Released: March 01, 2002

K-State Cattlemen’s Day: Wal-Mart VP Says Company Welcomes Alliances with Producers

MANHATTAN, Kan. – Spurred by the rapid growth of its Supercenter stores, Wal-Mart has established itself as one of the nation’s leading retailers of fresh meats, a fact that the company’s vice president said represents an opportunity for U.S. livestock producers.

Ken Parnell told a gathering at the annual Kansas State University Cattlemen’s Day Friday that the retail giant wants to develop alliances with suppliers, including producers. He said even though the company is growing rapidly around the world, Wal-Mart’s philosophy is to offer local items in local stores to fit the needs of local customers.

"It’s not difficult to get a food item into a Wal-Mart store, if that item serves a local need," Parnell said.

As an example, Parnell said some stores offer barbecue sauce that is popular in a certain region, or produced by a local – perhaps small – company. Also, Wal-Mart often buys poultry products on contract.

Like their counterparts in the poultry industry, Parnell said cow-calf producers, feedlot operators and others on the beef side "can all make money" by producing local products, including value-added items.

Wal-Mart, which reported annual sales of $218 billion last year, currently has 1,121 stores worldwide which offer retail food products. The company is projecting 1,500 Supercenters worldwide by the year 2005, and 180 of the new super stores this year – which is an average of one new store every other day.

That kind of growth – and Wal-Mart’s commitment to offering case-ready meats – means the company will continue looking for new partners to supply fresh, quality products, Parnell said.

"If you produce a high-quality, high-yielding product, then you should be paid fairly for that product," he said. "That’s what we’re trying to do."

The company is also taking food safety seriously. Among the steps it is taking to assure safety of meat products are:

* Encouraging federal inspection in all of its food production centers.

* Having a complex tracking system to identify suspect products quickly.

* Adhering to strict time and temperature disciplines.

Every Wal-Mart Supercenter currently offers case-ready meats, Parnell said. Four years ago, the store introduced its first beef products (ground beef). The company also currently offers pork and poultry in its Supercenter stores.

Parnell said Wal-Mart Inc., which also operates Sam’s Clubs around the country, is now moving toward a new business venture that it is calling the Wal-Mart "Neighborhood Market." The new stores will offer fewer items, but include such conveniences as drive-thru shopping and easy access to specialty items. Some Supercenter stores already offer such value-added meat items as "combo packs" and kabobs, Parnell said.

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K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Pat Melgares, News Coordinator
pmelgare@oznet.ksu.edu
K-State Research& Extension News