Wal-Mart’s Surprising Role in the Food Safety Crisis

An Editorial Comment on the Nation’s Largest Grocer
By Larry Mitchell, Chief Executive

With an ongoing food safety crisis involving everything from the recall of melamine-infused pet food to the quarantine of contaminated livestock to the tainting of frozen catfish fillets, glaring inadequacies are being found in America’s import and food system – inadequacies that are putting the health of consumers, the safety of the American food system and the vitality of America’s heartland at risk. 

As a system severely altered by the global economy, it has grown farther removed not only from our heartland, but from USDA and FDA food safety standards. Surprisingly, it’s also a system that is heavily influenced by Wal-Mart, the world’s largest company and the nation’s number one grocer.  Through the years, Wal-Mart has quietly but forcefully opposed additional food safety regulations and port inspections, as well as country of origin labeling (COOL).  It has put corporate profits over its customers’ safety time and time again—a dangerous combination not only to the direction of the American food system, but to the health and safety of the American consumer.

Most people are not aware of the massive effect that the world’s largest company has on the American food supply.  As noted by Charles Fishman in his book The Wal-Mart Effect, Wal-Mart is China’s eighth largest trading partner. In 2004, almost 10 percent of everything imported to the United States from China was imported by Wal-Mart. With the way Wal-Mart pushes their suppliers to do business at the lowest possible cost, systems are poorly regulated and done on the cheap.

The role of China in American products extends beyond pet food and non-perishable goods.  The precedent that such imports set can be felt system-wide.  According to the Washington Post, “China’s agriculture exports to the United States surged to $2.26 billion last year, according to U.S. figures - - more than 20 times the $133 million of 1980” [“China Food Fears go from Pets to People,” Washington Post, 4/25/07].

Both the problem and the solution are complex, which is what elicits the well-known metaphor of the 3-legged stool.  In this case once again the three legs are government, business and consumers.  First, concerning government, the FDA and USDA must address questions of priorities, resources and budget to improve and enforce stricter import standards and inspections.  Congress has a significant role to play in applying pressure to these organizations and addressing the bigger issue of foreign trade standards.

Second, the critical role of business, especially retailers cannot be overlooked.  As the world’s largest retailer, it distributes massive quantities of imported goods.  Wal-Mart should use its significant clout with China and other importers to demand higher quality standards and more product testing.  On the home front, Wal-Mart should stop fighting additional inspections and country of origin labeling, which would allow customers to know whether they are buying beef from Iowa or China.  Wal-Mart should also consider returning to its abandoned “Buy American” campaign and support U.S. manufacturers and local farmers rather than shifting jobs and purchases overseas.

Third, as American consumers we can use our purchasing power to influence how business responds to the challenge. Without assurances that imported goods are subject to rigorous inspections to ensure their safety, we can opt to buy locally grown and American-made products when we shop for groceries and other items each week.  We can also decide that if we don’t know where a product comes from, maybe we don’t need it.  Purchasing in such a manner not only supports local farmers and U.S. manufacturers, it protects consumers.  It also provides the opportunity to strengthen our farm economy while protecting our food supply.

Wal-Mart is uniquely positioned to restore confidence in our food supply and make lasting changes.  Other companies are usually quick to follow Wal-Mart’s lead.  With $11 billion in profits last year, maybe Wal-Mart will fulfill its obligation to do what is right by its customers and help the country move toward a meaningful solution. 

Posted by Web Team on Tuesday, May 22, 2007

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