On July 1, Wal-Mart announced that it was going to become the biggest purveyor of local food in the country. From now on, the corporate office announced, every Wal-Mart would sell local food grown within its state’s borders. The company said it would buy $400 million of local produce this year. Here’s the first paragraph of the company’s press release:

“Wal-Mart today announced its commitment to source more local fruits and vegetables to keep produce prices down and provide affordable selections that are fresh and healthful. The retailer also reported that partnerships with local farmers have grown by 50 percent over the past two years – one example of the company’s efforts to support local economies, cut shipping costs and provide fresh food offerings.”
The announcement is the culmination of a two-year campaign by Wal-Mart to paint itself green in the produce department. In 2006, Wal-Mart started a P.R. campaign called “Salute to America’s Farmers” featuring produce items from local farms. Growers at farming conferences last winter reported that company representatives were promoting a “Heritage Plan” in which Wal-Mart would buy produce from growers who would let them film them on their farms. This year, Wal-Mart organized regional meetings for farmers to learn how to sell to the giant chain. One such event in Missouri, I’ve heard, was cancelled for lack of interest.

The response to the recent Wal-Mart announcement has been mixed. Many established mid- to large-scale produce farmers are thrilled at the prospect of selling to America’s biggest retailer. But some of those already selling to Wal-Mart are worried they will end up losing business; for example, Washington apples now sold in every Wal-Mart in America may be supplanted by local apples.
Small, direct-market growers—the people who come to my mind when I think of “local food” — won’t be directly affected by the Wal-Mart initiative. First of all, most don’t have the capacity — or the desire — to produce enough to satisfy a Wal-Mart distribution center. One of those Indiana farms that was featured in the “Salute” last year sold 55,000 pounds of asparagus to Wal-Mart. Not many growers who sell locally can divert that kind of quantity to one buyer. Nor do most small growers have the money to pay for third-party food safety audits, which Wal-Mart says it will require.

Nevertheless, Wal-Mart’s local-food campaign could have repercussions for small growers. Farmers market customers might decide it’s easier to get their “local food” at the Wal-Mart Supercenter, or perhaps even want to encourage Wal-Mart by shopping there. “Might this be one of a series of corrections that will force some sense into our topsy-turvy food system?” says a blogger on National Geographic’s Green Guide web site. “If the biggest retailer on the planet is saying, ‘Let’s cut our fuel oil use and source what we can from farms that are close to our stores,’ then that’s the sort of dollars-and-sense response to tough economic times we all should be lining up to support.”

Wal-Mart also is likely to offer cheap prices — even the press release says so. And the company is notorious for taking on suppliers, encouraging them to expand to meet its demand, and then forcing price cuts. Prices for local food, in season, could be driven downward in future years.

Wal-Mart’s claim to Local Food follows a pattern that has affected our businesses for decades: small, artisanal farmers bring high-quality specialty products to the marketplace and build demand for them. Agribusiness sees a profit and jumps in, swamping the boat with oversupply and low prices. Some examples: fresh herbs, garlic, baby vegetables, salad mix, specialty cut flowers, organics.

Local farms have survived all of this market flux, and there is no doubt we’ll survive this one. But let’s be sure to tell customers that our proximity to market is just one reason to buy food from us. Our stories are much more compelling than Wal-Mart’s.