Brazil Emerges as New Cocoa Powerhouse Amid Global Shortage

In Bahia, Brazil, farmer Moises Schmidt is building what could become the world’s largest cocoa farm, aiming to transform the global chocolate industry. Backed by a $300 million investment, Schmidt plans to cultivate high-yield, fully irrigated cocoa trees across 10,000 hectares—an area larger than Manhattan. His goal is to make Brazil a global leader in cocoa production, rivaling current top producers Ivory Coast and Ghana, whose output is declining due to aging trees, disease, and climate change.

Global cocoa prices hit a record $12,931 per ton in 2024 amid tightening supply. Schmidt, whose farm is in Riachao das Neves, is capitalizing on the crisis by using industrial farming techniques to boost yields. His new trees produce up to 3,000 kg/ha—ten times Brazil’s average. He plans to increase that to 4,000 kg/ha using positive selection and advanced seedling technology through his nursery company, BioBrasil.

Other major players, including Barry Callebaut and Mars, are investing in similar large-scale projects in the region, citing ideal conditions such as flat land, good soil, and water access. Cargill is already involved in Schmidt’s initial 400-hectare phase.

However, experts warn of risks. Growing cloned trees in monocultures raises the threat of disease outbreaks, like the Witches’ Broom fungus that devastated Brazil’s cocoa sector in the 1980s. There's also debate over bean quality from full-sun cultivation, though early tests show little difference when proper fermentation and drying techniques are used.

If successful, Brazil could reclaim its position as a cocoa superpower, reshaping the global market and providing a reliable alternative as West Africa struggles. The next few years will determine whether this bold bet will pay off for Schmidt—and for chocolate lovers worldwide.