What affect does consolidation have on organic farmers, specifically small-scale farmers?
PH: Some small-scale farmers have lost price premiums which enabled them to stay in business, as larger farms were able to achieve economies of scale and/or externalize some of their costs. Others lost markets as the retail environment changed. For example, as Whole Foods grew they centralized their distribution system. They are now much less willing to buy from a small-scale farmer for one store, when they can buy from a large-scale farmer who can supply stores in an entire region. Consolidation in retailing also makes farmers more vulnerable in price negotiations with supermarkets. Farmers without other markets may have no choice but to accept a very low price for their product. AS: Why did you choose organic consolidation as your research focus? PH: Like most of my research, it was the result of responding to questions people asked me. I studied consolidation in commodities, dairy and supermarkets at the University of Missouri. When I talked about these trends in California people s
