Retail demand for organics is exploding so rapidly that Costco is actually lending money to farmers to grow more organic food

Wednesday, April 20, 2016 by: Isabelle Z.
Tags: Costco, organic farming, financial assistance

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(NaturalNews) In news that will be embraced by health-conscious consumers and organic farmers alike, Costco is finding the demand for organic food to be so staggering, that it is lending money to farmers so they can grow enough organic food to keep up.

The Seattle Times reports that Costco came up with this brilliant solution in response to the growing demand by its customers for organic produce. In fact, organic food is one of the quickest growing types of food in terms of sales numbers, a strong sign that people really are starting to insist on clean food that has not been adulterated by toxic chemicals.

Costco's CEO, Craig Jelinek, said that they simply "cannot get enough organics to stay in business day in and day out."

Win-win situation

In one of several new initiatives, the firm will lend money to San Diego's Andrew and Williamson Fresh Produce (A&W) so that they can purchase 1,200 acres of land in Baja California, along with the equipment needed to grow the food.

The idea was born when Costco's senior vice president of fresh foods, Jeff Lyons, toured the produce company. Their experience growing organic produce impressed him, but he saw that they lacked the funds to purchase additional land to expand these organic growing efforts. As part of the loan, Costco has also purchased the first rights on everything that comes off the land that meets certain requirements.

Lyons told the Seattle Times: "By helping them with financing, we got access to and purchased about 145,000 cases of organic raspberries that we normally would not have access to."

It's a win-win situation, as A&W can increase its presence and operations in the organic food industry, while Costco can boost its business. The biggest winners of all, however, will be consumers, who are increasingly clamoring for healthy, organic produce options.

Initiatives popping up everywhere

This is just the latest move that shows how seriously Costco takes the health of its consumers. It has already shunned genetically modified salmon in its stores. It has also contracted with farmers in Nebraska to raise their cattle on organic fields, and it has been sourcing its wild shrimp from the Sea of Cortez, to avoid slave labor produced shrimp that comes from Thailand.

The sales numbers of food from organic farms have risen dramatically, with spending on organics enjoying a 72 percent jump since 2008. Costco is the world's second-biggest retailer. It sold around $4 billion worth of organic food last year across its 487 stores, making it the nation's top organic grocer, and giving Whole Foods a run for its money.

Pacific Foods and Nature's Path also have their own organic farms, while Whole Foods launched a $25 million increase for its Local Producer Loan Program in recent years. The Whole Foods program supports non-GMO animal feed, sustainable packaging, biodynamic farming and pollinator health. Chipotle Mexican Grill has also started funding organic farming operations.

This is a smart business strategy that will likely pay off quite well for Costco, and one can only hope that other retailers will get on board, as the consumer demand for organic food continues to rise, and people get fed up with the many unacceptable options found in typical grocery store produce sections.

People who are concerned about the quality of their food can download a free preview of Food Forensics by Mike Adams, the Health Ranger. This book exposes the hidden dangers in many foods, and provides sound advice for ensuring that you and your family avoid these toxins, and enjoy only the purest foods.

Sources include:

EcoWatch.com

NaturalNews.com

SeattleTimes.com

Science.NaturalNews.com