Walmart is betting big on another milk factory it plans to build in Georgia. The Valdosta operation will be the second facility owned by the retail giant, following a similar operation in Fort Wayne, Indiana, in 2018.
“Walmart is committed to providing high-quality milk to meet the growing demands of our customers. Today, we are furthering that commitment with the opening of our owned and operated milk processing facility in Valdosta. We are excited to share this with you,” Bruce Heckman, Walmart’s vice president of private label manufacturing, said in a statement.
The company said it will create 400 new jobs at the plant, which is expected to break ground later this year and open in 2025, and will process milk purchased from local dairy farms. Average wages at the plant will be $30 an hour, local officials said.
Adam Bradley, Walmart’s senior director of business development, said the plant will be a Class 1 fluid milk facility that will process product for 750 Walmart and Sam’s Club stores in the southeastern United States. Products leaving the factory include gallons, half gallons, and full gallons of 2%, 1%, skim, and 1% chocolate milk labeled Great Value at Walmart and Member’s Mark at Sam’s Club.
Scott Benedict, an affiliate partner at retail consultancy McMillan Doolittle, said it makes sense for Walmart to move closer to processing high-volume, low-margin foods such as dairy products.
“This is a way for Walmart to understand every step of processing, including the supply chain, to ensure the highest quality possible while also looking for ways to reduce costs to continue offering low prices to our customer base. ,” Benedict said.
He said Walmart is not the only retailer to step into food production and processing. So is Costco, and so is Kroger, where he operates 19 company-owned dairy plants that process milk, ice cream, cheese and other dairy products.
Georgia Milk Producers reports there are 89 dairy farms in the state. Walmart has not yet said how many farms it will hire to supply the plant. Georgia farms produced 235 million gallons of milk last year, according to dairy industry groups. He already has two other commercial milk processing plants in the state.
Walmart also operates a case-capable beef facility in Thomasville, Georgia, and is building a second case-capable facility for beef processing in Olathe, Kansas. Walmart said it also has equity investments and long-term commercial agreements with rancher-owned companies Sustainable Beef LLC and vertical farming company Plenty.