LDC builds storage tanks in Brazil to boost not-from-concentrate orange juice
22 Mar 2022 --- Louis Dreyfus Company (LDC) is building storage tanks for not-from-concentrate orange juice in Matão, Brazil, increasing annual juice production capacity to 300 million liters. The commission of the storage infrastructure valued at US$25 million, will increase global commercialization and is expected to be operational by the end of 2023.
Brazil is the world’s largest exporter of orange juice. LDC’s operations in the country are fully integrated, comprising more than 25,000 hectares of citrus groves located in the region’s citrus belt.
“Increasing production and storage capacity for NFC will allow us to meet growing consumer demand for this high value-added product, especially in Europe, while reinforcing our position among the top three global processors and merchandisers of orange juice,” says Juan José Blanchard, head of LDC’s juice platform.
The move comes on the back of the company’s recent inauguration of an R&D center in California, US to produce second-generation plant proteins. LDC pursued the plant protein platform based on its growth strategy and in order to diversify revenue streams.
Juicing up investments
The project is the second phase of LDC’s plans to expand commercialization of not-from-concentrate in Europe, North America and Asia.
LDC’s investment in the storage infrastructure will expand its orange juice production.
LDC has three citrus juice processing plants and an export terminal in the Port of Santos, São Paulo state.
The plans were set in motion in 2020 with the roll-out of a dedicated fleet for juice transportation that is 40% more fuel-efficient and produces roughly 85% less sulfur emissions per ton of product.
The company also increased storage capacity by more than 50%, and blending capacity by more than 20%, at its port terminal and processing facility in Ghent, Belgium.
“This project also reinforces the company’s commitment to long-term investment in Brazil, a key origination market for over 80 years,” adds Jorge Costa, global operations director, LDC, juice platform.
The company has also expanded into the specialty coffee branch with Louis Dreyfus Company Asia (LDC) having signed a joint venture agreement with Zephyr Japan to deliver premium coffees to Japanese consumers. The global specialty coffee market is expected to top US$83 billion by 2025, with significant opportunities in Asia.
By Inga de Jong
