Archer-Daniels Midland (ADM), a prominent player in the US agricultural and food industry, has allocated $33 million for the establishment of a state-of-the-art pet food manufacturing facility in Guadalajara, Mexico.
The supplier of ingredients to manufacturers of both human and animal food has announced that the new production line will lead to a 65% expansion of the factory’s workforce and enhance the efficiency of dry pet food production. In addition to bolstering its Ganador and Minino brands, ADM stated that this investment will facilitate the introduction of fresh product lines.
State-of-the-art and automated technologies will be integrated into the production line.
Chicago-based ADM, with a presence in Mexico spanning over 65 years, stated that this investment will also broaden its footprint into 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 area where Guadalajara is located, has been recognized as a pivotal growth market in Mexico due to its rising economic activity and the increasing investment in the region.
ADM’s facility aligns with its corporate social responsibility (CSR) efforts by recycling water sourced from a recently implemented treatment facility.
In 2021, ADM acquired a controlling interest in the US-based pet food company P4 Companies, which owns the PetDine, Pedigree Ovens, The Pound Bakery, and NutraDine pet food brands.
They invested $450 million for a 75% share in the company, with the option to acquire the remaining 25%.
Although primarily recognized as an ingredients-focused enterprise, ADM introduced the direct-to-consumer plant-based health brand Knwble Grwn in March.
The Knwble Grwn product range, available through Amazon.com and Walmart.com, consists of items such as flaxseed, hemp seed, flax oil, hemp oil, and quinoa.
ADM explained that the launch was prompted by consumers’ desire for greater “visibility and traceability” in their food.
The company stated that even though its “primary focus remains B2B,” it is steadily expanding its presence in the direct-to-consumer (D2C) sector.