By Tyler Durden
Covid sparked beef and pork shortages, leaving shelves at Walmart stores bare throughout the United States. Government-forced shutdowns and Covid outbreaks forced dozens of meatpackers across the US to shut down, reducing meat supplies reaching Walmart and other retailers. To safeguard against future supply disruptions, Walmart is bolstering its supply chain by building its own meatpacking facility in America’s Heartland.
“Today, we’re excited to share how Walmart is furthering that commitment by announcing plans for our first owned and operated case-ready beef facility, opening in 2025,” a Walmart press release read.
The new facility will be constructed later this year in Olathe, Kansas, about 25 miles southwest of Kansas City. It’s “an important milestone for Walmart as we continue to build a more resilient supply chain and identify ways to increase access to high-quality Angus beef for our customers,” America’s largest retailer said.
According to Bloomberg, Walmart’s move comes “as the Biden Administration pushes for more competition in the meat sector, where just four companies control about 85% of US beef-processing capacity.”
Once opened, the new meatpacking plant will package and distribute beef from Sustainable Beef LLC in North Platte, Nebraska, to serve stores across the Midwest.
Walmart wants to avoid severe supply-chain challenges faced during Covid years, which resulted in some stores running out of beef and pork products.
Even though 600 jobs will be created at the new facility in Olathe, we suspect the future of meatpacking plants will involve a great deal of automation.
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