A study from Instituto Aya highlights Brazil’s potential to capture 13% of the global cocoa market and generate $2.3 billion in revenue by 2030, reviving its historical position. Despite challenges such as limited access to credit and low productivity, Brazil’s strengths in agroforestry and processing sectors present promising opportunities for growth in cocoa production and industry expansion.
Brazil, once the world’s leading cocoa producer in the 1980s, has the potential to reclaim a significant role in the global cocoa market by integrating all stages of the cocoa supply chain. The nation possesses a robust industrial base and ranks among the largest chocolate consumer markets. A study by Instituto Aya, in conjunction with Systemiq, estimates that Brazil could generate up to $2.3 billion in cocoa-related revenue by 2030, capturing 13% of the market and creating approximately 300,000 jobs.
According to the study, Brazil’s strengths across the chocolate supply chain position it well for global expansion. The country benefits from agricultural support, particularly from Embrapa and the Executive Committee of the Cocoa Plan (Ceplac), contributing to its capacity as a leading producer of cocoa seedlings and specialized machinery. Furthermore, Brazil excels in agroforestry cocoa cultivation, which enhances productivity and environmental sustainability.
The availability of degraded pastureland also presents an opportunity for cocoa cultivation. Industry stakeholders are advocating for cocoa to be designated a priority crop under the forthcoming Degraded Pastureland Conversion Program. Nonetheless, limited access to credit remains a significant challenge; current data indicates that a mere 0.05% of Brazil’s agricultural credit is allocated to cocoa production, alongside issues like low productivity and pest threats.
Integrating cocoa cultivation into forest restoration projects may offer an additional avenue for expansion. The Pará state has initiated regulations to allow cocoa farming within agroforestry systems aimed at restoring legal reserves. However, a cohesive federal law to govern this practice is currently absent.
Brazil’s cocoa processing industry also has potential for growth, with major companies such as Barry Callebaut and Cargill already operational. The study emphasizes Brazil’s dual identity as a significant global cocoa supplier as well as a large chocolate consumer market. To address sector challenges, it is imperative to establish favorable credit lines for cocoa farmers and encourage processors to enter into forward contracts, thus ensuring price stability and improving access to financing for small-scale producers.
Furthermore, enhancing rural technical assistance programs and investing in research and development is critical. Prioritizing mechanization and biotechnological innovation can significantly bolster Brazil’s efforts to combat pest issues affecting cocoa production.
In conclusion, Brazil possesses the potential to significantly rejuvenate its status in the global cocoa market, projecting a share of 13% by 2030. Leveraging its established agricultural and processing capabilities, along with the integration of cocoa cultivation into forest restoration projects, could enhance the sector. However, addressing credit access challenges and investing in technological advancements are vital for overcoming existing barriers. With the right strategies, Brazil can emerge as a leader in the cocoa industry once again.
Original Source: valorinternational.globo.com
