February 4, 2026
ADM in advanced talks to sell feed mill in Minas Gerais, Brazil
ADM is in advanced talks to sell its feed mill in Três Corações, Minas Gerais, Brazil, to Brazilian agribusiness group Agronorte, which has been growing at an annual rate of more than 30%.
The transaction value has not been disclosed, but sources told Valor it is well below the US multinational's initial target of about R$1.5 billion (US$300 million).
The unit has been idle since mid-2025, when ADM decided to shut it down due to persistent losses. Even so, Agronorte views the plant as an opportunity for rapid expansion in a market where it already has a foothold and intends to scale up operations.
For ADM, the sale marks another step in its strategy to scale back its animal nutrition business. This segment faced "accounting inconsistencies" in 2023 and weighed on the company's results that year.
The Três Corações plant has been operating for 50 years and has changed ownership twice. It is one of the world's largest feed production units, with an installed capacity of up to 520,000 tonnes per year. Under ADM's management, however, output was limited to around 200,000 tonnes annually. Its main production line is pet food, a market growing at an annual rate of 6% to 7%. The facility also produces feed for fish and ruminants.
For Agronorte, acquiring the plant is expected to more than double its feed production capacity and add between R$350 million (US$70 million) and R$400 million (US$80 million) to revenue in 2026, depending on how quickly the transaction is approved.
Agronorte already operates a feed mill in Tocantinópolis, Tocantins, serving the poultry, swine, fish, and ruminant segments. Beyond animal nutrition, the group is active in seven other business areas and reported net revenue of R$1.3 billion (US$260 million) in 2025.
The transaction is expected to be submitted to the antitrust watchdog CADE under summary proceedings. ADM is being advised by Barclays, while Agronorte has hired Ecowa as its financial advisor.
The deal also represents a slight adjustment to Agronorte's growth strategy. While the group had identified animal nutrition and logistics as priority areas for new investments, it has opted to pursue expansion through acquisition rather than developing greenfield feed projects, with the purchase of the ADM plant expected to meet its objectives for the segment.
In logistics, Agronorte continues to expand its storage capacity. The group currently operates three warehouses in Tocantins and plans to add 35,000 tonnes of capacity per year, either through new silos or by expanding existing facilities. "The North and Northeast have a significant storage deficit," said Vinicius Carvalho, the company's chief executive officer and one of its partners.
The strategy is to identify logistics investment opportunities in states where Agronorte already operates, such as Maranhão, Pará, and Piauí. At present, the logistics business—which also includes road transportation—accounts for 60% of the company's revenue.
Within logistics, Agronorte is also considering investing in a port terminal in the North or the Northeast. "In this region, ports are small and controlled by just a few players," said Matheus Hyashida, a partner at Ecowa.
Agronorte recently secured a R$750 million (US$150 million) loan from the Brazilian Development Bank (BNDES) and is in talks with a multilateral agency for long-term financing. According to Hyashida, the goal is to ensure that the current investment cycle does not push leverage—the ratio of net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA)—above two times.
In 2025, leverage stood at 1.7 times, according to the company, based on unaudited figures. Even with the acquisition of the ADM plant, the expectation is that the indicator will close the year at 1.9 times.
- Valor International