Bahia is one of the main producers of cocoa in Brazil and the demand for the product has led to an increase in prices, especially at this time, given the growing demand for chocolate. On the other hand, the reduction in production directly impacted the raw material deficit and, in 2023, the state produced only 114 thousand tons.
In an interview with Bahia Econômica, Guilherme Moura, president of the Cocoa Sector Chamber of the Ministry of Agriculture and director of the Bahia Agriculture Federation (Faeb), commented on expectations for the period.
“The new prices really bring a completely different new scenario to the region. After all, prices have more than doubled in the last three months. This has a huge impact on the amount of money circulating in the region. This new scenario will take place when the harvest begins to enter more strongly, which is precisely from next month onwards. So we imagine that, if prices remain the same, the impact will be very large. We are talking about a real increase in the circulation of resources, a capitalization on the part of producers and companies in the very large sector and we hope that the impact will be very positive”, said Moura.
According to him, companies in the region are adapting to the new scenario and should benefit from the movement, even with the rise in prices.
“They have to adapt to this new scenario. If we think about companies, especially companies that buy cocoa, we are talking about another volume of working capital to purchase the raw material. So, I imagine that companies will have to prepare themselves to be able to acquire cocoa at these new levels. But as it is a trade, they will also, at the time of sale, already sell their product, in another condition, so I imagine that companies in the region that are involved in agriculture will also benefit from this new movement. Companies have to prepare. It is a new volume of resources for you to change the operation, but I imagine that when it is completed, the sale and everything else is made, the return will also be much greater”, he analyzed.
Despite the appreciation of the product, the president pointed out that there is still no increase in demand for land for cocoa plantations. In his analysis, due to price fluctuations, the tendency is for the movement to decline in the coming months.
“And regarding the increase in demand for land, I don’t think so yet, right? Because everything is very new, cocoa is an agricultural commodity, we know that prices fluctuate, so there is a huge expectation to start surfing this new movement. If this new movement is a medium-term movement, and it seems that it will be, based on the characteristics of cocoa, it should not rebound with much force, in the coming months, based on the trend. Everything suggests that this will have an impact, whether on the price of land or on the increase in demand for land for cocoa plantations”, he explained.
On the other hand, Guilherme believes that the agricultural inputs market should heat up in the coming months, generating more hiring and, consequently, a movement in the local economy.
“Agricultural input companies, that’s it, right? I imagine they will also improve this marketing a lot. This agricultural input market should heat up. Because with these new prices, the tendency is for producers to make more use of technology, buy more inputs, heat, and hire more people. So hiring people has a cascading impact, it heats up the entire economy, we begin to experience a new moment of economic dynamism in the region, because after all, cocoa has a very large relevance in the economy of this region. And agricultural input companies too. The producer starts to invest much more heavily in his business and this is directly reflected in the acquisition of inputs, defensive fertilizers, machines, equipment. So, companies, institutions of companies that are in some way linked to the sector should benefit positively from this new scenario”, he concluded.
Photo: Paula Laboissiêre/Agência Brasil
