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Três Corações Faces Crisis After Mass Layoffs at the Largest Pet Food Plant in the Region
Crisis in Mining Town Worsens After Factory Closure, Threatening Almost All Jobs Created in the Last Year
The announcement of the closure of ADM’s factory in a town in southern Minas Gerais has become one of the biggest economic shocks in its recent history. Within 90 days, 780 workers will lose their direct jobs, and nearly 2,000 indirect positions will cease to exist — numbers that surpass almost all formal jobs created by the municipality in 2023, according to the legal representative of the local union, José Alberto de Oliveira Nador.
For a town of just over 80,000 inhabitants, the loss is devastating. “We are providing a list of feed companies in Minas for the city hall to try to make contact,” Nador stated, emphasizing that the plant, valued at up to R$ 1.5 billion, was a reference in producing over 500,000 tons of dog and cat food annually.
Domino Effect on the Local Economy
Economist Marçal Serafim Cândido explains that the closure of an operation of this magnitude has immediate and prolonged repercussions. “In addition to unemployment, the municipality loses tax revenue. And since smaller towns have fewer businesses to absorb this workforce, the impact can last a long time,” he said.
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The urgent need to implement a severe cut in public spending and a massive increase in taxes, in addition to drastically compromising the quality of basic services and the purchasing power of the population, could result in social unrest in the country, with the population leading protests, strikes, and frequent disturbances.
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FIRJAN’s mega plan of R$ 526.3 billion for Rio de Janeiro aims to revive Brazil’s largest industry, with two-thirds of the investments going to oil and gas.
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China signals an increase in beef imports, Brazil has already consumed 70% of the 1.106 million ton quota and seeks to renegotiate the tariff that jumps from 12% to 55%, while demand from the US also skyrockets.
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Food inflation rose 302% in 20 years in Brazil, but the supermarket changed: purchasing power yielded 87% more mortadella and 31% less fruit, and ultra-processed foods took over the cart.
Local businesses, service providers, and suppliers are already feeling the downturn. Small businesses that relied on the flow of salaries circulating in the economy fear significant drops in revenue. And the risk of a brain drain increases as opportunities within the town become scarce.
City Hall Attempts Quick Response
To try to contain the crisis, the City Hall announced a job fair aimed at re-placing dismissed workers. Representatives from dozens of companies met on the 17th to align strategies and offer jobs compatible with the profiles of the affected professionals.
The municipal secretary of Economic Development, Gustavo Franco, reported that there are already talks with Invest Minas and companies interested in part of the plant’s infrastructure. “We cannot let these layoffs negatively impact the city. The area has, for example, a grain storage unit that can be repurposed,” he stated.
One of the companies that has already expressed interest is an auto parts manufacturer with 50 years of operations in the municipality. According to the executive HR manager, Fabiano Villatoro, 220 immediate positions are open in operational, technical, and administrative areas. “We want to ensure employability for citizens and meet our labor needs,” he said.
Seeking Solutions with ADM
The mayor is in Brasília seeking dialogue with ADM’s management to understand the next steps and expedite negotiations regarding the future of the industrial complex. The municipal administration hopes to reduce the time of social impact and maintain a positive balance of formal job creation, which so far stands at 330 positions in 2025, according to Caged.
However, until a new investor occupies the space or concrete alternatives emerge, the town faces a period of uncertainties. The case highlights how dependence on a single large employer can weaken local economies — and how global corporate decisions can reshape, in just a few months, the future of thousands of families.
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