As Americans prepare to fire up their backyard grills for the Fourth of July holiday, many are feeling sticker shock from rising beef prices. The American Farm Bureau Federation reports ground beef prices are retailing for $6.67 a pound, the highest level since 2013.
According to previous reports by Straight Arrow News, U.S. cattle inventories are currently at their lowest level in over 70 years. This decline is contributing to the rising cost of beef and steak.
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How is Walmart taking control of the process?
Now, Walmart is taking matters into its own hands. The retail giant has opened its first owned and operated case-ready beef facility. It is located just south of Kansas City in Olathe, Kansas.
Workers at the 300,000-square-foot facility will package and distribute meat brought in from Sustainable Beef LLC. Employees will then ship the meat to 600 stores across the Midwest, cutting out the middleman. Sustainable Beef uses cattle within a 250-mile radius.
“The opening of our new facility in Olathe, Kansas, is centered on delivering more of what our customers want — affordable food and quality they can trust. 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, Walmart executive vice president, said in a release.
The move gives Walmart greater control over its Angus beef supply chain, from processing to packaging. The facility will cut and package fresh beef for distribution and sale.
Other benefits
Walmart officials told Fox Business that this level of control will enhance quality and traceability. Additionally, it will help reduce costs for customers. The company believes having its own meat producer will enhance its efforts and ensure fresh food is readily available.
Arun Sundaram, senior vice president and equity analyst at CFRA Research, told Fox Business, “While Walmart has long been known for lower prices, it has recently placed more emphasis on quality, particularly in fresh categories like produce and protein.“ He added that, “fresh quality perception is often the top factor influencing where consumers choose to shop.”
Walmart announced that its new facility is already spurring growth in Kansas, creating 600 jobs. This initiative is part of a larger commitment to invest $350 billion in American-made products by 2031.
