Walmart Inc. (NYSE:WMT) saw its stock ease slightly on Tuesday as the retailer marked a major expansion of its dairy operations with a new milk processing facility in Georgia.
The move deepens Walmart's effort to control more of its grocery supply chain and offer shoppers dependable pricing.
The company opened its second self-operated dairy plant in Valdosta, where the facility will support more than 400 jobs and strengthen regional access to lower-cost milk.
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Expanding Walmart's Supply Chain Reach
Walmart unveiled the plant as part of its broader plan to build a streamlined dairy network.
The Valdosta site spans more than 300,000 square feet and reflects a $350 million investment that supports the company's long-term sourcing strategy.
The facility will package several milk varieties for Walmart's Great Value brand and Sam's Club's Member's Mark line.
More than 650 stores across the Southeast will receive milk from the new operation.
This gives Walmart tighter control over production and distribution as it works to deliver consistent quality and pricing. Local dairy farmers will supply the plant, which increases transparency and supply chain resilience.
"This new facility has innovation at its core," said Bruce Heckman, vice president of manufacturing for Walmart U.S. "It will bolster our capacity to meet the demand for high-quality milk, make our supply chain more resilient, and build even greater transparency around sourcing. We’re excited about what this means for Walmart customers, regional farmers, and the Valdosta community."
Investing in U.S. Manufacturing
The project builds on Walmart's earlier investments in domestic production, which include its first dairy plant in Indiana and two case-ready beef facilities in Georgia and Kansas.
These steps support Walmart's pledge to direct $350 billion into American-made products by 2031.
The company notes that most of its yearly merchandise spending supports U.S.-sourced goods.
Walmart marked the opening by awarding grants to local groups, including $5,000 for Greater Valdosta United Way and $8,000 for Valdosta High School's Marching Cats.
During fiscal 2024, the company and its foundation donated $56 million to organizations across the state.
WMT Price Action: Walmart shares were down 0.19% at $111.32 at the time of publication on Tuesday. The stock is trading near its 52-week high of $111.75, according to Benzinga Pro data.
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