US agri-food heavyweight Archer-Daniels Midland (ADM) has invested $33m to build a new pet-food production line in Guadalajara, Mexico.
The ingredients supplier to human- and animal-food manufacturers said adding the line will increase the factory workforce by 65% and “optimise dry pet-food production flow”. Alongside its Ganador and Minino brands, ADM said the investment will also support the development of new product ranges.
The line will be equipped with new and automated technologies.
Chicago-based ADM, which has been present in Mexico for more than 65 years, said the investment will also expand its coverage to Central America and Colombia.
Jorge Martínez, president of ADM’s pet-nutrition business, said: “Without a doubt Guadalajara is a strategic, economic location for ADM in Mexico. The integration of this new production line adds range and flexibility to our capabilities in Mexico and enables ADM to triple its capacity and give us wider international visibility within the pet-food market.”
Jalisco, the region in which Guadalajara sits, has been identified as a key growth market in Mexico, based on increased economic activity and growing investment in the region.
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By GlobalData
ADM’s plant adheres to its CSR initiatives by reusing water from a new treatment plant.
In 2021, ADM bought a majority stake in US pet-food business P4 Companies – the owner of the PetDine, Pedigree Ovens, The Pound Bakery and NutraDine pet-food businesses.
It paid $450m for a 75% stake in the business with an option to buy the remaining 25%.
While better known as an ingredients business, in March ADM launched the direct-to-consumer plant-based health brand Knwble Grwn.
The Knwble Grwn line – distributed via Amazon.com and Walmart.com – includes flaxseed, hemp seed, flax oil, hemp oil and quinoa.
ADM said the launch was driven by consumer demand for “transparency and traceability” of their food.
The company said that while its “core business continues to be B2B”, it is “building more and more of a presence in D2C”.
Just Food has asked ADM for details of how its Ganador and Minino pet-food brands are distributed.
