07/08/05 Wal-Mart and the produce industry, finale

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 world's largest retailer. But Wal-Mart's 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 State's 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: We're 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 year's devastating hurricanes along the Southeastern United States. PETERSEN: The South Carolina peach industry probably would not be in business today if it wasn't for Wal-Mart. Very, very difficult year for those folks. And we're able to support them working through their state Department of Agriculture, to be sure we move the crop that they'll be able to get a return to those growers to allow them to stay in business. And it's working through the state Department's of Agriculture that we understand very, very localized growing that are going on throughout the country, and we're there to support them.