Walmart creates Angus beef supply chain, cutting out meat processors
Walmart Inc is taking control of the supply chain for Angus beef sold in some of its stores, cutting out meat processors as the company looks to offer higher quality products in an intensely competitive grocery industry.
The world’s largest retailer said on Wednesday that the move would allow it to ensure supplies of quality Angus beef and meet demands from customers who want to know the origin of their meat.
Normally, Walmart would buy Angus beef from companies like Tyson Foods Inc and Cargill Inc.
Walmart has now arranged to source cattle from Texas rancher Bob McClaren of Prime Pursuits and 44 Farms, who said the retailer will sell no-hormones-added Black Angus beef.
The cattle will be fed at a feedyard that specializes in avoiding hormones, slaughtered in Kansas and packaged in Georgia before the beef hits shelves in about 500 Walmart stores in the southeastern United States.
“Having visibility to the end-to-end process lets us know we are helping our customers bring a consistently great piece of meat to their table every time they buy with us,” Scott Neal, Walmart’s senior vice president of meat, said in a statement.
Tyson and Cargill said they supported Walmart’s project. Tyson shares slipped 0.9 percent, while Walmart shares rose 0.4 percent.
Walmart’s efforts to exert more control over its meat supply come after it switched to selling high-grade Angus beef in 2017.