Walmart acquires minority stake in Sustainable Beef

The investment will help Sustainable Beef, a rancher-owned producer of Angus beef, bolster its business by opening a new beef processing facility expected to break ground next month and slated to open in late 2024, creating more capacity for the US beef industry. Financial terms of the investment were not disclosed, but Walmart will have representation on Sustainable Beef’s board.

The investment is Walmart’s latest effort to take greater control of its beef supply chain and help eliminate some of the shortages and capacity constraints impacting the beef industry. In 2020, the retailer opened an Angus beef facility in Georgia supplying beef to Georgia, Alabama, and Florida. 

“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products,”​ said Tyler Lehr, senior vice president of merchandising for deli services, meat and seafood, Walmart US.

“We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner,” ​said David Briggs, CEO of Sustainable Beef.

Prices for food items have been on a continuous climb with beef as no exception registering a slight year-over-year price increase. According to the Bureau of Labor Statistics data​, the average price of all uncooked beef steaks per lb. was $9.71 in July 2022, up slightly from $9.67 in July 2021, and $8.70 in July 2020.

Source link

We will be happy to hear your thoughts

Leave a reply

Enable registration in settings - general
Shopping cart