Cocoa

v. 10 n. 389, june , 2025

Abstract

Most of the world’s cocoa production is concentrated in West African countries. Brazil only accounts for a small share of global production and trade, but it has the advantage of covering the whole cocoa chain — from growing and grinding to chocolate manufacturing. Since 2024, international cocoa prices have been climbing fast, mainly because recent harvests haven’t been enough to meet demand. In 2025, weather conditions improved in the main producing countries, but there’s still uncertainty about how much cocoa will be produced, and stock levels remain low. So, prices are likely to stay high. On the flip side, global demand for chocolate is starting to show signs of slowing down. In Brazil, high cocoa prices are driving more investment in cocoa farming, including expansion into the Cerrado and Caatinga regions, where farmers are using more advanced technology. In the BNB’s area of operation, cocoa production is mostly centered in southern Bahia, where small-scale farmers dominate. These producers typically use low-tech methods and have little control over pricing. The main challenges for the sector are improving productivity, bean quality, traceability, sustainability, and making cocoa farming more profitable.