Costco CEO Craig Jelinek told investors in Washington earlier this year “We cannot get enough organics to stay in business day in and day out.”
The financial assistance for organic farmers is only a pilot program and still in its infancy, reports the Seattle Times. At this stage, they’re working with one partner, a San-Diego based Andrew and Williamson Fresh Produce purchase a further 1,200 acres of land.
But Costco is hopeful that the project will be expanded for future farmers if successful. Long-term contracts and advance payments to organic farmers may soon be an initiative of the future as Costco struggles to keep up with customer demand in an era plagued by uncertain GMO production.