Walmart to open US beef facility as Biden administration targets local supply chain transparency
16 Jun 2023 --- Walmart is revealing plans to build a new case-ready meat facility that supports its pledge to create an end-to-end Angus beef supply chain. The move comes after the Biden administration announced plans last year to establish stricter “Made in America” labeling rules to boost product transparency and encourage localized production, while also addressing the country’s “monopolized” meat industry.
The US retail giant’s facility is set to open in 2025 in Olathe, Kansas, and create more than 600 jobs. Construction is expected to begin later this year.
The company recognizes that the way its customers shop for food has evolved over the past few years, with more seeking greater transparency in the supply chain.
It will continue to work “hand in hand with its suppliers” to ensure it is delivering high-quality products, increasing transparency, resiliency and capacity through the supply process while meeting increased demand from its customers.
Future-proofing
Under current US labeling rules, meat can be labeled “Product of USA” if it is processed in the country, including when it is raised overseas and then processed into cuts of meat in the US. But the US Department of Agriculture (USDA) is currently conducting a review to clarify “Product of USA” standards.
Walmart’s new facility is expected to open in 2025 and create more than 600 jobs for the Olathe community in Kansas.
Walmart first announced plans to create an end-to-end supply chain for Angus beef in 2019, with the goal of providing more options for customers seeking higher-quality meat. Since then, it implemented strategies to ensure customers can purchase beef with last year’s equity investment in Sustainable Beef.
The new facility in Kansas will package and distribute a selection of Angus cuts from Sustainable Beef in North Platte, Nebraska, to serve Walmart stores across the Midwest.
“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,” says Kansas Governor Laura Kelly.
Corporate crackdown
The US government strengthened its crackdown on corporate leaders in the meat sector with a US$375 million cash injection last year. In the first round of investments, authorities put US$73 million on the table for 21 meat and poultry processing expansion program grant projects designed to help local producers compete with a handful of production giants.
The USDA wants more local supply chains that produce nutritious and affordable products for consumers.
“The USDA and Biden-Harris administration’s goal is to combat market dominance and help producers and consumers gain more power in the marketplace by creating more and better local market options,” a USDA spokesperson told Food Ingredients First.
“We believe a shortened supply chain from farm to fork is a win-win for producers and consumers and will help create a more resilient food supply chain and a fairer food system that makes nutritious food more accessible and affordable for consumers.”
Earlier this year, Walmart, Cargill, Mars, Costco, World Wildlife Fund and Finance Earth jointly launched an “innovative concept” to finance the transition to more sustainable fisheries worldwide. The goal is to catalyze more than US$100 million in investment in fisheries improvement by 2030.
By Joshua Poole
