Walmart Looks To Tighten Its Grip On The Beef Supply Chain

To Mike Schultz, Kansas ranchers are stuck in velvet handcuffs.

Walmart, the nation’s largest grocery retailer and private employer, recently expanded into the U.S. beef industry with its own processing plant in Olathe, Kansas, a suburb of Kansas City. The opening of the Walmart-owned plant in July marked a turning point for the company and the nation’s cattle industry.

Schultz, a cattle rancher in Brewster, Kansas — a state that accounts for roughly 4% of the nation’s cattle supply — said for now, local ranchers are likely to have better prices with Walmart bidding against other beef giants.

But Walmart is known for cheap prices, and Schultz believes the Arkansas-based retailer will soon look to drive down the price it pays for cattle.

“If you want a race to the bottom to produce chea