Wal-Mart Stores, Inc., "said last month it would buy produce, meat and seafood only form suppliers accredited by private-inspection offices." The reference is to European (or European style) private food inspectors created and sponsored by cooperation of large food importors. The WSJ points out that Europe is the world's largest food importer, $20 billion last year. (John W. Miller, "Private Food Standards Gain Favor: Wal-Mart, McDonald's Adopt Europoean Safety Guidelines," The Wall Street Journal, Tuesday, March 11, 2008, B1.)
"The biggest such regulator, GlobalGap, now counts 81,000 farms and plants in 76 countries as members, up from 18,000 in 2004. The Cologne, Germany-based group expects to reach 100,000 this year, says director Kristian Möller."
McDonalds and Wegmans Food Markets, Inc. also contract with GlobalGap.
One attraction of private inspection is that it responds more quickly than national government inspection systems, such as the USDA and the EU, to new challenges to food safety and to changing consumer sentiments. GlobalGap is now large enough, in its indirect purchasing power, to force environmental changes on farmers, such as pesticide registration and limiting environmental emissions, in countries without such national regulations. It can also compel shippers and distributors to utilize tracking systems for food products.
Because the costs are high for farmers to meet GlobalGap's requirements, to date mostly large farms have been involved. But this practical locking out of small farms has forced small farmers to create cooperative organizations to share capital and costs.
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