Walmart Looks to Tighten its Grip on the Beef Supply Chain
October 16, 2025 | 1 min to read
Kansas rancher Mike Schultz warns that local producers face “velvet handcuffs” as retail giant Walmart and Brazilian-based JBS expand in the U.S. beef market; Walmart’s new Olathe, Kansas processing plant signals a shift in industry power that could reshape pricing dynamics—initially helping Kansas ranchers as Walmart bids against major packers—while raising concerns among agricultural advocates about the long-term health of the nation’s cattle sector.
Ranchers and agricultural advocates warn the nation’s cattle industry is in dire straits as Walmart and Brazilian-based JBS expand in US market.
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.
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