Walmart to invest $350 million in milk processing plant in Texas

Walmart announced Thursday (March 7) plans to build and operate a milk processing plant in Robinson, Texas, a small community south of Waco. The $350 million facility will employ about 400 and support 750 of its stores and Sam’s Clubs in the southern region.

Walmart opened similar plants in Fort Wayne, Ind., in 2018 and in Valdosta, Ga., in 2023. The retail giant said operating the dairy plants and two beef processing facilities in Thomasville, Ga., and Olathe, Kan., provides increased transparency in the supply chain. The plants also allow Walmart to better control the quality of the commodity products, company officials have said.

Dairy farmers in the Waco area will provide the raw milk to the plant, which will process it into Great Value and Member’s Mark-branded bottled milk products. Walmart said other dairy products like ice cream, butter or yogurt will not be made at the plant.

“We’re excited to be able to provide Texas and its surrounding states with high-quality milk sourced primarily from Texas dairy farmers,” said Walmart Manufacturing Vice President Bruce Heckman.“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.”

Walmart broke ground on the plant this week and said the plant will be operational by 2026.

Walmart said the new facility will help it meet the growing demand from customers for milk while also providing transparency about where its products are sourced. Statista reports that North American consumers have listed several private-label items sold in Walmart stores. Out of the ten most popular food products sold by Walmart, milk sold with the brand Great Value was the most popular item, with 29.3% of all mentions.