Costco is one of the greatest distributors of organic food products in the USA. Craig Jelinek from CEO claims that this company sells more than it can even produce. He points out that they can’t get enough organic in order to stay in business. This company came up with a new innovative idea that can increase organic production.
The company members decided to buy land and equipment for farmers and they should grow organic produce for them.
This project is still in the beginning and so far, the company has worked with producer Andrew & Williamson Fresh Produce from San Diego. They loaned money to farmers so that they can buy equipment and land in the Mexican State of Baja California.
Through this initiative, they would encourage farmers to produce organic products and thus increase the organic business.
However, not all retailers encourage suppliers to go organic because it can take a lot of time and money to convert from conventional to organic farming.
The needed land for organic food is very expensive and scarce so that’s why Costco’s initiative is more impressive. This initiative is a result of the increased demand for organic products. The Organic Trade Association pointed out that organic food sales increased from $11.3 billion in 2004 to $35.98 billion in 2014.
Angela Jagiello, the association spokeswoman states that although demand is increasing there is not the same level of farmland. The domestic supply does not meet the demand.
However, this is not the first time this company spends money increasing the production of organic food. It has bought cattle for the farmers in Nebraska in order to increase the livestock of organic ground beef.
Such projects will encourage and also help the farmers to grow organic food that will increase the supply that can meet the increased demand. In this case, the farmers will reduce the need for imported products that can contain high levels of harmful bacteria, antibiotics, and pesticides.
Via Spoon University | Daily Health Post | Huffington Post | Eco Watch