Amazon rocked the grocery world this month with its plan to buy Whole Foods. While the deal has not been approved yet, it's still generating all kinds of commentary on what it would mean for supermarkets and consumers. At the Washington Post, however, Caitlin Dewey assesses the "big consequence" that "no one's talking about": the deal's effect on small and mid-sized organic farms, and on the entire organic market in general. In short, it may be bad news on both fronts. Details on that and other aspects of deal:
- The farms: Smaller farms are worried that Amazon will do to them what it did to small players in the publishing industry: make them obsolete. Whole Foods is the nation's biggest organic retailer, and Jeff Bezos' push for lower prices may mean that only large industrialized operations will survive.
- 'Organic': "But the real harm may come to the organic brand if Amazon pushes for price concessions that lead producers to compromise on environmental and formulation standards," writes Dewey. It's possible consumers might see more products labeled as "natural" instead of "organic." Unlike the latter, the "natural" label means nothing in the eyes of the Agriculture Department.