Market analyst expects minimal industry impact from Walmart’s beef supply chain
A livestock market analyst says Walmart’s new venture of having its own beef supply chain should have little to no impact on other commercial beef processors.
Cassie Fish tells Brownfield Walmart is planning to run
100,000 head of cattle through their supply chain each year, which is less than
1% of US beef production.
She says Walmart is likely testing a niche market for millennials
who are interested in knowing where their food originates.
“It’s a natural Angus product with traceability, meaning they can tell you where the cattle came from.”
Plus, Fish says domestic
demand for beef has been significant in the past few years.
“It has just been none short of really spectacular. In 2019, we slaughtered over 300,000 more cattle than we did in 2018 and yet cut out value prices averaged above 2018, so we were able to move more product at a higher value.”
She says wholesale prices today are similar to a year ago indicating 2020 will continue to be a good year for beef demand.