Brazil has the potential to capture 13% of the global cocoa market, generating up to $2.3 billion by 2030 and creating 300,000 jobs. With support from Embrapa and Ceplac, Brazil benefits from a competitive edge in the cocoa supply chain, though it faces challenges like limited credit access and pest threats. Integrating cocoa into forest restoration and expanding the industrial sector could further enhance growth.
Brazil has the potential to capture 13% of the global cocoa market, as the country transitions from its past prominence in cocoa production to reclaiming a competitive edge in the supply chain. With a well-established industrial base and one of the largest chocolate markets worldwide, Brazil is positioned to make significant economic contributions. A report by Instituto Aya forecasts that the country could generate $2.3 billion in cocoa-related revenue and create approximately 300,000 jobs by 2030.
The study indicates that across various stages of the cocoa supply chain, Brazil has distinct advantages. The support from organizations like Embrapa and Ceplac facilitates the production of a large number of high-quality cocoa seedlings and specialized machinery. Furthermore, Brazil excels in agroforestry cocoa cultivation, incorporating diverse tree species to enhance growth conditions.
A significant opportunity lies within the use of degraded pastureland for cocoa expansion, spurred by efforts to reclassify cocoa as a priority crop under a new government program. However, challenges persist, primarily due to limited access to credit, with only 0.05% of agricultural financing in Brazil allocated to cocoa. Additional threats include low productivity and pest issues like witches’ broom disease.
Integrating cocoa cultivation into forest restoration efforts presents another expansion avenue. While Pará’s state regulations allow cocoa farming within agroforestry systems for those purposes, federal regulations are yet to formalize this approach. Brazil’s cocoa industry can grow further by leveraging its existing processing sector, which includes well-known companies and smaller bean-to-bar producers.
To address sector challenges, the study recommends implementing favorable credit terms and extending programs like the BNDES Climate Fund to support cocoa. Encouraging cocoa processors to establish forward contracts with farmers can ensure price stability and improve financing access for small-scale producers. Additionally, bolstering technical assistance programs and amplifying investments in R&D are crucial for improving mechanization and developing pest-resistant strategies in Brazil’s cocoa industry.
Brazil stands to significantly impact the global cocoa market by leveraging its established infrastructure and agricultural expertise. While challenges such as limited credit access and pest threats exist, the potential for economic growth is substantial, provided that strategic investments and supportive policies are enacted. Strengthening the cocoa supply chain, from production to processing, is essential for Brazil to reclaim its position as a cocoa powerhouse.
Original Source: valorinternational.globo.com
