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Economist: Walmart’s beef announcement is part of an industry trend

Walmart’s announcement that it’s setting up its own Angus beef supply chain is raising some eyebrows in the industry.

But Iowa State University livestock economist Lee Schulz sees it as the continuation of a trend that was already underway.

“We’ve seen major structural shifts over the last 15 years in meat packing, processing and retailing and that’s going to continue,” Schulz says. “This is just another signal of where the industry may be headed as far as being able to deliver products that are highly demanded by consumers and getting that consistent product from producers.”

Cattle will be sourced from 44 Farms, a Texas-based Angus seedstock operation. They will be finished at Mc6 Cattle Feeders outside of Hereford, Texas, then processed by Creekstone Farms in Arkansas City, Kansas. Packaging will be done in Augusta, Georgia by FPL Foods.

Walmart will market the all-natural, no-hormones added Black Angus beef at 500 stores across the southern U.S.

Most of its beef is currently sourced from Cargill and Tyson Foods.