Dive Brief:
- Walmart on Friday opened its inaugural owned-and-operated case-ready beef facility.
- Plans for the Olathe, Kansas, facility were first announced back in 2023, with the state’s governor saying at the time that Walmart would invest $257 million in the plant.
- This latest move by Walmart furthers its effort to grow a resilient end-to-end supply chain and underscores how it’s investing more in U.S.-made and sourced goods.
Dive Insight:
The newly debuted case-ready beef facility spans more than 300,000 square feet and is a significant step in Walmart’s ongoing work to create an Angus beef supply chain — a goal Walmart announced in 2019.
The facility will process and package fresh beef into case-ready cuts that are “ready for retail” and then shipped directly to Walmart distribution centers to serve stores across the Midwest, according to the announcement.
The beef will be sourced directly from Sustainable Beef LLC, based in North Platte, Nebraska, which Walmart made an equity investment in in 2022 as part of its work establishing an Angus beef supply chain.
Walmart’s new facility creates more than 600 jobs for the surrounding communities.
“This is the first case-ready facility fully owned and operated by Walmart, and that milestone ensures we’re able to bring more consistency, more transparency and more value to our customers,” John Laney, executive vice president of food at Walmart U.S., said in the announcement.
Walmart undertook a similar effort in March 2024 when it announced plans to open its third owned-and-operated milk-processing facility in 2026. Like the beef facility, this center aims to improve transparency and supply chain resiliency, according to Walmart.
Across the board, Walmart is continuing to beef up its supply chain and distribution network. In April, the retailer opened a 1 million-square-foot Sam’s Club distribution center in Florida and, a month later, purchased a 1 million-square-foot distribution center in Utah.
The opening of the beef facility also continues Walmart’s commitment to U.S. manufacturing and its pledge to invest $350 billion in U.S.-made products by 2031, according to the press release.
