Wal-Mart goes for Choice grade

Monday, January 2, 2012

Wal-Mart Inc. has thrown a game changer into the beef industry by opting to carry Choice grade beef in its 3,800 U.S. stores. Previously the giant retailer was known for selling lean "select" beef that was also cheap. Now industry observers are speculating that Wal-Mart has taken a giant step away from its brand of providing consumers with cheap products.

And ironically, according to Drovers Cattle Network, just getting into the marketplace with so many stores has driven the price of Choice grade cattle even higher. Agricultural economist Ron Plain says the move will increase the value of better marbling British-bred cattle over Continental breeds. There could be changes right down to basic breeding herds.

More than half of Wal-Mart's $260 billion in U.S. sales last year were from groceries. BF