Organic ranchers eye Amazon distribution ahead of Whole Foods deal

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Amazon.com Inc plans to meet on Wednesday with a dozen U.S. ranchers, seeking to expand distribution of organic and grass-fed meats as it takes over Whole Foods Market Inc, according to the meeting’s organizer.

Analysts and investors have speculated that Amazon is aiming to combine its expertise in order fulfillment with the grocer’s facilities to build out delivery of fresh food, but the online retailer has not yet detailed its plans.

Amazon visited Georgia grass-fed meat producer White Oak Pastures in March, 2-1/2 months before announcing the $13.7 billion Whole Foods takeover, to discuss a possible distribution deal, White Oak owner Will Harris told Reuters.

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The retailer later asked the farmer to invite other U.S. livestock producers to discuss distribution of organic and grass-fed meat, Harris said, reports Reuters.

Amazon declined to comment.

“We are excited about exploring possibilities with them,” Harris said. “It suggests that this niche in the market is becoming mainstream enough that they feel their delivery system might have traction with it.”

U.S. sales of organic meat and poultry, worth $991 million, climbed 17 percent last year, marking its fastest-ever annual growth, according to the Organic Trade Association (OTA).

White Oak and some of the other meat producers invited to the Atlanta meeting already sell to Whole Foods, Harris said.

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