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I recently had a reader who questioned how I could possibly be opposed to Wal-Mart carrying more organic food? Surely, my opposition must mean that I think only the wealthy should be allowed to eat organic. It must mean that I’m ignorant or arrogant or both.

Here is what it really means: WalMart has proved destructive to every industry it has touched. Most businesses who have started doing business with WalMart have eventually been forced to outsource their labor. So, what will this mean to the organic industry? Will organic suppliers no longer be able to afford to continue growing?

I have to admit I’m not an expert, but if you’re interested in reading what the experts have to say on the subject, you can read this paper by Professor Emeritus John Ikerd, who specializes in agricultural economics. Here is an excerpt:

The national supermarkets could be joined by food discount chains, such as Walmart, in initiating a round of cut-throat price competition — which to date has not been seen in organic markets. Walmart is notorious for driving out competition by cutting prices. Supermarkets will not mount a major national advertising and promotion campaign for organic foods, until they have a strategy for ensuring that each dollar spent for organic doesn’t mean a dollar less spent for non-organic foods in their stores. Thus, they will attempt first to gain market share from the specialty chains. They may force the specialty chains out of business through price cutting, or may buy them out if pricing them out becomes too expensive.

Under either scenario, price cutting at the retail level will force prices paid to organic producers to the lowest possible levels. Organic producers will be forced to specialize, standardize, and centralize their production systems in order to achieve economies of scale and reduce costs to levels necessary for survival. Many smaller, independent organic producers will be forced out of business by reoccurring production surpluses and chronically depressed prices. Organic consumers may benefit from lower prices, at least initially, but they will no longer have choices among products produced under alternative “organic-like” production methods. Standard organic methods will reflect the least cost means of meeting minimum government standards.

Ultimately, mass markets for organic foods will be controlled by a few large corporate retailers and will be supplied by a few large corporate producers. Supplies will be restricted in order to stabilize prices at levels high enough to yield acceptable returns to corporate investors. Only then will stability and profitability return to organic mass markets. Organics will have become industrialized.

So, there you have it. A summary of my non-arrogant, non-ignorant concerns over Wal-Mart entering the organic industry. Feel free to disagree.