Walmart Enhances Angus Beef Production by Establishing a New Production Facility
Walmart, the world's largest retailer, is making significant strides in the beef industry with its end-to-end supply chain strategy for Angus beef. The strategy, focused on transparency, efficiency, resilience, and local sourcing, has led to the opening of Walmart's first fully owned and operated case-ready beef facility in Olathe, Kansas.
The 300,000+ square-foot facility, a state-of-the-art plant, packages and distributes Angus beef cuts sourced specifically from Sustainable Beef LLC. This strategic partnership, established in 2022, allows Walmart to control more stages of the beef supply chain, from sourcing to packaging to distribution.
The facility's location in Olathe is crucial as it will supply Angus beef to Walmart stores primarily in the Midwest region. This vertical integration ensures more consistency, transparency, and value for customers, aligning with Walmart's goal of delivering quality beef at affordable prices.
The Olathe facility is expected to create over 600 new jobs, directly impacting the local community economically. Furthermore, this investment supports Walmart’s commitment to a $350 billion investment in U.S.-made products by 2031.
The facility's opening also strengthens supply chain resilience against disruptions by controlling more of the beef processing stages. This control allows Walmart to offer differentiated Angus beef products with various price points, increasing consumer choice and satisfaction.
Walmart's commitment to quality and local sourcing is evident in its strategy to source Angus cattle within a 250-mile radius. This approach ensures freshness and promotes supply chain transparency and trust in product quality for consumers.
In recognition of its efforts in the food and consumables sector, Walmart has been ranked as the No. 1 retailer in North America by Progressive Grocer. The company, headquartered in Bentonville, Arkansas, serves approximately 270 million customers and members each week and reported a revenue of $681 billion in FY2025.
The Olathe facility is pivotal in Walmart’s broader vision to fully control its Angus beef supply chain, ensuring quality, local sourcing, and operational efficiency that benefits consumers and communities alike. Kansas Governor Laura Kelly acknowledged Walmart's investment in Olathe as further driving Kansas' success in the agriculture industry.
In addition to the Olathe facility, Walmart U.S. has also implemented a new technology suite for its associates, including task management and real-time translation, to enhance operational efficiency and customer service.
[1] Walmart Press Release. (2023). Walmart Opens First-Ever Owned and Operated Case-Ready Beef Facility in Olathe, Kansas. [Online]. Available: https://corporate.walmart.com/newsroom/2023/02/10/walmart-opens-first-ever-owned-and-operated-case-ready-beef-facility-in-olathe-kansas
[2] Walmart Press Release. (2023). Walmart Announces New Facility in Olathe, Kansas, to Process Angus Beef. [Online]. Available: https://corporate.walmart.com/newsroom/2023/02/10/walmart-announces-new-facility-in-olathe-kansas-to-process-angus-beef
[3] Walmart Press Release. (2023). Walmart Invests in Sustainable Beef LLC to Advance Sustainable Beef Production. [Online]. Available: https://corporate.walmart.com/newsroom/2022/09/21/walmart-invests-in-sustainable-beef-llc-to-advance-sustainable-beef-production
[4] Walmart Press Release. (2022). Walmart Announces $350 Billion Investment in U.S. Manufacturing. [Online]. Available: https://corporate.walmart.com/newsroom/2022/09/13/walmart-announces-350-billion-investment-in-u-s-manufacturing
[1] The Olathe facility, Walmart's first fully owned and operated case-ready beef facility, is a significant step towards controlling more stages of the beef supply chain, aligning with the retail giant's commitment to the industry.
[2] With the strategic partnership with Sustainable Beef LLC, Walmart is able to source Angus beef directly and distribute it to retail stores, particularly in the Midwest region, enhancing its business operations.
[3] Apart from the Angus beef supply chain, Walmart's investment in Sustainable Beef LLC also demonstrates its commitment to finance and support the food-and-drink sector, focusing on sustainability.
[4] By controlling more stages of the beef supply chain and investing in U.S.-made products, Walmart is not only addressing consumer demand for quality and locally sourced products but also contributing to the growth of the retail, lifestyle, and agriculture industries in the United States.
