Competitiveness of Brazilian cocoa goes through self-sufficiency

Published 2021년 5월 5일

Tridge summary

The article highlights the challenges faced by Brazil's cocoa industry, particularly the need to increase production to meet domestic demand and improve competitiveness. Despite good prices for the 2020/2021 cocoa harvest, a significant drop in production and fluctuating exchange rates have reduced the beneficial effects of increased market prices. Brazil's cocoa industry relies on imported almonds for its processing, but production in key states like Bahia and Pará has declined due to adverse climatic conditions and diseases like witches' broom. To compete globally and increase self-sufficiency, the industry needs to invest in management, technical assistance, and quality improvement. The article emphasizes the potential for growth in cocoa culture, particularly in overcoming the production challenges in Bahia and Pará, and the importance of the drawback mechanism for maintaining competitiveness through imported inputs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The challenge for the coming years is to expand production to meet the demand of the national industry By Anna Paula Losi - May / 2021 The 2020/2021 cocoa harvest is nearing its end, with good prices for Brazilian producers. The lower supply, added to the increase in demand, was one of the factors that contributed to the increase in cocoa prices. However, a sharp and unexpected drop in the production of the complete harvest - including the main and the early season, which should close the period with 162.7 thousand tons, 17.4% less than the 197.1 thousand tons of season 19 / 20, added to the great exchange rate variation and the high cost of production, ended up neutralizing a good part of the beneficial effects of the rise in the market. This market movement, which takes into account many factors other than the supply x demand relationship, also reminds us that Brazil needs to increase its competitiveness and sustainability in the coming years, which necessarily involves ...

Source: Mercado Do Cacau