Walmart-at-the-Crossroads-FINAL-06.04.15

V. Industry Reports
Along with the environmental and labor standards put forth by Walmart for their suppliers, in
2010, the company introduced a set of Global Sustainable Agriculture Goals. In this report, the
company pledged to support local economies, help small and medium farmers expand their businesses,
and reduce the environmental impact of farming within a five-year timeline.
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Research on four
different food sectors indicates, nevertheless, that Walmart is not keeping its suppliers accountable to the
labor, environmental, and sustainable agriculture standards that its own company put forth and is
involved in practices contrary to its Global Sustainable Agriculture Goals.
1. Mushroom Industry
Mushrooms have become an increasingly more
important specialty crop over the last few years. Demand for
mushrooms has been growing steadily since 2011 and reached a
record high at the end of 2013.
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The value of mushroom sales
in the U.S. also increased each year from 2011 to 2014, reaching
over $1.1 billion in sales.
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Walmart sources its mushrooms primarily from two
companies: Monterey Mushrooms, Inc. and Giorgio Foods, Inc.
Monterey Mushrooms is presumed to be the key supplier to stores in Los Angeles, Washington D.C.,
and Chicago because it occupies more shelf space than Giorgio products and is found in more store
locations than Giorgio Mushrooms. Not only are Monterey Mushrooms and Giorgio Foods the top two
mushroom suppliers for Walmart, but these two companies are also the largest mushroom suppliers for
the entire nation.
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“Walmart sources its
mushrooms primarily from
two companies: Monterey
Mushrooms, Inc. and
Giorgio Foods, Inc. … these
two companies are also the
largest mushroom suppliers
for the entire nation.”
Given their respective power in the industry, the two companies cooperate with one another in
the production process. For example, Monterey Mushrooms leases a portion of its growing facilities to
Giorgio Foods, which then sells the product back to Monterey Mushrooms. They share trucks and
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