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Local Organic Producer Takes on Produce Oligopoly

November 2, 2012
By: Boyce Thompson, AgWeb.com Editorial Director google + 
 
 

A young producer sets his sights on creating a national chain of organic produce producers

Pierre Sleiman, Jr., thinks very big for a young guy, only three years out of college.

Starting with his organic produce farm in Encinitas, Calif., he wants to create network of local organic farms that could take on a California-based produce oligopoly that accounts for a majority of sales in this country.

"They’ve served us well," he said, referring to the handful of companies that have controlled the business for hundreds of years, "but they aren’t willing to change things completely. Agriculture hasn’t had the kind of innovation that other industries have had, the kind that disrupts."

Sleiman wants to be that disruptive force, he has a long way to go with only 400 customers in one metro market. He believes that local organic producers possess some strong competitive advantages, even if they don’t have the working capital, the logistical dominance and the customer base that the big guys enjoy.

First, local growers can deliver quality organic produce to restaurants and supermarket within a day, where it may take national companies up to a week to ship produce from one part of the country to another. This may matter greatly to restaurant chefs looking for fresh ingredients and supermarkets that specialize in fresh, organic produce.

Lettuce and other produce shipped nationally may spend time in cold storage whereas Sleiman's company, Go Green, can ship fresh the next day. To make that point, the company leaves root balls on its butter lettuce, which also doubles or triples the product’s shelf life, Sleiman said.

Go Green’s lettuce scores higher on the green charts since it is produced locally, in closer proximity to the stores and restaurants that sell it. That reduces transportation costs, middlemen and all the fuel used to power trucks, refrigeration and storage.

"My mission is to put a mini-farm in every populated area of the U.S. It should be branded and organic."

The organic produce industry certainly has wind beneath is wings. U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $26.7 billion in 2010, according to the Organic Trade Association.

Go Green has achieved some notoriety. John Mackey, the CEO of Whole Foods, has asked Sleiman to build an organic farm on top of one of his stores. The company has also had success selling to Costco and Wal-Mart, which allows its stores to buy local vegetables.

The old ways of produce farming pose significant risks, according to Sleiman. Fuel costs are skyrocketing. Weather is always uncertain. Water is running out. And there’s always the issue of food security on open farms.

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COMMENTS (1 Comments)

Ric Ohge - Belmond, IA
The Pundits will suggest this kind of Farming is a direct threat to "Modern Industrial/Commodity Farming". Actually it could open up more local markets for Commodities Producers. Folks like fresh, and if the "Obesity Epidemic" in the US has taught us nothing else, Americans like to eat. Organic growing as an Industry? Americans like food that tastes good. All other arguments aside, most Organic food DOES taste better. But at the end of the day, "Organic Farmers" are...well...simply Farmers. (They come in "Flavors", but share an ancient Legacy and Brotherhood in the Soil and Seed-get it?)
11:07 AM Nov 2nd
 



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