[Lilybeans]

This will not end well for Cabot or the farmers. Wait two years and then see how they are doing. See if they change their business model to suit Wal Mart and get away from what made them good in the first place. See if the farmers are actually losing money because of this.

[RunawayJim]

Originally Posted by Lilybeans

This will not end well for Cabot or the farmers. Wait two years and then see how they are doing. See if they change their business model to suit Wal Mart and get away from what made them good in the first place. See if the farmers are actually losing money because of this.

It could end for Cabot however the farmers want. It's a co-op and the farmers (the owners) could decide they won't sell to Walmart anymore because they're not getting paid enough. Walmart could probably care less, but I'm curious how many people who shop at Walmart are buying products like Cabot cheese.

[mustmove]

How could it not end well for the farmers? If the product is local certified organic how can the farmers change that to suit wm? Read the article organic produce at wm costs the same as organic food at whole paycheck, wm isn't able to lower the cost of producing organic, but they are able to find a bigger easier reached customer base. Everybody wins on this one.

[Logs and Dogs]

I’m not taking a side on this one either way, but I think the point about WM’s supplier practices etc. is centered around becoming dependent on WM for cashflow. Here’s an example:

WM wants to buy your cheese, you would love to have an outlet to sell 100% of everything you can produce…..so you enter into the agreement. Currently they pay your rate, which is fair. Down the road they approach you to see if you are interested in expanding your operation as there is a significant demand for your cheese. So they enter into an agreement with you and you spend a large amount of capital to expand your operation, build a larger processing facility, more trucks, more cows, more everything. Life is good. Then comes time to renegotiate the arrangement, WM says they really love selling your product but margins are thin, and we would like to buy the same amount, but at a slightly lower price………..well, you now have this huge operation that would be running at a fraction of capacity without WM so you agree. This is the slippery slope people are talking about………

If Cabot etc. can keep their supply within their capabilities and not become beholden to WM, then great, but as soon as WM has some leverage, why wouldn’t they use it? It is pure business.

[arctichomesteader]

I think Cabot could walk away from walmart right now and still do okay. That's not true of many other smaller producers though that don't have the widespread reputation and customer base that Cabot has. Walmart's usual practice is to demand lower prices and lower prices until you either outsource or stop doing business with them...and if you went into debt to expand because of walmart you're stuck.

[Logs and Dogs]

Originally Posted by arctichomesteader

I think Cabot could walk away from walmart right now and still do okay. That's not true of many other smaller producers though that don't have the widespread reputation and customer base that Cabot has. Walmart's usual practice is to demand lower prices and lower prices until you either outsource or stop doing business with them...and if you went into debt to expand because of walmart you're stuck.

Exactly...........

[mustmove]

If you make bad business decisions you will be sunk even if wm is a customer. How does anyone think a local organic farm is going to expand beyond its britches in VT? Outsourcing local foodstuffs? How? I suppose you could have fraud either on the farmer's side or wm's. I thought all the organic labelmaker's unions have watchdogs for that sort of stuff. Even if malfeasance is possible is that reason enough to not partake in more economic activity?

Originally Posted by arctichomesteader

I think Cabot could walk away from walmart right now and still do okay. That's not true of many other smaller producers though that don't have the widespread reputation and customer base that Cabot has. Walmart's usual practice is to demand lower prices and lower prices until you either outsource or stop doing business with them...and if you went into debt to expand because of walmart you're stuck.

[MRVphotog]

I think if your business is dependent of WM as a buyer than I think that can be very problematic. I think Cabot has a much broader sales base less of an effect if the relationship goes south.

Probably whizzing in the wind but I'm hoping the Legislature is starting to get that Vermont needs to rework some of the headwinds Vermont's regulations produce as far as new businesses/companies coming to Vermont. Act 250 is the 800 gorilla in the room.

So many states are broke and are now going all out to woo new companies to move to their respective states. Having a great rep in the lifestyle qualities of Vermont is not enough.

As mentioned Vermont cheese is one product that can't be imported from China, the industry is growing. Now 60 cheesemakers in the state.

The 2010 World Championship Cheese Expo held in Wisconson, Cabot yielded only one first place(about 30 diferent catagories) but other Vermont cheesemakers did better. Several New York cheesemakers did well too.

[BickleTravis]

Originally Posted by Lilybeans

Anything Walmart touches will eventually end up in China. All they are doing is looking to destroy something else. There is nothing good about Walmart.

Facts, please?

[Lilybeans]

Originally Posted by BickleTravis

Facts, please?

Search for Wal-Mart and Vlassic, or Rubbermaid, or Huffy.