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Walmart Plans Third Milk Processing Facility in Texas to Boost Local Dairy Industry

In a bid to elevate its dairy offerings, retail giant Walmart has set its sights on Texas dairy farmers for support in its latest venture.

On March 7th, Walmart announced its intentions to establish its third milk processing facility in Robinson, Texas, just south of Waco. This move follows a similar strategy employed by competitor H-E-B, which disclosed plans late last year to expand its milk processing facility in San Antonio as part of an initiative to enhance its brand products, including H-E-B Mootopia, H-E-B Organics, and lactose-free dairy products.

Walmart aims to enhance its own brand presence in the dairy market. The new facility, as per a Walmart news release, will be tasked with processing and bottling various milk options under Walmart’s Great Value and Sam’s Club’s Member’s Mark brands.

However, H-E-B is anticipated to lead the charge, with its San Antonio facility expansion slated for completion by this summer, whereas Walmart’s facility is expected to commence operations in 2026.

Once operational, Walmart’s facility intends to distribute its milk products to over 750 Walmart stores and Sam’s Clubs across the South, encompassing regions in Texas, Arkansas, Louisiana, Mississippi, and Oklahoma.

Prior to venturing into Texas, Walmart established its inaugural milk processing facility in Fort Wayne, Indiana, in 2018. Another facility is set to open in Valdosta, Georgia, by 2025.

Highlighting the local sourcing aspect, Walmart underscores its commitment to transparency regarding product origins. Bruce Heckman, vice president of manufacturing at Walmart, expressed enthusiasm, stating, “We’re excited to be able to provide Texas and its surrounding states with high-quality milk sourced primarily from Texas dairy farmers.”

Walmart’s endeavor is also hailed by Governor Greg Abbott for its potential economic benefits. Abbott emphasized that the facility will generate approximately 400 new job opportunities for the local community, situated just 7 miles south of downtown Waco.

“Walmart’s new processing facility in Robinson is exciting news for Texas, creating millions in investment for the local economy and hundreds of new, good-paying jobs for hardworking Texans in Central Texas,” said Abbott in a release.

The announcement of these large-scale milk processing facilities coincides with a period of declining dairy milk consumption. Some dairy farmers, including those in Texas, are exploring innovative approaches to rekindle interest, such as introducing Dr. Pepper-flavored eggnog.