ADM to shutter Brazil pet food plant amid strategic restructuring

BRAZIL – Archer Daniels Midland (ADM), the U.S.-based grain giant, is shutting down its pet food manufacturing plant in Brazil, marking a significant retreat from the country’s pet nutrition sector amid a broader operational overhaul. 

The company confirmed the closure in a statement to Reuters this week, citing the need to streamline costs and align operations with future strategic priorities.

The Tres Corações (TCO) facility in Minas Gerais, acquired by ADM in 2019, will continue operations for another 90 days, with workers notified of the decision on July 15, according to the company’s São Paulo-based press officer. 

The plant, which once employed over 900 people and produced up to 525,000 tons of pet food annually, has long been a cornerstone of ADM’s Latin American pet nutrition business.

Sale attempt falters, strategic shift takes hold

“After exploring a wide range of alternatives, we have determined that our Tres Corações facility and related businesses and assets are no longer aligned with our future operational needs,” ADM said in its statement.

According to local media reports cited by Carlos Sambrana of NeoFeed, ADM had enlisted Barclays earlier this year to sell its Brazilian pet food unit, with valuations ranging between R$1 billion (approximately US$172.2 million) and R$1.5 billion (approximately US$258.3 million). 

However, a source familiar with the matter said the company had failed to find a buyer after nearly a year of searching. ADM did not comment on the unsuccessful sale attempt.

The closure comes amid a sweeping restructuring effort announced by ADM in February. The company aims to cut costs by US$500 million to US$750 million over the next three to five years, a response to its lowest fourth-quarter adjusted profit in six years. Hundreds of job cuts were also announced as part of the initiative.

The Tres Corações facility was part of ADM’s nutrition division, the smallest of its three business units, which came under scrutiny in 2024 following an internal accounting investigation.

Despite the closure, ADM retains a presence in Brazil’s animal nutrition sector, continuing operations at a separate facility in São Paulo state dedicated to animal nutrition products.

Pivot to Mexico’s expanding pet food market

While ADM exits the Brazilian pet food manufacturing scene, it is simultaneously reinforcing its footprint in Mexico. In April 2025, the company inaugurated its first wet pet food plant in Yecapixtla, Morelos, with a US$39 million investment.

The facility includes three production lines for wet dog and cat food under ADM’s flagship brands Ganador and Minino.

“This expansion will allow us to meet the needs of our strategic partners and strengthen our position within the top two pet food manufacturers in the country,” said Karim Castro, president of Animal and Pet Nutrition for Northern Latin America.

ADM, which entered the Mexican pet food market in 2008, has steadily built a robust brand presence through Ganador, Minino, Top Choice, and FullTrust. 

Its recent investments, such as expanding a production line in Guadalajara and launching a Macro Distribution Centre in the State of Mexico, signal a clear pivot toward Mexico’s burgeoning market, which boasts over 80 million companion animals.

With the Yecapixtla facility now online, ADM plans to supply half of Mexico’s wet pet food demand by the end of 2025, reinforcing the company’s shift from a consolidating Brazil operation to growth-driven expansion in North America.

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