Whole Foods Market and Grassfed Beef

There is mixed discussion about the possible role that Whole Food Markets might play regarding marketing of grass fed, pastured beef. The company is putting in a national distribution system, with regionally centralized distribution centers. Grass farmers have been concerned that such centers would lead WFM away from local beef.

An address in Nebraska by Andrew Gunther, WFM Animal Compassion Product Development and Sourcing specialist, seems to allay fears that local producers will be shut out of WFM markets. In the address, reported by Angela Jackson-Pridie, "Whole Foods Market Wants North American Raised Grassfed Beef in Their Stores Now," the Stockman Grass Farmer (December 2006), Gunther outlined requirements for beef suppliers, discussed a model contract, and indicated local sources for each store is the company's future.

WFM has an extensive set of requirements farmers must meet to guarantee their beef. The process is audited. The following 13 steps were outlined.

1. First contact (between the farmer and WFM)
2. Producer information pack dispatched
3. Producer interest
4. Farm/ranch visit arranged for WFM
5. Visit made by WFM auditor
6. Advice letter sent
7. Farmer provides letter of intent and a farm health plan
8. Followup visit by auditor
9. Audit
10. Offer of contract
11. Contract signed
12. Issue of conformation of compliance
13. Product delivery

The approval process for producers can take up to 20 weeks.

Here is the key discussion of WFM's vision by Gunther, as reported in the article:

" 'A food revolution is coming to America. The USA is where the UK was 10 years ago,' says Gunther.

The new terms are 'local' and 'organic.'

He supports 'on farm' processing and sees that the acceptance of state inspected beef is absolutely possible.

This means they will accept meat from a non-USDA inspected facility."

WFM is interested in both "natural" grassfed beef and organic (the regulated USDA term) beef. Natural beef steers can have supplemental feed in the last two months prior to slaughter.

Local producers make selling arrangements with the nearest store. "Local" is defined by WFM as seven hours travel time from producer to store. WFM intends to put kiosks at their meat counters with tags telling which beef came from which local farmer.

Beef can be sold "on the hook" or "boxed" at the store's back door. Gunther says that WFM's margin on the beef is not large; but WFM is paying cost + 20% to producers.

This report strikes me as very important. It indicates that WFM intends to keep the "local" in "natural" and "organic." The reference to the UK is also telling. From what I have read, British agriculture has been undergoing a revolution in local production, leading to artisanal or cottage production of cheese and dairy products and  game and fowl, especially. Presumably, this is the result of UK producers trying to re-establish themselves after the initial wave of products from the European common agricultural market pushed down so many of them.

If Whole Food Markets truly takes the leadership here, other markets, such as Walmart and the supermarket chains will probably follow. This could lead to a renaissance of American small farming. But I suppose I need to keep my optimism in check. We're only at the first steps of this promised revolution.