The Walmartization Of Agriculture

Josh Sager | The Progressive Cynic | April 27, 2013

Walmart has become an icon of the corporate rush to keep costs low and profits high, regardless of the effects on society. They sell cheaply made goods—often produced in deplorable conditions—for low prices and keep overhead costs low by refusing to pay their workers a livable wage. It is this business strategy that catapulted them to be among the largest corporate interests in the world and allowed them to spread into virtually every corner of the United States.

Currently, approximately 25% of the American grocery market is controlled by Walmart, making it the largest single grocery distributor in the United States. In some areas—including many rural and low-income urban locales—this control is far larger than 25%, as the low prices of Walmart have crowded out competition and created a local monopoly.  As Walmart is so much larger than its competitors (ex. farmer’s markets), it is able to undercut the prices of their competition and squeeze them out of business.

The business model and sheer size of Walmart have caused their corporate practices to have huge impact on the global agricultural markets—they are so large that their choices lead to ripples in global agriculture markets.