Wal-Mart Chokes On Organic Food

Farmers say the company miscalculated demand, manipulated supply
By Heather McPherson,  Newser User
Posted Apr 12, 2007 1:00 PM CDT
Wal-Mart denies failing its organic expectations   (Associated Press)
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(Newser) – Wal-Mart customers aren't buying organic food, and the farmers who stepped up production to supply the giant discounter are the big losers. A year ago Wal-Mart
ballyhooed an aggressive push into organic foods, saying they would offer 400 items at low cost. The company placed massive initial orders, farmers say . . . and then largely disappeared.

The organic push was part of company strategy to attract more upscale customers that CEO Lee Scott recently admitted went "too far too fast." And hardball tactics on pricing alienated farmers furhter: "Looking for ever-lower costs,"  said the head of one organic cooperative, "comes at a real cost to sustainability."