The American company Archer-Daniels-Midland (ADM), specialized in human and animal nutrition products, inaugurated in Cuautitlán Izcalli, State of Mexico, a pet food distribution macrocenter, in which it invested 3.5 million dollars and to which plans to move up to 85% of its operations in the country.
The importance of this macro-distribution center is that it will concentrate a large part of ADM’s Animal Nutrition operations in Mexico, both in volume and sales, taking the place of its main distribution center located in Jalisco, which will continue operating.
“It represents a great restructuring of the company at the logistics level that will help us to be more efficient and sustainable in the operation of managing volumes and customer orders,” Carlos Posadas, vice president of Pet Solutions (pet division at ADM) told Expansión. ) from North Latin America.
The manager pointed out that in recent years they have made very strong investments because they foresee strong growth in demand for their products (Full Trust, Full Life, Winner, Top Choice and Minino). ADM estimates 50% to 60% growth in the pet food market due to higher demand in the next 5 to 7 years.
This macro distribution center will not only be serving operations in Mexico, but also in Central America and Colombia, as it will be consolidating the operations of other smaller storage centers.
“From said distribution point, the transports will leave for the central warehouse and from there we will begin to distribute to our wholesale clients and the most important self-service chains in Mexico, convenience stores and pharmacies,” Posadas said.
The macrocenter will generate more than 230 new jobs in the State of Mexico and will move a volume of 513,000 tons of finished product, between what goes in and what goes out, as well as a daily movement of 50 to 80 transport units, mainly trailers. “We are talking about a center with a lot of movement,” added Posadas.
ADM has 65 years of presence in Mexico and is one of the largest foreign companies operating in the country. It occupies position 73 in the ranking of “The 500 most important companies in Mexico”, carried out by Expansión, registering sales in the country of 2,934 million dollars, according to data from its 2021 global financial report.
Its plants currently have a monthly production estimated at 70,000 million tons and it has five business units: agricultural services (supply and storage of grains); oilseeds (vegetable oils and derivatives); carbohydrate solutions (production of starches, flours, fuels, etc.); transportation and nutrition (human nutrition, animal nutrition and ingredients for health and wellness).
In recent years, ADM has sought to expand its presence and strength in animal nutrition, a market that is valued at $2.4 billion, according to Euromonitor data. This has been underpinned by the acquisition of the French Neovia globally in 2019, specialized in producing animal feed, which in turn had acquired the Mexican company Malta Cleyton.
In Mexico, ADM is already the fourth largest manufacturer of pet food considering all existing categories, according to data from Euromonitor, and the second largest manufacturer at the national level of dry food, better known as croquettes, according to Nielsen data.
While at the national level the pet food category has grown between 6% and 7% in volume, ADM’s brands have grown between 3 and 4 times more than what the market is growing, added Posadas.
The pet food business has been gaining relevance for ADM, at the sales level it currently represents around 50% of what is generated by its Animal Nutrition business unit.
Mexico occupies one of the most important places within ADM for the pet food business, due to the experience it already has in the development of its products.
According to the manager, what attracts ADM de México are the investment facilities, the opportunities to continue growing, the qualified labor force and the facilities that exist in the country to innovate and create cutting-edge and quality products. .
