Chocolates & Candy
Chocolate
confectionery constitutes a large segment of the Brazilian food industry.
Brazil is not only a major producer but also a major exporter. The market
is dominated by Brazilian companies and the multinational Nestle. Chocolate
production is estimated at 200,000 metric tons. Imports amount to less
than US$10 million. Until recently, the market was basically closed
due to high import tariffs on imported confectionery products. Imports
have increased because of lower tariffs, lower prices and quality of
the imported products. Products from the United States such as those
from Hershey can now be found in Brazil at competitive prices. The spread
of franchisees in the confectionery field is also contributing toward
the expansion of imported products.
The
market for imported candies is also new to Brazilians. According to
trade sources, Brazil is the world's third largest producer of candies,
with annual production of 80 billion pieces, with an annual gross income
of US$500 million, and exports of US$60 million. The market opportunity
for imported candy is based on quality and packaging which is considered
superior to the Brazilian produced candies. Again, only a minor part
of the population can afford imported products because of the higher
price.
COCOA
Cocoa
bean production in Brazil for 1999/2000 of 125,290 tons remains unchanged
from the October forecast, but down 21 percent from last season. The
current forecast marks the lowest cocoa production in 30 years due to
the devastation caused by the witches' broom disease in the cocoa region
of Bahia. Trade data indicates a 12-percent decline in exports of cocoa
and cocoa products in 1999 and record imports of cocoa beans.
Ten years after the introduction of witches' broom disease, the government
of Bahia officially inaugurated, in November 1999, a Cocoa Bioplant,
which is the result of an investment of US$3 million, jointly funded
by the federal and state governments. The bioplant is located near Ilheus,
Bahia, and has the stated goal of producing 30,000 rooted plants and
176,000 grafting sticks of improved genetic materials on a daily basis.
This bioplant represents a major step towards a rehabilitation program
for the region.
