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Walmart to Invest in Beef Packing Plant--Prospects for Eggs?

06/20/2023

Walmart will invest $250 million in a beef-packing plant in Olathe, KS with a projected completion date of 2025.  The plant will be operated by Sustainable Beef LLC., with Walmart having a minority interest.

 

This move backwards into the chain of supply parallels the Costco involvement in Lincoln Premium Poultry that produces rotisserie chicken for about half of Costco warehouses.

 

Given the fluctuation in wholesale price for eggs, it is possible that one or other chain may establish an equity arrangement with an existing producer to secure supply displacing cost-plus arrangements that allow adjustment according to the price of feed.