A while back, I wrote about Wal-Mart’s efforts to go green, including their efforts to implement green technologies and push their supply chain to go green. I’m happy to report that Wal-Mart is continuing to forge ahead with its efforts.
Over the past two years in the U.S., Walmart has increased the number of local farmers it works with by 50 percent. It expects over $400 million of produce will come from local sources this year, which is defined as purchasing and selling produce in the same state. Before you scoff at the fact that Walmart defines local as the same state and not within some arbitrary 150 mile radius, remember Walmart’s massive scale and the fact that there probably aren’t many farmers who can support supplying a few Walmart stores, let alone a single one. Also, ask yourself how many times you’ve eaten a Florida or California orange or produce grown in another state. Sourcing intrastate is a big step forward, especially since produce travels 1,500 miles on average before reaching consumers’ homes.
Walmart gave peach sourcing as an example. By sourcing peaches from 18 states instead of two, Walmart saves 672,000 miles and 112,000 gallons of fuel, equivalent to approximately $1.4 million in transportation costs. Given grocery accounts for 41 percent of Walmart’s U.S. sales, it’s easy to see how savings like this add up quickly. In addition, by sourcing more produce locally, Walmart is ready to accommodate the already large and growing demand for organic produce.
One of Walmart’s biggest principles is to lower costs so savings can be passed onto customers. It’s no secret a big reason Walmart is going green is that it’s good fiscal policy for them. Walmart saves money through many of its green initiatives, and they’re not afraid to admit it. Walmart may not do everything right, but it’s efforts to go green should be applauded by all of us. The next step I’d love to see Walmart take is to identify how eco-friendly (or not) a product is relative to competing products in the same class.
