ADM to close Brazil pet food plant as part of cost-cutting measures.

ADM is closing its pet food manufacturing plant in Três Corações, Brazil, affecting 750 staff and 150 employees at other undisclosed locations. The move is part of a cost-cutting plan to save $500-700m over five years, as the company faces "ongoing market challenges" and legislative uncertainty. The plant supplies pet food, livestock, and aqua feed products.

Archer Daniels Midland (ADM) has announced the closure of its pet food manufacturing plant in Três Corações, Brazil, affecting approximately 750 staff and 150 employees at other undisclosed locations. The move is part of a broader cost-cutting plan aimed at saving $500-700 million over the next five years, as the company navigates ongoing market challenges and legislative uncertainties [1].

The plant, which supplies pet food, livestock, and aqua feed products, will operate for another 90 days before shutting down. ADM stated that the decision to close the facility was made after exploring various alternatives and determining that the Tres Coracoes (TCO) facility and related businesses no longer align with its future operational needs [1].

ADM's decision to close the plant follows a period of financial difficulties, including a 2024 accounting investigation into its nutrition division, the smallest of its three business units. The company also reported its lowest fourth-quarter adjusted profit in six years earlier this year [2].

Despite the closure of the pet food plant, ADM continues to maintain a presence in the Brazilian market with its remaining animal nutrition products factory in Sao Paulo state. The pet food market in Brazil has shown significant growth, indicating potential opportunities for other market players following ADM's exit [2].

The closure of the plant is part of ADM's strategic shift to streamline costs and operations. The company aims to reduce expenses by $500 million to $750 million over the next three to five years, which includes the closure of the Tres Coracoes facility and other cost-cutting measures [1].

References:
[1] Reuters. "US-based ADM shuts down Brazil pet food plant." July 17, 2025. [URL](https://www.reuters.com/world/americas/us-based-adm-shuts-down-brazil-pet-food-plant-2025-07-17/)
[2] IndexBox. "ADM closes pet food plant in Brazil amid strategic shift." [URL](https://www.indexbox.io/blog/adm-closes-pet-food-plant-in-brazil-amid-strategic-shift/)