Walmart boosts its Angus beef supply through construction of a new production facility.
Walmart Opens First Owned Beef Processing Plant in Olathe, Kansas
Walmart has made a significant stride in its mission to create a more resilient, transparent, and efficient supply chain for Angus beef. The retail giant has opened its first-ever owned and operated beef processing facility in Olathe, Kansas. Spanning over 300,000 square feet, this state-of-the-art plant will process fresh Angus beef into retail case-ready cuts [1][2].
John Laney, Executive Vice President of Food at Walmart U.S., expressed that the move is aimed at delivering affordable food and quality that customers can trust. Through this integration, Walmart aims to cut out middlemen, reducing costs by up to 15% per pound, stabilizing supply amidst rising beef prices and cattle shortages, and improving quality and consistency for customers [1][2].
The facility sources cattle from within a 250-mile radius, ensuring local sourcing and better oversight, which enhances transparency and product traceability [1][4]. This end-to-end control allows Walmart to provide more affordable beef options with consistent quality, meeting growing demand at its 600 Midwest stores and supporting Walmart's broader fresh food and premium Angus beef initiatives [1][2][4].
The Kansas beef facility is expected to create over 600 jobs in Olathe and surrounding areas, contributing to local economic growth and boosting work opportunities for local suppliers and service providers [2]. On the distribution side, the plant processes approximately 215,000 pounds of beef daily (about 55 million pounds annually), facilitating efficient delivery of case-ready Angus beef directly to Walmart stores across the Midwest [2].
This enhanced supply chain control is part of Walmart’s commitment to supporting U.S.-based manufacturing and sustainability goals, with a targeted $350 billion investment in U.S.-made, grown, or assembled products by 2031 [2][3]. The facility's opening is a critical part of Walmart’s strategy to build an end-to-end supply chain for Angus beef [1][3].
Kansas Governor Laura Kelly expressed that Walmart's investment in Olathe is further driving the state's success in the agriculture industry. With this move, Walmart U.S. continues to lead the pack in the food and consumables retail sector, being ranked No. 1 on Progressive Grocer’s 2025 list of the top retailers in North America [5].
References:
- Walmart press release
- Supermarket News
- Meatingplace
- Meat + Poultry
- Progressive Grocer
- This move by Walmart to open its own beef processing plant in Olathe, Kansas, represents a strategic investment in the food-and-drink industry, aiming to create a more efficient supply chain for fresh Angus beef.
- By operating its own beef processing facility, Walmart seeks to transform its business model, reducing reliance on middlemen, lowering costs, and ensuring a stable supply amidst industry fluctuations such as increasing beef prices and cattle shortages.
- The integration of this new supply chain component is not only expected to bolster the retail giant's position within the retail industry but also contribute to local economic growth, creating over 600 jobs in the Olathe area and fostering relationships with local suppliers and service providers.
