In a factory that exudes the aroma of grandma’s orange cake, the two massive structures each hold 30 million liters of juice. With these additions, the plant’s storage capacity will increase from 180 million liters to 300 million liters per year.

This project is part of LDC’s strategy to expand NFC sales in Europe and the United States, where demand is rising. Currently, the company produces 250 million liters of NFC juice and 150 million liters of frozen concentrated orange juice (FCOJ) annually.

The company is also ramping up the production of byproducts such as essential oils, orange cells, and using orange pulp for animal feed. The fruit’s peel is used to produce pectin, a fiber used in both human and animal food.

Recently, LDC had already invested $5 million in ramps to speed up the unloading of oranges from trucks and $2 million in advanced oil extractors. Additionally, LDC has increased its storage and production capacity for NFC blends at the Santos terminal in São Paulo and its processing facilities in Ghent, Belgium.

“The Matão plant has received $50 million over the past three years. By increasing the share of NFC in our business, we meet consumer demand and boost our profitability,” Jorge Costa, who recently transitioned from leading LDC’s juice division to overseeing all of the group’s operations in Brazil, told Valor.

However, Mr. Costa notes that the efforts of the factories alone won’t be enough to boost supply, given the declining orange production. The harvest in the São Paulo and Triângulo Mineiro belt is expected to drop 24.4% in 2024/25, down to 232.38 million boxes. This volume is 42% lower than the historic peak of 2017/18, when production neared 400 million boxes.

The decline is due to unfavorable weather—high temperatures and lack of rain—and the increasing incidence of greening, a bacterial disease with no cure and difficult to control. “Today, demand is being held back by supply,” said Mr. Costa.

Despite this, LDC sees potential for expanding orange groves in the Pereira Barreto region, near Mato Grosso do Sul. LDC manages 39 orange farms in Brazil, including both owned and third-party farms, and has hundreds of suppliers that change each harvest.

At the Monte Belo farm in Ribeirão Bonito, the trees are divided between irrigated orchards, with lush, fragrant trees, and rain-fed plantations that suffer from the heat. “We last replanted in 2014, and half of the 1,500 hectares received drip irrigation systems. The other half will be replaced when the trees reach the end of their useful life,” said Mr. Costa.