It is a long-term agreement which will see the company supplying Kraft with cocoa products and other chocolate ingredients.
Some of the Cadbury liquid chocolate deliveries will also be part of the deal.
This agreement will more than double Barry Callebaut’s existing business with the food giant.
Due to the increased business, the company has said it plans to invest around $65 million (£42 million) over the next two years to boost its production capacity.
The financial terms of the deal were not disclosed by Kraft when it announced an agreement had been reached.
After the announcement, shares in Barry Callebaut surged.
A spokesperson for the company told Market Watch: “It’s a significant deal and will put Kraft among our largest customers.”
This week, the former marketing director at Cadbury, who quit after not agreeing new terms with Kraft following the takeover of the brand earlier this year, Phil Rumbol, announced he would be starting up a new marketing agency.