It has to be planted in the jungle or grab some jungle wood and plant it there in the jungle wood (not jungle wood planks)
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You can craft cookies with cocoa beans by putting cocoa beans in between 2 wheat in a crafting table.
You plant them on the sides of Jungle trees
Crafting Recipe: --------------- Wheat, Cocoa Beans, Wheat
Cocoa beans can be used to make cookies. You need wheat and cocoa beans, crafted like this: E E E E E E T C T E = Empty T = Wheat C = Cocoa beans Each crafting will give you 8 cookies. Each cookie heals a half heart.