Walmart cuts out middlemen with first-ever beef facility to better manage costs and meet customer demand. The retail giant recently opened a 300,000-square-foot beef packaging plant in Olathe, Kansas. This new facility will supply Angus beef cuts directly to 600 stores across the Midwest.
By cutting out middlemen, Walmart can reduce costs that typically increase due to extra handling and packaging. This move also improves supply chain transparency and consistency for consumers. Walmart’s goal is to offer better value while controlling the rising costs of beef.
Walmart cuts out middlemen with first-ever beef facility as prices for beef and veal climb sharply. According to the U.S. Department of Agriculture, beef prices rose 8.6% compared to last year. Projections suggest a further 6.8% increase in prices throughout this year due to tight supplies and strong consumer demand.
The new facility packages Angus beef sourced directly from Sustainable Beef LLC, a company Walmart invested in back in 2022. Sustainable Beef sources cattle within a 250-mile radius to maintain freshness and strengthen local supply chains.
Experts say Walmart’s move to cut out middlemen with first-ever beef facility will improve quality and traceability. Arun Sundaram, a senior analyst at CFRA Research, noted that controlling sourcing and processing allows Walmart to manage costs and enhance supply chain resilience.
This strategy helps Walmart offer competitive pricing at a time when many consumers now switch to less expensive proteins like chicken. The facility marks Walmart’s first fully owned as well as operated case-ready beef operation.
Walmart cuts out middlemen with first-ever beef facility, showing its commitment to innovation in food supply. The retailer continues to adapt as food prices rise nationwide. This new plant strengthens Walmart’s position in the beef market while helping customers during tough economic times.
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