Brazil’s Potential to Reclaim¹ Significant Role in Global Cocoa Market

Once a global leader in cocoa production during the 1980s, Brazil has the potential to regain² a significant role in the supply chain beyond the farm gate, according to a report by consultancy Instituto Aya. The country possesses an established industrial base and is one of the world’s largest chocolate consumer markets, highlighting the potential for expanded global influence.

Opportunities and Projections³

The report, supported by SystemiQ, a global challenges solution company, outlines Brazil’s potential to generate up to $2.3 billion in cocoa-related revenue by the end of this decade, capturing 13% of the global market and creating up to 300,000 jobs in the sector⁴. Even more conservative projections suggest the cocoa supply chain could generate $1.5 billion by 2030, securing a 9% global market share.

Brazil has a competitive edge across all stages of the chocolate supply chain, starting with agricultural inputs⁵. The country benefits from the support of Embrapa and the Executive Committee of the Cocoa Plan (CEPLAC), making it one of the world’s largest producers of cocoa seedlings⁶ and specialized⁷ machinery⁸. In addition, Brazil’s expertise⁹ in agroforestry cocoa cultivation¹⁰, a method that uses additional tree species to provide shade and shape the growing environment, sets it apart.

A major challenge for cocoa expansion in Brazil is the lack of access to credit. The report cited data from the central bank, showing that only 0.05% of agricultural credit in Brazil is allocated¹¹ to cocoa. Cocoa producers face issues such as low productivity and persistent¹² threats from pests like witches’ broom disease.