How Could The Amazon-Whole Foods Deal Affect The Hudson Valley?
Amazon acquired Whole Foods in late August this year. People were ecstatic to hear that prices at Whole Foods were set to drop.
"We can’t compete with lettuce at $0.99 a head."
One thing you may not have realized is how the Amazon-Whole Foods deal will affect local farmers. Specifically, organic farmers. After all, Whole Foods is a major organic and health food seller. You're not going to find any artificial colors, preservatives, or hydrogenated fats in there.
AgFunderNews met with organic farmer Erich McEnroe of McEnroe Farm, in Dutchess County to talk about how it could affect their farm. The main concern? Prices.
"The first thing Amazon did was lower the price of everything by 40% or 50%. So it’s going to put more pressure on farmers to lower their prices. Having Amazon as a mother company means it can subsidize Whole Foods to get a bigger market share, even if they lose money; they don’t care. We can’t compete with lettuce at $0.99 a head." McEnroe told Louisa Burwood-Taylor of AgFunderNews.
McEnroe also told Burwood-Taylor that they are paying their workers close to double what they paid them 15 years ago.
Will the Amazon-Whole Foods deal cause organic farmers in the Hudson Valley to go under? We certainly hope not.