Walmart Opens First Beef Facility to Cut Costs and Boost Supply
Walmart launches its own beef processing plant in Kansas to control pricing, improve quality, and meet rising demand as beef prices soar.
Walmart has opened its first-ever owned and operated beef facility in Olathe, Kansas, marking a major shift in its supply chain strategy.
The 300,000-square-foot plant will process and distribute Angus beef cuts to 600 Midwest stores, cutting out third parties and aiming to reduce costs for shoppers.
Why Now? Rising Prices and Tight Supply
Beef prices are climbing fast:
8.6% year-over-year increase for beef and veal in May, according to USDA
Ongoing supply shortages with cattle numbers at a 74-year low
Industry experts say Walmart's new facility will help stabilize supply and offer more competitive pricing during these volatile times.
More Control, Better Quality
The new Kansas plant sources cattle from Sustainable Beef LLC, located within a 250-mile radius, ensuring local sourcing and greater oversight.
According to Walmart U.S. executive John Laney, this move brings “more consistency, more transparency, and more value” to customers.
Walmart has invested in Sustainable Beef since 2022 as part of its plan for an end-to-end supply chain for premium Angus beef.
A Bigger Play for Fresh Food
Walmart isn’t just tackling pricing—it’s also working to boost its reputation for quality in fresh food.
CFRA Research's Arun Sundaram notes this aligns with Walmart’s push to attract more high-income shoppers and improve its image in the grocery sector.
Source: https://www.foxbusiness.com/retail/walmart-cuts-out-middlemen-first-ever-beef-facility-prices-soar