Brazil has the capacity to regain a leading position in the cocoa market, potentially capturing 13% of the global share by 2030. A recent study from Instituto Aya indicates the country could generate $2.3 billion in cocoa-related revenue, creating 300,000 jobs. Despite challenges like limited credit access, with strategic support, Brazil can leverage its competitive advantages to enhance the cocoa supply chain and foster economic growth.
Brazil has the potential to recapture a significant position in the global cocoa market, as highlighted by a recent study from Instituto Aya. The country, which was the world’s leading cocoa producer in the 1980s, could generate up to $2.3 billion in cocoa-related revenue by the end of the decade, capturing an impressive 13% of the global market share. This growth could additionally create approximately 300,000 jobs in the cocoa sector.
The study indicates that even under conservative estimates, Brazil could generate $1.5 billion by 2030, securing a 9% share of the market. Brazil possesses a competitive advantage at all levels of the chocolate supply chain, benefiting from robust support from organizations such as Embrapa and the Executive Committee of the Cocoa Plan (Ceplac). These organizations help Brazil maintain its status as a leading producer of cocoa seedlings and specialized machinery.
Brazil also excels in agroforestry cocoa cultivation, which employs additional tree species to enhance the growing environment. This expertise positions Brazil favorably for expanding its cocoa production. Moreover, industry advocates are pushing for the classification of cocoa as a priority crop under the upcoming Degraded Pastureland Conversion Program, which would allow for increased production on degraded lands.
However, the sector faces critical challenges, particularly in access to credit. Currently, only 0.05% of agricultural credit in Brazil is allocated to cocoa. Low productivity and threats from pests such as witches’ broom disease compound these issues. Additionally, integrating cocoa cultivation into forest restoration projects may provide pathways for expansion in designated preservation areas, though federal regulations remain lacking.
Beyond production, Brazil’s cocoa processing sector also holds significant growth potential. The country is home to major processing companies like Barry Callebaut and Cargill, along with smaller firms that create bean-to-bar and tree-to-bar chocolates. The study emphasizes that Brazil is not only a major supplier in chocolate manufacturing but also one of the largest chocolate consumer markets.
To overcome the sector’s challenges, the study recommends establishing favorable credit lines with lower interest rates and longer repayment terms. It also proposes extending the BNDES Climate Fund’s favorable conditions to the cocoa sector. Encouraging processors to engage in forward contracts with farmers could stabilize prices and improve credit access.
Lastly, the report underscores the importance of strengthening rural technical assistance programs and investing in research and development. Focus should be placed on mechanization for harvesting and processing, as well as biotechnological innovations aimed at combating pests affecting cocoa plantations in Brazil.
In summary, Brazil’s cocoa industry possesses significant untapped potential to reclaim a vital role in the global market, with opportunities for revenue growth and job creation. Key challenges such as limited access to credit must be addressed. With strategic investments and support, Brazil could leverage its competitive advantages across the cocoa supply chain, contributing to sustainable economic development in the sector.
Original Source: valorinternational.globo.com
