Nestlé is increasing the amount of cocoa it sources from Brazil to diversify its supply chain, following a period of record commodity prices and disruption to global production.

The company is building relationships with hundreds of Brazilian cocoa farms and working with growers on regenerative agriculture techniques designed to improve yields and quality while reducing their reliance on conventional fertilisers.

Chief executive Philipp Navratil said Nestlé was looking to make its cocoa supply chain more resilient after recent supply shocks sent prices to record highs.

West Africa has traditionally been Nestlé’s main source of cocoa, but the group has identified Brazil as a growing source of high-quality beans as production in the country recovers.

Brazil was once a major global cocoa producer before plantations were badly hit by the Witch’s Broom fungal disease. In recent years, investment in more resilient cocoa trees and larger farms has helped revive the country’s production prospects.

Navratil said diversification had become an important part of Nestlé’s sourcing strategy, with the company sharing technical knowledge with Brazilian farmers to increase productivity while lowering input costs.

The push to reduce conventional fertiliser use has taken on added significance as agricultural input costs rise amid geopolitical tensions in the Middle East.

However, increasing Brazil’s role in the global cocoa market is expected to take time, as cocoa trees can take as long as five years to reach their full production potential.

Brazil currently produces roughly enough cocoa to satisfy its own domestic demand, but the country’s government expects output to double to around 400,000 tonnes over the next five years.

It comes as chocolate manufacturers continue to contend with a volatile cocoa market following poor harvests and supply disruption in major West African producing nations.

Ivory Coast remains the world’s largest cocoa producer at around two million tonnes a year, while Ecuador has been rapidly expanding production and is approaching the volumes produced by Ghana, the world’s second-largest supplier.

Nestlé has also been stepping up its wider work with cocoa growers. Its Cocoa Plan covered 96.2 per cent of the cocoa it sourced in 2025 and involved more than 178,000 farmers, with the programme focused on improving farming practices, farmer livelihoods and the sustainability of cocoa production.

The food giant said regenerative farming practices including better crop management, pruning and the planting of shade trees can help improve yields and strengthen farms against climate and production risks.

Sign up here to get the latest grocery and food news each morning