Cocoa industry fears tighter import restrictions

Reducing the duration of Brazil’s cocoa drawback regime—under which imported cocoa beans used to manufacture export products are exempt from import taxes—from two years to six months could result in millions of reais in losses for both the processing industry and cocoa growers.

That is the conclusion of a study by Ecoa Consultoria Econômica, commissioned by the National Association of Cocoa Processing Industries (AIPC).

According to the consultancy’s estimates, the measure could reduce annual revenue by R$207 million for Brazil’s cocoa processing industry and by R$21.7 million for rural producers.

Although still not significant in absolute terms, cocoa bean imports are already showing a substantial increase compared with previous years. Between January and April 2026, Brazil imported 220 tons of the product, compared with 11 tons in the same period a year earlier. The chart below compares the figures with previous years, according to Datamar data:

Cocoa Bean Imports | Jan-Apr | 2022 – 2026 | WTMT

Source: DataLiner (click here to request a demo)

In March, the federal government issued a provisional presidential decree reducing the duration of the cocoa drawback regime. On Tuesday (16), the joint congressional committee reviewing the proposal approved a favorable report. The measure will now proceed to votes in the full chambers of the Chamber of Deputies and the Senate.

In practice, the change shortens the period companies have to import cocoa beans, process them, and export cocoa products such as liquor, butter, and powder.

The study estimates that the restriction would increase the cost of imported cocoa beans used in processing by 10.3%. Based on that impact, Ecoa assessed the effects on industrial activity, exports, demand for domestically produced cocoa, and farmers’ revenue.

The report’s main conclusion is that the loss of scale in the processing industry is likely to outweigh the increase in the share of Brazilian cocoa beans used in processing. With higher costs, companies are expected to lose competitiveness, export less, reduce processing volumes, and purchase fewer cocoa beans.

According to Cláudia Viegas, a partner at Ecoa, the outcome would be detrimental to cocoa cultivation in Brazil.

“Given the economies of scale enjoyed by the cocoa processing industry and the current level of idle capacity at processing plants, the estimated loss of competitiveness in export markets outweighs the substitution effect,” she said.

The study also projects a decline in the prices paid to cocoa growers as demand weakens.

Source: Valor International

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