Fortune reports that Costco is making plans to create its own chicken farm so it can produce one-third of all the chickens that it sells - including the 80 million rotisserie chickens that it sells annually.
According to the story, "Costco will slaughter about 1.7 million chickens a week, or 85 million a year ... The move is part of Costco’s plan to have more control over its own supply chain. The wholesaler would be able to determine the size and cut of the meat. At the same time, Costco has sought to move toward antibiotic-free and cage-free chickens." While Costco would own the facility in Dodge County, Nebraska, it would use a third party to actually operate it.
The story notes that Costco "has already made investments in the organic food space in the hopes of ensuring greater organic food supply in the future."
According to the story, "Costco will slaughter about 1.7 million chickens a week, or 85 million a year ... The move is part of Costco’s plan to have more control over its own supply chain. The wholesaler would be able to determine the size and cut of the meat. At the same time, Costco has sought to move toward antibiotic-free and cage-free chickens." While Costco would own the facility in Dodge County, Nebraska, it would use a third party to actually operate it.
The story notes that Costco "has already made investments in the organic food space in the hopes of ensuring greater organic food supply in the future."
- KC's View:
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I generally think that the more one can control one's own circumstances, the better. Control means being able to better differentiate, and differentiating is always the best way to succeed.
