Walmart-at-the-Crossroads-FINAL-06.04.15

cooperative joined the fluid milk business in 1950-1951. By 1952, Land O’Lakes had made its first
acquisition of another dairy company. This emphasis on consolidation meant that in 1967, Land
O’Lakes made 37 mergers and acquisitions. Since 1982, Land O’Lakes, Inc. has acquired or formed an
alliance with many major companies, such as Midland Cooperatives and Atlantic Dairy Cooperative.
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Today, Land O’Lakes has about 3,600 producer-members, 850 member-cooperatives, and
10,000 employees. The company often exceeds $14 billion in net sales and $306 million in net earnings
annually, making it number 194 on the Fortune 500 list of businesses.
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Some of the Land O’Lakes
employees are represented by the Teamsters union. Land O’Lakes is one of Walmart’s principal
suppliers of dairy products and has been cited more than once for environmental violations.
i. Environment
In March 2009, a local Pennsylvania newspaper reported that Land O’Lakes had contaminated
Mountain Creek and Yellow Breeches Creek in the town of South Middleton. Land O’Lakes was
permitted by the state Department of Environmental Protection to release treated wastewater into a
small stream that flows between the two now-contaminated creeks. Since Land O’Lakes purchased the
dairy plant in 1997, however, there have been half a dozen violations mostly involving stream
contamination. In July 2008, all of the fish, turtles, and other aquatic life in nearby Masland’s 13-acre
pond died due to industrial spills connected to Land O’Lakes.
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In response to the 2008 incidence,
Land O’Lakes agreed to pay a $55,152 civil penalty to Department of Environmental Protection for
violations of the Clean Streams Law in February 2009.
Walmart’s dairy suppliers are some of the largest companies in the world. Large retailers like
Walmart have contributed to this consolidation in the dairy industry, which our research has indicated
has overall not been to the benefit of the environment, workers, and farmers. In some cases, Walmart’s
dairy suppliers have been accused of hindering their workers’ right to collectively bargain and not
paying employees their owed wages. Companies, such as Dean Foods and Nestlé, have been cited as the
cause for small-scale farmers going out of business. Walmart must holds its suppliers accountable to
labor and environmental codes of conduct and its goal of purchases from small to mid-size farms.
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