Lundberg Family Farms - Business Model

Business Model

Lundberg Family Farms is uncommonly large among organic farms. It is also vertically integrated, as many corporate agribusinesses are. It owns about 5,000 acres (20 km2) and contracts for another 9,000 acres (36 km2). Around 70 percent is farmed organically, but the company calls the remainder "eco-farmed", which means that it is farmed with pesticides and fertilizers that are carefully chosen for minimal environmental damage. On the eco-farmed portion they use one insecticide, eight selected herbicides, some conventional fertilizers, and fewer cover crops. The conventional methods mean less labor and less cost, allowing the company to compete in conventional markets.

The company is controlled by an eight-member board of directors composed entirely of third-generation Lundberg family members.

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