Walmart has announced that it plans to invest $257 million (€238.3 million) to open a beef-packing plant in Olathe, Kansas in 2025, which would create more than 600 jobs.
The facility will package and distribute cuts of higher-grade Angus beef from Sustainable Beef LLC. Walmart had acquired a minority stake in the ranch-based beef processing plant last year, which is expected to be functional in late-2024.
The company's investment plans come at a time when consumers have been trading down to cheaper private labels due to high inflation.
Kansas Governor
"Technological advances in the food supply chain continue to reshape the industry. Walmart’s innovative new facility further solidifies Kansas’ position as one of the nation’s top food and agriculture states," commented Kansas governor Laura Kelly.
End-To-End Supply Chain
Walmart announced its intention to develop an end-to-end supply chain for Angus beef in 2019, with the goal too provide customers with more options for higher-quality meat. To achieve this, Walmart made strategic moves, including an equity investment in Sustainable Beef LLC last year.
The upcoming facility in Kansas will package and distribute a selection of Angus cuts from Sustainable Beef LLC in North Platte, Nebraska, to Walmart stores across the Midwest.
'At Walmart, enhancing quality is integral to how we innovate,' the retailer said in a statement. 'Once opened, our case-ready beef facility in Olathe, Kansas will mark an important next step in our journey to create an end-to-end Angus beef supply chain, ensuring our customers have access to the high-quality meats they expect at the Every Day Low Prices they rely on.'
Read More: Walmart Reiterates Goal Of Doubling International Gross Merchandise In Five Years
News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.
