The Walmart’s Kansas Cow Meat facility aims to combat the high prices of meat and supply

Walmart opened her first ownership Cow meat facility ready for cases In Kansas, the broker abolishes its supply chain to help control costs and ensure adequate supply with the continued high prices of cow meat.

The newly inaugurated facility, which has an area of ​​300,000 square feet, will operate to the latest model in Olathe, and the distribution of Angus discounts that are obtained directly from the sustainable Beef LLC to 600 stores in the Middle West region, which Walmart says will increase transparency and ability in the beef supply chain to help retail stores on customers’ request. This immediately reduces the retail seller’s need to rely on an external party to reduce and beams of beef, which may lead to high costs that can be transferred to consumers.

“This is the first ready -made facility for the fully owned cases and managed by Walmart, and this teacher guarantees that we are able to achieve more consistency, more transparency and the value of our customers,” John Lani, CEO of Wall Mart said in a statement.

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Walmart investigated the stocks at Nebraska Beef LLC in 2022 as part of its efforts to implement the comprehensive supply chain of Angus Beef. Sustainable cow meat sources from a radius of 250 miles to the factory.

“By controlling larger sources in sources and treatment, it can improve quality, enhance tracking, and enhance its supply chain, which is essential in the American beef industry,” Aaron Sondaram, Senior Vice President and stock analyst at CFRA Research told Fox Business.

However, “this step should also help reduce costs, allowing Walmart to apply More competitive prices At a time when the prices of cow meat rise and many consumers are trading to proteins such as chicken.

In May, the prices of cow meat and loads increased 8.6 % compared to the past year, according to the Ministry of Agriculture (US Department of Agriculture). The US Department of Agriculture offers that the prices of beef and Hammoud will continue to increase throughout the year, an increase of 6.8 %, due to narrow supplies and the continued demand for the consumer.

Companies may have to pass high cow meat prices for consumers

Burnet Nelson, an economist at the American Farm Office Corporation, said in May that strong demand “means high prices for wholesale, which means high livestock prices in feeding, and even new calves.” At the same time, livestock supply is currently at its lowest level in 74 years. Both workers are responsible for the rise in costs, according to Nelson.

However, Sundaram added that the Walmart move also corresponds to its broader efforts to improve its visualization of fresh food.

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WMT	Walmart Inc.	97.27	+1.25	+1.30 %

He said: “While Walmart has long been known for the low prices, it has been recently focused on quality, especially in new categories such as products and protein,” which confirms that “the new perception of quality is often the highest factor that affects the place where consumers choose shopping.”

While Sondaram said he believes that the Arkansas retail giant is a leader in the market in the market, and he indicated that “there is still space for the development of participation, especially among higher income families” based on the data that shoppers are still visiting four to four to four Five different grocery stores per month.