attractive. And friends started telling me I needed to look seriously at Walmart’s efforts to sell sustainably raised food.
Really? Wasn’t this greenwashing? I called Charles Fishman, the author of The Wal-Mart Effect, which entertainingly documents the market-changing (and company-destroying) effects of Walmart’s decisions. He reiterated that whatever Walmart decides to do has large repercussions—and told me that what it had decided to do since my Natchez foray was to compete with high-end supermarkets. “You won’t recognize the grocery section of a supercenter,” he said. He ordered me to get in my car and find one.
He was right. In the grocery section of the Raynham supercenter, 45 minutes south of Boston, I had trouble believing I was in a Walmart. The very reasonable-looking produce, most of it loose and nicely organized, was in black plastic bins (as in British supermarkets, where the look is common; the idea is to make the colors pop). The first thing I saw, McIntosh apples, came from the same local orchard whose apples I’d just seen in the same bags at Whole Foods. The bunched beets were from Muranaka Farm, whose beets I often buy at other markets—but these looked much fresher. The service people I could find (it wasn’t hard) were unfailingly enthusiastic, though I did wonder whether they got let out at night.
During a few days of tasting, the results were mixed. Those beets handily beat (sorry) ones I’d just bought at Whole Foods, and compared nicely with beets I’d recently bought at the farmers’ market. But packaged carrots and celery, both organic, were flavorless. Organic bananas and “tree ripened” California peaches, already out of season, were better than the ones in most supermarkets, and most of the Walmart food was cheaper—though when I went to my usual Whole Foods to compare prices for local produce, they were surprisingly similar (dry goods and dairy products were considerably less expensive at Walmart).
Walmart holding its own against Whole Foods? This called for a blind tasting.
I conspired with my contrarian friend James McWilliams, an agricultural historian at Texas State University at San Marcos and the author of the new Just Food: Where Locavores Get It Wrong and How We Can Truly Eat Responsibly. He enlisted his friends at Fino, a restaurant in Austin that pays special attention to where the food it serves comes from, as co-conspirators. I would buy two complete sets of ingredients, one at Walmart and the other at Whole Foods. The chef would prepare them as simply as possible, and serve two versions of each course, side by side on the same plate, to a group of local food experts invited to judge.
I started looking into how and why Walmart could be plausibly competing with Whole Foods, and found that its produce-buying had evolved beyond organics, to a virtually unknown program—one that could do more to encourage small and medium-size American farms than any number of well-meaning nonprofits, or the U.S. Department of Agriculture, with its new Know Your Farmer, Know Your Food campaign. Not even Fishman, who has been closely tracking Walmart’s sustainability efforts, had heard of it. “They do a lot of good things they don’t talk about,” he offered.
The program, which Walmart calls Heritage Agriculture, will encourage farms within a day’s drive of one of its warehouses to grow crops that now take days to arrive in trucks from states like Florida and California. In many cases the crops once flourished in the places where Walmart is encouraging their revival, but vanished because of Big Agriculture competition.
Ron McCormick, the senior director of local and sustainable sourcing for Walmart, told me that about three years ago he came upon pictures from the 1920s of thriving apple orchards in Rogers, Arkansas, eight miles from the company’s headquarters. Apples were once shipped from northwest Arkansas by railroad to St. Louis and Chicago. After Washington state and California took over the apple market, hardly any orchards remained. Cabbage, greens, and melons were also once staples of the local farming economy. But for decades, Arkansas’s cash crops have been tomatoes and grapes. A new initiative could diversify crops and give consumers fresher produce.
As with most Walmart programs, the clear impetus is to claim a share of consumer spending: first for organics, now for locally grown food. But buying local food is often harder than buying organic. The obstacles for both small farm and big store are many: how much a relatively small farmer can grow and how reliably, given short growing seasons; how to charge a competitive price when the farmer’s expenses are so much higher than those of industrial farms; and how to get produce from farm to warehouse.
Walmart knows all this, and knows that various nonprofit agricultural and university networks are trying to solve the same problems. In considering how to build on existing programs (and investments), Walmart talked with the local branch of the Environmental Defense Fund, which opened near the company’s Arkansas headquarters when Walmart started to look serious about green efforts, and with the Applied Sustainability Center at the University of Arkansas. The center (of which the Walmart Foundation is a chief funder) is part of a national partnership called Agile Agriculture, which includes universities such as Drake and the University of New Hampshire and nonprofits like the American Farmland Trust.* To get more locally grown produce into grocery stores and restaurants, the partnership is centralizing and streamlining distribution for farms with limited growing seasons, limited production, and limited transportation resources.
Walmart says it wants to revive local economies and communities that lost out when agriculture became centralized in large states. (The heirloom varieties beloved by foodies lost out at the same time, but so far they’re not a focus of Walmart’s program.) This would be something like bringing the once-flourishing silk and wool trades back to my hometown of Rockville, Connecticut. It’s not something you expect from Walmart, which is better known for destroying local economies than for rebuilding them.
As everyone who sells to or buys from (or, notoriously, works for) Walmart knows, price is where every consideration begins and ends. Even if the price Walmart pays for local produce is slightly higher than what it would pay large growers, savings in transport and the ability to order smaller quantities at a time can make up the difference. Contracting directly with farmers, which Walmart intends to do in the future as much as possible, can help eliminate middlemen, who sometimes misrepresent prices. Heritage produce currently accounts for only 4 to 6 percent of Walmart’s produce sales, McCormick told me (already more than a chain might spend on produce in a year, as Fishman would point out), adding that he hopes the figure will get closer to 20 percent, so the program will “go from experimental to being really viable.”
Michelle Harvey, who is in charge of working with Walmart on agriculture programs at the local Environmental Defense Fund office, summarized a long conversation with me on the sustainability efforts she thinks the company is serious about: “It’s getting harder and harder to hate Walmart.”
“We support local farmers,” read a sign at an Austin Walmart. I didn’t see any farm names listed in the produce section, but I did find plastic tubs of organic baby spinach and “spring mix” greens with modern labeling that looked like it could be at Whole Foods. My list was simple to the point of stark, for a fair fight. Some ingredients seemed identical to what I’d find at Whole Foods. Organic, free-range brown eggs. Promised Land all-natural, hormone-free milk. A bottle of Watkins Madagascar vanilla for panna cotta. I couldn’t find much in the way of the seasonal fruit the restaurant had told me the chef would serve with dessert. But I did find, to my surprise, a huge bin of pomegranates, so I bought those, and some Bosc pears. The sticking points were fresh goat cheese, which flummoxed the nice sales people (we found some Alouette brand, hidden), and chicken breasts. I could find organic meat, but no breasts without “up to 12 percent natural chicken broth” added—an attempt to inject flavor and add weight. I wasn’t happy with the suppliers, either: Tyson predominated. I bought Pilgrims Pride, but was suspicious. The bill was $126.02.
At the flagship Whole Foods, in downtown Austin, the produce was much more varied, though the spinach and spring mix looked less vibrant. The chicken was properly dry, a fresh ivory color—and more than twice as expensive as Walmart’s. My total bill was $175.04; $20 of the extra $50 was for the meat.
Brian Stubbs, the tall, genial young manager of Fino, and Jason Donoho, the chef, were intrigued as they helped me carry bag after bag into the restaurant’s kitchen. They carefully segregated the bags on two shelves of a walk-in refrigerator. The younger cooks looked surprised by the Whole Foods kraft-paper bags, and slightly horrified by the flimsy white plastic ones from Walmart.
The next night 16 critics, bloggers, and general food lovers gathered around a long, high table at the restaurant. Stubbs passed out scoring sheets with bullets for grades of one (worst) to five (best) for each of the four courses, and lines for comments.
The first course, bowls of almonds and pieces of fried goat cheese with red-onion jam and honey, was a clear win for Walmart. The Walmart almonds were described as “aromatic,” “mellow,” “pure,” and “yummy,” the Whole Foods almonds as “raw,” though also more “natural”; they were in fact fresher, though duller in flavor. (Like the best of the food I saw at the Austin Walmart, the packaging for the almonds had a homegrown Mexican look.) The second course, mixed spring greens in a sherry vinaigrette, was another Walmart win: only a few tasters preferred the Whole Foods greens, calling them fresher and heartier-flavored. And only one noticed the little brown age spots on a few Walmart leaves, but she was a ringer—Carol Ann Sayle, a local farmer famous for her greens.
So far Walmart was ahead. But then came the chicken, served with a poached egg on a bed of spinach and golden raisins. A woman whose taste I already thought uncanny—she works as an aromatherapist—compared the broth-infused meat to something out of a hospital cafeteria: “It’s like they injected it with something to make it taste like fast food.” I thought it was salty, damp, and dismal. The spinach, though, was another story: even the most ardent brothy-breast haters thought the Walmart spinach was fresher.
Dessert was the most puzzling. I had thought that Walmart’s locally sourced milk and exotic-looking vanilla would be the gold standard, but the Whole Foods house brands slaughtered them (“Kicks A’s ass,” one taster wrote). People couldn’t find enough words to diss the Walmart panna cotta (“artificial, thin”) and praise the Whole Foods one (“like a good Christmas”). I wished I’d bought the identical Promised Land milk at Whole Foods, to see if there is in fact a difference in the branded food products that suppliers give Walmart, as there is in the case of other branded products. The pomegranate seeds, sadly, were wan, with barely any flavor, particularly compared with the garnet gems from Whole Foods. But Walmart got points from the chef, and from me, for carrying pomegranates at all.
As I had been in my own kitchen, the tasters were surprised when the results were unblinded at the end of the meal and they learned that in a number of instances they had adamantly preferred Walmart produce. And they weren’t entirely happy.
In an ideal world, people would buy their food directly from the people who grew or caught it, or grow and catch it themselves. But most people can’t do that. If there were a Walmart closer to where I live, I would probably shop there.
Most important, the vast majority of Walmarts carry a large range of affordable fresh fruits and vegetables. And Walmarts serve many “food deserts,” in large cities and rural areas—ironically including farm areas. I’m not sure I’m convinced that the world’s largest retailer is set on rebuilding local economies it had a hand in destroying, if not literally, then in effect. But I’m convinced that if it wants to, a ruthlessly well-run mechanism can bring fruits and vegetables back to land where they once flourished, and deliver them to the people who need them most.