As the nation‘s largest grocer, Walmart is many Americans‘ go-to destination for stocking up on household staples, especially affordable meat for the family dinner table. In 2022, Walmart captured over 26% market share of the $82.5 billion U.S. retail meat industry, generating more than $21 billion in meat sales across its 4,700 stores.
But behind those impressive numbers lies a complex global supply chain that raises questions for many discerning shoppers. Where exactly does all that Walmart meat come from? Are the animals raised humanely? Can I trust that it‘s fresh, safe, and high-quality? Is Walmart supporting American ranchers and farmers?
Walmart has faced its share of unflattering claims about its meat offerings over the years, from a 2018 report ranking it 67th out of 68 grocery chains for perceived quality to persistent rumors that it peddles meat shipped in from China. But the retail giant has been working hard to improve both the reality and perception around what‘s in its meat case.
To unpack the nuances of Walmart‘s evolving meat supply chain, we spoke to industry experts, analyzed economic data, and dug into the company‘s sourcing practices and quality control measures. What we found is an encouraging trajectory, albeit with room for ongoing progress. Let‘s dive in.
Walmart‘s Pivot to Vertical Integration
Traditionally, Walmart has sourced the bulk of its meat – around 80% of beef and even more of its pork, chicken, and other proteins – through major meat processors like Tyson Foods, Cargill, and JBS. These companies in turn buy from a network of independent farms and feedlots across the U.S. and the Americas.
But in recent years, Walmart has been shifting toward a more vertically integrated model, taking ownership of larger pieces of its meat supply chain. The retailer sent shockwaves through the industry in 2019 when it announced plans to develop its own end-to-end Angus beef supply chain, becoming the first grocer to do so.
This pivot is a savvy business move that promises to shore up quality and yields for Walmart. By cutting out the middleman and partnering directly with cattle ranchers, the company gains more control and traceability throughout the production process. Streamlined logistics also help ensure that meat arrives at the store fresher.
In 2020, Walmart opened a landmark case-ready beef plant in Thomasville, Georgia as the first step in this strategy. The $90 million facility, a joint venture with Texas rancher Bob McClaren called FPL Foods, is ramping up to process 1.2 million cattle per year. That‘s enough to supply 7-8% of Walmart‘s total U.S. beef when fully operational.
Walmart‘s beef initiative is part of a broader trend of food retailers vertically integrating to exert more quality control amid intensifying competition. Rival Costco now operates a 400,000 square foot chicken processing plant in Nebraska, while Kroger recently unveiled plans for its own dairy processing facility. As Walmart expands its meat empire, some analysts believe pork and poultry supply chains could be next.
Keeping It Close to Home
Vertical integration allows Walmart to source cattle mainly from a network of partner ranches across the Southeast, including Alabama, Florida, Georgia, and the Carolinas. In doing so, the company is making good on its commitment to double down on local and regional sourcing where possible.
Buying from nearby farms isn‘t just good for Walmart‘s bottom line in terms of minimizing transport costs. It also supports rural economies, keeps jobs in the U.S., and aligns with growing consumer interest in homegrown food. Walmart now sources over 90% of its beef and more than 95% of its poultry from the United States, with virtually none coming from China.
Even before the Georgia beef plant, Walmart was already deeply committed to U.S. meat sourcing. The company is the country‘s largest buyer of domestic beef and works with a network of 800+ cattle suppliers across 30 states. It has similar sourcing footprints for pork, chicken, and eggs.
"Our customers tell us they want to know where their food comes from," said Tyler Lehr, Senior Vice President of Protein for Walmart U.S. "This move will allow us to cut out the middleman and deliver high-quality, locally raised beef to our shoppers."
Of course, "local" is a relative term for a retailer with Walmart‘s national scale and sales volume. The company still sources some meat from neighboring countries to supplement U.S. supplies, especially in winter months. Around 8% of Walmart‘s beef comes from Canada and the remaining 1-2% from Australia, New Zealand, and Mexico. For other proteins, a small percentage originates from Canada, Mexico, and Latin American nations like Brazil and Chile.
Ensuring Freshness and Safety
Offering a consistently fresh, high-quality meat selection has been an ongoing challenge and priority for Walmart. In a 2018 report by Consumer Reports, the retailer ranked a dismal 67th out of 68 national grocery chains in terms of perceived quality and freshness.
Since then, Walmart has implemented major initiatives to turn around both the reality and reputation of its meat department. The company follows rigorous protocols for temperature control and cold chain management to maintain peak freshness and shelf life. It also upholds strict global animal welfare and food safety standards with regular audits of supplier facilities.
Walmart is now the only national grocery chain to offer a 100% money-back freshness guarantee on its meat. Shoppers can return any unsatisfactory products for a full refund, no questions asked. According to a company spokesperson, fewer than 1 in every 10,000 meat packages is returned by customers.
The retailer has also expanded its selection of USDA Choice and Prime beef cuts, which are more stringently graded for quality than ungraded beef. As of 2023, over 70% of Walmart‘s beef falls into these premium categories. "When customers see that USDA Choice or Prime shield, they can feel confident they‘re getting some of the best beef available," said Lehr.
Walmart‘s efforts to elevate its meat quality appear to be resonating with shoppers and industry experts alike. In 2022, Newsweek named Walmart the #1 retailer for beef based on metrics like flavor, freshness, and texture. The company has also climbed back into the upper echelons of overall grocery store rankings.
Decoding Meat Labels and Certifications
For shoppers trying to make informed, values-aligned choices at the meat case, deciphering the myriad labels and certifications can be daunting. Animal welfare, environmental impact, and production methods are top of mind for many these days. Here‘s how some of Walmart‘s meat offerings stack up:
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Organic: Walmart carries a limited selection of USDA Certified Organic chicken, beef, and pork under its Great Value private label. These products come from animals raised on organic feed without antibiotics, added hormones, or GMOs. However, organic meats still only account for around 1% of Walmart‘s total meat sales.
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Grass-Fed: Walmart sources some of its beef from grass-fed cattle, especially for its Great Value Angus line. However, since the USDA withdrew its official grass-fed standard in 2016, this label doesn‘t guarantee the animals ate a 100% grass diet. The retailer says it‘s working on a stricter grass-fed verification program.
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No Antibiotics Ever: Most of Walmart‘s chicken is now raised without any antibiotics, a move the company made in 2019 amid growing concern about the spread of drug-resistant bacteria. It has also eliminated antibiotics "important to human medicine" in much of its beef and is urging pork suppliers to follow suit by 2023.
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Cage-Free: Walmart has committed to shifting toward 100% cage-free eggs in its U.S. supply chain by 2025. As of 2022, around 51% of shell eggs sold in Walmart stores come from cage-free hens, up from just 12% in 2016.
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Animal Welfare Certified: Walmart encourages its meat suppliers to pursue third-party animal welfare certifications, but it doesn‘t mandate or verify this. Some products may carry labels like Certified Humane or American Humane Certified, but these vary widely in standards and represent a minority of offerings.
Walmart‘s store-brand meat usually carries the most robust labeling for customers looking for specific attributes. When in doubt, concerned shoppers can look for trusted certifications from independent organizations or ask a Walmart meat manager for more information about how products are sourced.
The Bottom Line
After taking a deep dive into Walmart‘s meat sourcing, a few key themes emerge. By and large, the company‘s meat does not come from far-flung locales like China, but rather from U.S. farms and a handful of other approved countries. Vertical integration is transforming Walmart‘s beef supply chain, a model that could soon extend to pork and chicken.
Shoppers can feel reasonably confident in the safety and quality of Walmart‘s meat offerings, thanks to the company‘s cold chain discipline, animal welfare commitments, and premium grading initiative. However, those looking for hard-to-find attributes like 100% grass-fed or organic may have fewer options.
As America‘s biggest food seller, Walmart‘s meat supply chain practices have major upstream and downstream implications. By partnering strategically with U.S. ranchers, investing in processing plants, and tightening quality specifications, Walmart can drive higher standards across the industry. Continued progress on sustainability and animal welfare will be key to satisfying evolving consumer demands.
Walmart still has work to do to achieve an ideal balance between affordability, quality, and responsible sourcing. But for shoppers on a budget seeking safe, fresh meat for their weeknight dinners, Walmart‘s current direction looks promising. With domestic suppliers, high-tech facilities, and an unmatched scale and reach, the retailer is positioned to bring more value to meat-lovers nationwide while supporting American agriculture for years to come.
