components for our coconut supply chain in Sri Lanka.
We're doing a private label for coconut oil.
And so, I did the fair trade analysis as well as life cycle analysis for
our coconut supply.
Which meant talking to our folks in Sri Lanka and
understanding what it is that they do in terms of from the seedling
all the way through the production of the coconut oil.
And that helps us understand that they're using the entire tree and
being able to have almost zero waste.
Which is really great to understand that they're doing everything they can to use
every component of the tree and the plant.
>> Does it get into the workforce practices, workplace safety?
>> Yes, so the company that we're working with is going through
Fair Trade USA certification, but they haven't completed it yet.
So I sent them a long list of exhaustive questions trying to understand wages,
safety for the workers, as well as what their maternity leave practices are.
And if they have other benefits in terms of retirement.
Education and health care is free there, so
that isn't something the company is supplying.
But they're also working on building 100 houses in that region to
supply better housing for their employees.
They also have transportation within a ten mile radius of their facility that
comes around and picks people up, so that they don't have to walk to work.
because these are in rural areas, people certainly don't have cars.
And so, it's asking all of those questions getting into the minutia of
the daily life there.
>> So why are you motivated?
Why are you asking this?
What does it matter to Natural Grocers?
>> It matters because our customers are really conscientious.
They're very educated and concerned as to what they're consuming.
They care about where their dollars go.
And we want to support companies that are doing things that positively
impact not only your body, and the nutrients and food you want to consume.
But that you can understand that you're supporting companies and jobs, and
you're fighting against child labor, and all sorts of big-headed ideas.
As well as just making sure that your produce tastes good.
>> Thank you.
What are the some of the most important things you think about and
deal with in supply chain management?
>> So within purchasing for food, our main supply chain challenges
are having enough supply for 130 retail locations.
And doing it in a way that's efficient for people's time and resources.
As well as trying to support local products in different regions.
And trying to keep everything at an affordable price point.
It shouldn't be unaffordable to eat healthy.
And so, that's a big supply change challenge for us.
>> Can you give us an example of just what you're talking about here?
>> Yeah, so most produce is not grown in Colorado that you eat in terms of fruit.
So if you want to have good bananas, they generally will come from Latin America.
Specifically maybe Guatemala and other countries in Central America.
We don't grow bananas in Colorado because they don't grow at this altitude or
climate very well.
And so, there is a reason why you buy certain things in other locations.
And in Colorado, there's a lot of things we do grow well.
You can grow quinoa at this altitude and
you can't grow that in hot, humid climates.
And so, you want to grow things in the appropriate place where they're
actually going to thrive.
And so, if you want to source things locally, you need to do it in a way that
makes sense for the land management and water management of that region as well.
Not just buying everything or thinking you can get everything produced locally only.
It gets to be a big challenge for your wallet as well.
>> Yeah, so in your procurement process what is some of the decisions?
What are some of the metrics you use to evaluate sustainability?
>> Yeah, for every animal category we have different metrics.
We have our base level metrics, which is for animals.
You want to look at the space that they have outside which is going to vary.
If you're looking at laying hens who produce eggs versus broiler chickens,
which is what you use for meat.
Even, there's a differentiation between those two chickens and birds.
And so, you look at the space and the food that they need to eat, as well as.
Then when you're looking at ruminants,
if you're trying to look at carbon footprints.
>> And what's a ruminant?
>> Sorry, a ruminant is beef cattle, or anything with a hoof.
>> A lot of methane.
>> Yes, and so that's something we're still looking at.
Right now our main focus has been on the animal welfare side.
Trying to make sure that we're promoting the animals eating what they naturally
would eat and not having all of your beef cattle coming from feedlots.
And so, that is one way that we're trying to contribute to lessening the carbon
footprint, is that you are trying to promote real grass-fed beef.
>> Okay, so you're an organics grocer, so that automatically puts you
in one class compared to the general generic meats and produce that you raised.
What are the things that differentiate among organic farms, organic groceries?
How does a consumer differentiate?
>> So Natural Grocers, we do have 100% organic produce.
When you're looking at shelf stable or fresh frozen items that isn't all organic,
much of it is or non-GMO.
When you're looking at animals with antibiotics,
we require that there are no sub-therapeutic antibiotics.
Which means that they're not getting steroids or growth promoters.
Things that really change the animal and the meat and
speed up maybe their growth to an unhealthy level.
When you hear about turkeys at Thanksgiving time that can't even walk
because they've been pushed to grow so fast in time for November.
That is something that we don't push at all.
There's a new push in the industry, not new but
a bigger push, called heritage breeds and slow growth.
Specifically for birds to make sure that the animals are not being pushed to grow
too fast and that they're living natural lives that they would naturally live.
And so, our standards really speak to the antibiotics, growth promoters,
free range pasture-based, ruminant in dairy
that they're really out living the natural life that they would normally live.
>> Now do you just let the natural environment, let a market, dictate?
So you just say, we want to buy X tons of turkey and it needs to meet these
standards, or do you work with the producers to meet those standards?
>> So for turkey specifically we work only with Mary's, or Organic Mary's Chicken.
They're out in California and they are phenomenal.
They are really doing things the right way.
And so all of our turkeys come from them at Thanksgiving.
And we know generally what our supply need is and so
we do lots of preorders all throughout October and November so
that we can for the next year help them know how much they should expect.
That they can control their supply chain and
their growth because they have to start that process much earlier in the year.