Costco is starting to work directly with farmers by helping them by land and equipment to grow organic foods, according to a Seattle Times report.CEO Craig Jelinek touted the vast amounts food sold by Costco last year in a recent shareholder meeting. However, Jelinek told investors, “We cannot get enough organics to stay in business day in and day out.”
Getting creative, Costco has devised a plan to meet the growing demand for organic foods by:
– lending money to farmers, raising chickens at its poulty plant in Alabama
– working with a Mexican vendor to get wild shrimp
– contracting with Nebraskan farmers to raise cattle on organic fields
Currently, reports state that Costco is only working with one partner so far, Andrew and Williamson Fresh Produce, but is looking to expand its initiative.
Organic food sales have grown from US$11.13 billion in 2004 to US$35.95 billion in 2014, according to the Organic Trade Association.
“Demand is increasing. But we’re not seeing the same level of farmland,” Angela Jagiello, a spokeswoman from OTA, said.
