Letter to Lee Scott Re: Organic Products [Cornucopia Institute- Mark A. Kastel]

In numerous media interviews, when asked about the impact of your company's move, I have said that this could have great positive or negative implications. I stated that if Wal-Mart applied its logistical prowess to increasing the availability of organic food in this country, at pricing commensurate with your economies of scale, this would be a big win for both organic consumers and farmers.                                                                                                                                                                                                                         However, I also said that if instead your organization decided to "Wal-Mart" organics by applying its standard business model, squeezing out margins for suppliers to sub-subsistence levels, the company’s move could inflict profound damage to an industry that has offered hope to so many. Unfortunately, we now have completed enough research to indicate that Wal-Mart is pursuing the latter strategic path. Already cited in numerous media reports as the largest retailer of organic milk in the country, in addition to partnering with Dean Foods to offer Horizon dairy products, we have now learned that your company is offering private-label milk manufactured by the country's largest factory-farm "organic" processor, Aurora Organic Dairy.