Walmart announced recently that it will invest in Sustainable Beef LLC, the proposed $325 million beef processing facility in North Platte, Nebraska. In a statement, Walmart said it has signed an agreement to acquire a minority stake in the rancher-owned start up.
Walmart said its investment is part of a “broader strategic partnership to source top-quality Angus beef from Sustainable Beef.” Indeed, this is not Walmart’s first venture with producers to provide beef for its retail stores. Three years ago, they announced a partnership with 44 Farms (the largest beef producer of black Angus in Texas) to source high-quality Angus beef for about 500 of its stores in the Southeast. At the time, Walmart’s senior vice president of meat wrote in a blog post that the company is on a mission to make the beef America eats better. "Customers want freshness and affordability, but they also want to know where their food comes from. By sourcing beef directly from farmers and ranchers, Walmart is aiming to change the dynamics of the beef industry”.
The most recent announcement sends Walmart further down that path of sustainable beef, Walmart says the partnership helps supplement the current beef industry and provides additional opportunities for ranchers to increase their business. As part of the investment, Walmart will also have representation on Sustainable Beef’s board.
Sustainable Beef’s plans are to process 400,000 head per year (about 1,500 head per day), 100,000 of which will be cows. The plant would employ 875 workers and is expected to generate another 1,000 jobs in supporting businesses. Groundbreaking is scheduled for this month, with the facility opening in late 2024.
In March, North Platte’s Community Redevelopment Authority (CRA) unanimously approved a contract with Sustainable Beef, opening the door for tax increment financing for the infrastructure for the new plant.
Sustainable Beef LLC will work with cattle feeders and ranchers to understand critical elements of the supply chain cycle, such as grain sourcing and grazing management. Animal care will follow the Five Freedoms, and there will be a consistent approach to antibiotic use and reporting across herds in line with Walmart's Position on Antibiotics in Animals, which asks suppliers to adopt and implement American Veterinary Medical Association Judicious Use Principles of Antimicrobials. All of these components will help Sustainable Beef LLC to improve and refine the beef supply chain to provide quality beef for customers.
Editor’s Take:
This is good news for consumers, beef producers, the packing company Sustainable Beef LLC and Walmart. Consumers should have a steady supply of high-quality beef at reasonable prices. Beef producers will have a solid, steady market for their beef. Sustainable Beef LLC will have a consistent stream of cattle for their slaughter plant that will allow them to work successfully with a company the size and scope of Walmart. And Walmart will have a consistently high-quality product to offer their customers. Thus, the circle is complete and everyone receives what they desire. This plant and arrangement will also provide a more stable floor under the beef market across the U.S. If you have beef producers in your area, make sure you reach out to them today and encourage them to look for your inventory on AgTruckTrader.com. Invite them to your dealership to see your inventory of new and used trucks and SUV’s, to check out your service and parts departments, and to sign up for the AgTruckTrader.com National ‘Arc & Spark’ Sweepstakes for a chance to win the Vanair prizes!
