Schmidt Agrcola, a prominent agricultural company in western Bahia, Brazil, has unveiled an ambitious plan to reshape the countrys cocoa industry.
The company will invest R$270 million ($50 million) to expand cocoa production in the region.
This move marks a significant shift from the traditional cocoa-growing areas in southern Bahia.Brazil currently stands as a major player in the global cocoa market, with Bahia and Par accounting for 95% of the countrys total production.
In 2023, Bahia alone produced 139,011 tons of cocoa beans.
However, the industry has faced recent challenges, with a 35% drop in Brazilian cocoa exports in the first half of 2024.Moiss Schmidt, Director of Institutional Relations at Schmidt Agrcola, shared the companys strategy to establish cocoa cultivation in Barreiras and Luis Eduardo Magalhes.
The company aims to increase its current 600 hectares of cocoa cultivation to 10,000-15,000 hectares over the next 8-10 years.Western Bahia: The New Frontier for Brazilian Cocoa Cultivation.
(Photo Internet reproduction)The expansion plan leverages existing agricultural knowledge in the area, particularly banana cultivation, which complements cocoa production.
Government support plays a crucial role, with both state and federal authorities facilitating necessary approvals.Western Bahia: The New Frontier for Brazilian Cocoa CultivationSchmidt Agrcolas initiative comes at a critical time for the global cocoa industry, as major producers like Ivory Coast and Ghana face climate-related challenges.
Brazils increased production could help alleviate the global cocoa supply crisis.The companys vision extends beyond the initial investment, with plans for a second project that could increase the total investment to R$1 billion ($180 million).
This expansion aligns with Brazils goal to become self-sufficient in cocoa production and resume exports by 2030.Brazils Cocoa Comeback: Doubling Production by 2030Discussions are underway to explore cocoa cultivation opportunities in the Matopiba region and Par state, potentially transforming Brazils agricultural landscape.
However, challenges remain, including access to credit for small and medium-sized farmers and the need for more widespread sustainability certifications.Schmidt Agrcolas investment represents a bold step towards increasing Brazils global market share in cocoa production.
If successful, this initiative could strengthen the countrys position in the international cocoa market and impact global supply chains.