By Micah Maidenberg

Walmart Inc. is testing a new strategy for its beef purchases by developing its own supply chain for Angus beef products, a move the company says will give customers more visibility into where their food comes from.

The retail giant said Wednesday it would source cattle from family farms and ranches and formed agreements with firms to butcher cows, package meat and have products delivered to stores.

The company's partners include Bob McClaren, of 44 Farms and Prime Pursuits, who will help Walmart find cattle, and Creekstone Farms, which will hire 250 people to butcher the cows at a facility in Kansas.

The effort will focus on Angus cuts, including steaks and roasts. Products from this supply chain will debut at 500 Walmart stores in the Southeast, including Georgia and Alabama.

"As clean labels, traceability and transparency become more and more important to customers, we've made plans to enter into the beef industry creating an unmatched system that allows us to deliver consistent quality and value," Scott Neal, a Walmart senior vice president, said in prepared remarks.

Bentonville, Ark.-based Walmart said that by developing the supply chain, it will create steady demand for ranchers and feed yards.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

April 24, 2019 12:11 ET (16:11 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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