Walmart enters the food production business

In the US, Walmart has just opened its first milk processing operation — will Australian grocers follow suit and become food manufacturers too?

Sourcing milk from nearly 30 dairy farms in Indiana and Michigan, the milk processing plant will produce Walmart’s private label Great Value white and chocolate milk which will be distributed to around 500 Walmart stores in Indiana, Illinois, Michigan, Ohio and Kentucky.

When fully operational, the plant will be the largest ‘drinking milk’ facility in the US, employing 200 workers plus another 100 third-party contractors to drive trucks.

Tony Airoso, Senior Vice President of Sourcing Strategy for Walmart said about the company’s first entry into food production, “This new plant is a perfect example of the kinds of efficiencies Walmart seeks in our supply chain to benefit our customers.”