US major retailer Walmart is set to invest in a new beef-packing plant in Kansas, which will become operational in 2025.
The investment is set to create more than 600 jobs in Olathe in the midwestern US at Walmart’s first owned and operated case-ready beef facility. The figure for the investment reportedly stands at circa $257m, according to US farming industry publication AgWeb.
The retail giant announced plans to create an end-to-end Angus beef supply chain in 2019 to create a “steady demand for ranchers and feed yards offering stability in the marketplace”.
The facility will package and distribute cuts of the higher-grade Angus beef from Sustainable Beef, a rancher-owned company based in Nebraska. Walmart acquired a minority stake in the ranch-based beef processing plant last August, which is expected to be functional in late 2024.
“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,” said Kansas governor Laura Kelly.
David Baskin, senior vice president of deli, meat and seafood at Walmart, and Bruce Heckman, vice president of manufacturing and private brands, wrote in a statement: “At Walmart enhancing quality is integral to how we innovate.
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By GlobalData“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.”
Just Food has approached Walmart for further details about the new facility’s production capacity.
With fiscal year 2023 revenue of $611bn, Walmart employs approximately 2.3 million staff worldwide. The retail giant reported an operating income of $20.43bn, down from $25.94bn the previous year.
In the opening quarter of its FY2024, the group marked a jump in consolidated revenue of 7.6%, reaching $152.3bn. Operating income reached $5bn, marking an 11.7% year-on-year rise.
