Nestlé Boosts Cocoa Sourcing in Brazil

Nestlé has expanded its cocoa purchases in Brazil to diversify its supply chain following global supply shocks that drove cocoa prices to record highs. CEO Philipp Navratil announced the move on 11 September during an interview with Reuters at the company factory in Caçapava, São Paulo, which is the world largest production unit for KitKat chocolate.

The Swiss food producer has built relationships with hundreds of Brazilian cocoa farms. Nestlé is sharing technical expertise on regenerative agriculture to improve crop quality, raise yields, and lower conventional fertilizer use as input costs climb amid conflict in the Middle East.

Brazil was a top cocoa exporter in the 1970s before witches' broom disease devastated groves. While newly planted trees take up to five years to reach full production, the Brazilian government projects national output will double in five years to about 400,000 metric tons. For context, Ivory Coast produces around 2 million tons, while Ghana and Ecuador each produce over 600,000 metric tons annually.