Walmart Details Plans To Expand Local Sourcing
Last updated Tuesday, July 1, 2008 6:54 PM CDT in Business
By Kimberly Morrison
The Morning News
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SPRINGDALE - Walmart Stores Inc. on Tuesday said it was bringing more American farmers into its supply chain to keep food prices down amid rising fuel costs.
Partnerships with U.S. farmers have increased 50 percent in the past two years, resulting in more locally grown produce in its stores, the retailer said.
Walmart said fruits and vegetables grown in-state account for about one-fifth of the produce in its stores this summer.
Produce grown in Arkansas that will be sold in stores in the state include blueberries, tomatoes, blackberries, peaches, watermelon, squash and zucchini.
The retailer first announced its plans to increase local sourcing last month as it looked for ways to reduce transportation costs while supporting its goals to sell products that are Earth-friendly and ethically sourced.
"We're taking it to a new level with a pledge to grow our partnerships with local farmers," said Pam Kohn, Walmart's vice president and general merchandise manager for grocery.
This year, Walmart expects to buy about $400 million in locally grown produce from American farmers.
The retailer will also be working with state departments of agriculture and local farmers to develop or revitalize growing areas for produce like corn in Mississippi and cilantro in southern Florida.
By buying cilantro from Florida for distribution across the East Coast, Walmart saves some 250,000 miles in one season, the retailer said.
The retailer's new ventures in local sourcing will carry across borders, as revealed last month by a company executive.
"We are partnering with farmers, small growers, that went from selling just a few kilos or bushels a week and making them commercial suppliers," said Ignacio Perez Lizaur, chief executive of Wal-Mart Central America.
The company is working with 22 peasant farmers in Guatemala to make them suppliers for some of its 145 stores in that country, Lizaur said.
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