Friday, April 15, 2016

Organic Does Not Equal Small or American

Modern Farmer has a piece on the costs of converting farmland to organic (it requires a multi-year history of only organic methods being used, which is costly) so Costco is going to finance some vertical integration:
"This first initiative will find Costco partnering with Andrew & Williamson Fresh Produce, based in San Diego, to buy equipment and 1,200 acres of land just south of the border."
As I say in the previous post, the organic premium and demand is there now, but I predict an overbuilding of capacity. 

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