Farmers Can Benefit From High Fuel Costs
July 28, 2008 -- As the price of fuel keeps going up, consumers find themselves cutting as many corners as possible to alleviate some of the burdens of travel. Even the simple act of grocery shopping is being reconsidered as frequent runs to the store can add to the gas bill.
Retailers also are feeling the pain of higher transportation costs, but don't want to pass on the expense to an already strapped consumer. To address this, many chains are turning to local farmers; sourcing produce in proximity to save millions of dollars in fuel and other transportation related costs. The result is a "win-win-win:" for the store, the farmer and ultimately the consumer.
Locally Grown
Wal-Mart and A&P stores are two major grocery chains that are remodeling their produce sections with a more local flare. Working with farms across the United States, these retailers are saving millions in fuel costs.
Thanks to partnerships with various local farmers in New York, New Jersey, Delaware and Maryland, The Great Atlantic & Pacific Tea Co. (A&P) is now the largest buyer of locally-grown produce in the Northeastern United States. As a result, consumers can purchase local produce at A&P's 447 stores in eight states and the District of Columbia under the banners of A&P, Waldbaum's, Pathmark, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. In addition, Long Island Waldbaum's and Pathmark stores will offer corn, tomatoes, green peppers, squash, romaine lettuce, cauliflower, cucumbers and white potatoes from local farms.
"Long Island farmers produce some of the finest produce in the Northeast, and every time a major supermarket chain commits to selling their harvest locally, it's a win for the farmers and a win for the entire community," said Sen. Charles E. Schumer (D-N.Y.), who attended a press event at a Waldbaum's store in Jericho, N.Y., to unveil the local produce initiatives, on July 21, 2008.
A&P has also joined forces with Foxy, a California lettuce supplier, to work with a local farm in Chester, Scattered Acres, that will supply romaine hearts, green leaf and red leaf lettuce to the grocer. Thanks to shorter shipping times and lower freight costs, Waldbaum's and Pathmark customers will have access to fresher, more affordable lettuce, the grocer says.
The many produce items available through this initiative also include New Jersey blueberries, peaches, corn and tomatoes; Maryland corn and melons; and Delaware watermelon and cabbage.
Wal-Mart Stores Inc. is also rolling out a new program to add local greens to its stores. The Local Grown program kicked off at a Tulsa, Okla., store this month [pictured right]. Angela Stoner, senior public affairs manager for Wal-Mart, says that while the department store has offered local produce in the past, the company is now making it a priority.
"We have seen customers want to support the local community and be able to buy products that sustain our environment," Stoner says. "They also want to purchase products that are affordable and they can see the benefits of supporting the local community and state."
Stoner adds that shortening the distance from the farm to the fork is one reason the company chose to partner with more local farmers. By reducing the miles food has to travel it can help conserve fuel and cut transportation costs. "It not only saves Wal-Mart money at the end of the day, but it saves the customer as well," she concludes.
According to greenbiz.com, during the last two years, partnerships between local farms and Wal-Mart jumped 50 percent, and the company anticipates it will source about $400 million in local produce this year.
"For instance, buying 12 million pounds of peaches from farms in 18 states saves the company 100,000 gallons of diesel fuel compared to its previous practice of sourcing peaches from only two suppliers," the Associated Press reported.
The company estimates more than 70 percent of its produce originates in the United States. Produce, in general, travels an average of 1,500 miles from farms to consumers, according to Wal-Mart. It plans to work with state agriculture departments to spur the revitalization of areas to grow new or native crops, such as corn in Mississippi or cilantro in South Florida.