Walmart Dairy Processing Expansion

Walmart Increasing Dairy Processing Capacity With New Texas Facility

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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Walmart announced plans Thursday to build a new milk processing facility in Robinson, Texas. The facility, which should open in 2026, will service as many as 750 Walmart stores with milk under the company's own brand label. (Photo courtesy of Walmart)

OMAHA (DTN) -- Walmart on Thursday announced the retailer will build a new $350 million milk processing facility in Robinson, Texas, expected to open in 2026 and provide fluid milk to roughly 750 Walmart stores in the region.

The retail giant in recent years has been expanding the vertical integration of both dairy and beef facilities in parts of the country to service its chain of stores.

Walmart stated the facility will produce milk products sourced largely from Texas dairy farmers. The dairy processing operation will create nearly 400 jobs in Robinson, which is adjacent to Waco, Texas.

"We're excited to be able to provide Texas and its surrounding states with high-quality milk sourced primarily from Texas dairy farmers," said Bruce Heckman, vice president of manufacturing at Walmart. "This new facility continues our commitment to building a more resilient and transparent supply chain and ensuring our customers' needs are met for this everyday staple."

The facility will be Walmart's third dairy processing operation, following a facility in Fort Wayne, Indiana, which opened in 2018, and Valdosta, Georgia, which is expected to open next year.

Walmart said the new facility will serve more than 750 Walmart and Sam's Club stores in Texas, Oklahoma, Louisiana and parts of Arkansas and Mississippi. The facility will process a range of fluid milk products under Walmart brands.

"The new facility will allow Walmart to meet the growing demand from customers for high-quality milk, while providing transparency about where its products are sourced and making the supply chain more resilient," the company stated.

Texas Gov. Greg Abbott also praised the investment in the state.

"World-renowned companies like Walmart continue to choose Texas because of our unmatched business climate, lower business operating costs, and highly skilled, diverse and growing workforce," Abbott said. "This major investment is a testament to the promise of economic success in Texas, and I thank Walmart for choosing McLennan County as the location for its important new facility."

Along with dairy processing, Walmart also has opened its first case-ready beef facility in Thomasville, Georgia, and the company announced last summer the construction of a second beef facility in Olathe, Kansas.

Also see "Walmart Taking Next Step to Develop End-to-End Supply Chain Strategy for Beef" here:

https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

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Chris Clayton