The population of America continues to grow in the desire to eat more organic foods. In order to respond to this cry, Costco is planning on investing in farm-to-market on a massive scale. The plan includes helping farmers buy land and providing resources and equipment for them to grow organics. The result will be more organic products for Costco to provide a growing market.
The plan is running a bit slowly at the moment. The plan is for Costco to be able to loan money to farmers to buy appropriate equipment as well as land. For now, there is only one partner they are helping, Andrew and Williamson Fresh produce, from San Diego. The help they receive from Costco will help them acquire more than 1,000 acres in Baja California, Mexico.
Jeff Lyons, Costco's senior vice president of fresh foods at Costco said, “By helping them with financing, we got access to and purchased about 145,000 cases of organic raspberries that we normally would not have access to.”
The idea of Costco is to expand to attract more land producers in Mexico and Chile.
"The challenge for the farmer is: 'We may go down this road and what happens if something bad happens?' We have to make sure we don't get them in a position of financial trouble. We need to make sure the loans are totally secure. If it doesn't work out for them, we want to continue to buy conventional from them to make sure they're A-OK," says Lyons.
Even though this is a good initiative and a rather logical step for Costco to increase organic production, this is not the first time the company has aimed towards providing healthier options. Costco started working with a Mexican vendor to obtain wild shrimp from the Sea of Cortez. They also hold a contract with organic field owners in Nebraska to increase their stock of beef.