Walmart, like other retailers, plans to build a $350 million milk processing plant in Georgia to better manage its supply chain and control consumer grocery costs is standing.
The Bentonville, Ark.-based discount chain, one of the largest U.S. retailers, announced Wednesday that it will build a dairy facility in Valdosta in the southern Peach State. The approximately 300,000 square foot plant is expected to create 400 jobs and is designed to supply milk throughout Georgia and neighboring states, serving more than 750 Walmart stores and Sam’s Clubs in the Southeast. providing.
walmart And another giant in its field, the Cincinnati-based grocery chain kroger, We control the sourcing, supply chain and production of our dairy products to keep prices down. The price of a gallon of milk, a staple for price-sensitive households, has become an unofficial barometer of inflation and rising grocery costs.
Kroger has been operating its own dairy plants for some time.Last year, his grocery store announced a $70 million investment. Updating a large dairy farm in Ohio This allows you to process fresh milk that does not require refrigeration. Meanwhile, Walmart is building milk processing facilities across the country to reduce its dependence on outside dairy manufacturers and suppliers.
Bruce Heckman, Walmart’s vice president of manufacturing, said in a statement that the company “continues to make strides to increase the certainty of supply of essential items to our customers.”
“We are looking forward to breaking ground on this exciting venture and will continue to work collaboratively with local dairy farmers and stakeholders as we move forward,” he said. We are able to process high-quality milk for our customers and provide them with everyday low prices that they can trust. ”
In the blog post, He and Tyler Lehr, Walmart’s senior vice president of merchandising, chilled, adult beverages and convenience, said the new plant will “strengthen our ability to meet the demand for high-quality milk and further expand our supply chain.” It will strengthen the economy and create a uniform supply system.” Greater transparency regarding procurement. ”
Walmart’s new facility, located on Inner Perimeter Road, will produce gallon, half-gallon, whole, 2%, 1% and skim milk for Walmart’s Great Value brand and Sam’s Club Member’s Mark brand. , produces raw milk products, including 1% chocolate milk. Walmart did not respond to Coster News’ email asking for the exact address of the planned factory.
The company opened its first milk processing facility in Fort Wayne, Indiana in 2018.
“We are excited that Walmart will soon be leveraging Georgia’s number one industry and opening up new opportunities for farmers in the Lowndes County area,” Georgia Governor Brian Kemp said in a statement.
The planned state-of-the-art facility “will not only bring jobs and opportunity to the Valdosta area, but it will also allow dairy farmers to produce more product from start to finish right here in Georgia, generating a greater share of retail dollars.” “Back to family farms and ensuring Georgia consumers have access to the freshest dairy products possible,” said State Department of Agriculture Secretary Tyler Harper.
According to the University of Georgia Agriculture Snapshot 2023, food and textile production and related industries contributed $73.2 billion to Georgia’s economy in 2021 and created more than 340,800 jobs. Georgia ranks as the top milk producing state in the Southeast in 2022, and the dairy industry contributes nearly $2.5 billion to Georgia’s economy, according to Georgia Milk Producers.
Complementing the state’s agriculture and food processing industries, Georgia has 178 million cubic feet of cold storage space. Georgia’s already central location in the southeastern United States provides logistics and infrastructure that allows businesses to move products in and out of the state quickly and efficiently, according to the governor’s office.
Senior Project Manager Elizabeth McLean represents the Georgia Department of Economic Development’s Global Commerce team on this project in collaboration with the Valdosta-Lounds County Development Authority, City of Valdosta, Georgia Department of Agriculture, Georgia Power, and Georgia Quick Start. did.