Walmart is now reporting its new venture into the U.S. beef sector by creating an end-to-end supply chain of Angus beef using blockchain technology. This new endeavor provides higher quality beef to consumers. It also provides Walmart a competitive edge in the grocery industry.
Walmart states numerous farmers provide the company with a variety of Angus beef sources. In turn, this leads to higher availability of beef cuts like steaks and roasts for consumers in 500 Walmart stores.
“As clean labels, traceability and transparency become more and more important to customers, we’ve made plans to enter into the beef industry,” said Scott Neal, senior vice president, meat, Walmart U.S.
Walmart blockchain supply chain improvements follow their decision to sell high-quality Angus beef. Presently, Tyson Foods and Cargill Incare are the major suppliers of Walmart’s Angus beef products.
The demand for Angus beef- whose marbled, tender cuts have become famous for their quality- has been particularly stable. In last year, Angus beef sales hit a record 1.21 billion pounds, according to Certified Angus Beef LLC.
Additionally, with a growing economy improving the living standards of Americans, customers prefer beef to less-expensive meat products like chicken and pork. Likewise, the quality of American-based beef has improved since customers now prefer beef with a higher fat content and marbling. Currently. Even fast-food supermarkets like McDonald’s, Burger King and Carl’s Jr. are selling Angus burgers.
Retailers are increasingly taking control of the production of the food they sell to handle the demand in a market where customers’ tastes change rapidly. It is hoped that the blockchain platform will increase food production and access of quality meat to more consumers.
Furthermore, the meat aisle has emerged a primary aspect in Walmart’s plan to enhance its grocery business. Walmart’s grocery activities comprise the largest source of income for the company. This blockchain technology development is key to producing a buffer against meat product rivals Amazon and Aldi.