Walmart Expands Angus Beef Production Through Construction of New Processing Plant
In a significant move towards building an end-to-end supply chain for Angus beef, Walmart U.S. has opened its first-ever owned and operated case-ready beef facility in Olathe, Kansas. This 300,000-square-foot state-of-the-art plant is central to Walmart's strategy to increase supply chain transparency, resiliency, and quality control.
The facility processes fresh Angus beef procured exclusively from Sustainable Beef LLC, a Nebraska-based company sourcing cattle within a 250-mile radius around the plant. By controlling processing and packaging in one facility, Walmart can provide consistent, traceable cuts and distribute them to over 600 Walmart stores across 14 Midwestern states.
Key contributions of the Olathe facility to Walmart’s supply chain strategy include:
- Localization of sourcing and processing to ensure supply chain transparency and traceability.
- Direct packaging into case-ready cuts, reducing handling steps and ensuring product consistency.
- Strengthening supply chain resiliency by owning a major link in the beef distribution channel.
- Supporting local ranchers within a defined regional area, which enhances sustainability and community impact.
- Creating over 600 new jobs in the region, reinforcing local economic development.
- Aligning with Walmart’s broader goal of a $350 billion commitment to U.S.-made products by 2031.
John Laney, EVP, food at Walmart U.S., stated that the facility's opening is about delivering affordable food and quality customers can trust. The move is seen as ensuring more consistency, more transparency, and more value for Walmart customers.
Walmart serves over 270 million customers and members weekly across more than 10,750 stores and numerous e-commerce websites in 19 countries. The company's FY2025 revenue is projected to be $681 billion, and Walmart U.S. employs approximately 2.1 million associates worldwide.
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Meanwhile, Harris Teeter is refreshing its Charleston, S.C., market, and Giant Eagle is upgrading its distribution network technology with a partnership with Manhattan Associates. The new Target store in Denton, Texas, features a larger-than-average fresh and frozen food and beverage section.
Kansas Governor Laura Kelly stated that Walmart's investment in Olathe is further driving Kansas' success in the agriculture industry. This investment is a testament to Walmart's commitment to providing quality, affordable food and supporting local communities.
- Walmart's investment in the Olathe facility, involving localization of sourcing and processing for Angus beef, also includes a focus on finance, as it aligns with Walmart's broader goal of a $350 billion commitment to U.S.-made products by 2031.
- To foster a sustainable lifestyle, Walmart not only provides a consistent, traceable supply of fresh food-and-drink products through the Olathe facility, but also supports local ranchers within a defined regional area, creating over 600 new jobs in the region and reinforcing local economic development.