Nestlé Purina has announced a new US$100 million investment for 2026-2027 to expand its pet food production complex in Silao, Guanajuato, reinforcing Mexico’s position as a strategic manufacturing hub for Latin America.
The expansion will likely target both wet food and dry food production, reflecting the company’s need to increase output across formats as regional demand continues to outpace supply capacity.
Silao: From flagship plant to LATAM mega-manufacturing hub
Since operations began in 2015, the Silao facility has evolved into what is widely recognized as the largest pet food production plant in Latin America, with production scale exceeding major manufacturing hubs in Brazil.
The site originally launched with an estimated capacity near 130,000 metric tons annually, but successive expansions — including new production lines and automation upgrades — have significantly increased output.
Today, the facility is estimated to operate near 285,000 metric tons of dry pet food capacity and roughly 50,000 metric tons of wet pet food capacity annually, positioning it as a multi-format production anchor for the region.
Dry food shortages: Structural driver behind the new investment
A key driver behind the new expansion is the persistent supply imbalance in dry pet food. Despite its scale, Purina Mexico still faces structural dry food shortages, forcing the company to rely heavily on imports — particularly from the U.S. — to meet local and regional demand.
Mexico remains one of the largest pet food markets in Latin America, and consumption growth, especially in premium dry food, has outpaced local production capacity. As a result, imported dry products continue to play a significant role in maintaining service levels across channels.
Expanding dry food capacity locally is expected to improve supply stability, reduce logistics complexity and strengthen cost competitiveness over time.
Industry signal: The era of LATAM mega-sites
Beyond capacity increases, this investment reflects a broader structural shift across the pet food industry: consolidation into fewer, larger, highly automated mega-sites capable of serving multiple markets with consistent quality and cost efficiency.
For the regional industry, Silao is no longer just a flagship plant. It is becoming a key production hub that will help define how pet food is made and supplied across the Americas, as demand keeps growing faster than existing manufacturing capacity.
