Breeding chocobos is definitely worth it: you can access Materia Caves on the World Map where you can find some of the strongest materia in the game; you can also win some of the best equipment in the game at the Chocobo Races in the Gold Saucer.
You must be at least about halfway through Disc 2 before you can start the process of breeding.
In my first playthrough of Final Fantasy VII, I managed to breed a gold chocobo relying on the Chocobo Sage's somewhat cryptic advice, Chole's clearer interpretations, and a good bit of trial and error; but this guide should hopefully make it easier for you.
The Chocobo Sage's house can be found on the Northern Continent, hidden among some mountains. He is worth visiting just to pick up the Enemy Skill materia that his green chocobo will drop for you. TIP: If you leave Yuffie's Pagoda battles until Disc 2 or 3, then you can make sure you get Trine on this Enemy Skill materia; Trine is the only Enemy Skill which is missable. Here you can find out a lot more about Enemy Skills...
You're going to need a fair amount of Gil to breed chocobos. The easiest way to raise cash in Final Fantasy VII is probably to sell a mastered "All" materia for 1,400,000 gil. Alternatively, you can buy a Sylkis Green from the Chocobo Sage, use the W-Item cheat to make it into 99, and sell them on at a nice profit, and repeat this process over and over. The main reason you need so much Gil is to buy Sylkis Greens and Reagan Greens anyway (and the cost of renting out chocobo stables; 10,000 Gil each), so you could get away just using the W-Item cheat.
Visit the Chocobo Farm and rent out all 6 stables. Now you need to put some chocobos in the stables. In order to breed a Mountain (green) and a River (blue) chocobo, you're going to need a "Great" and a "Good" (both yellow) chocobo of opposite genders. The chocobos you catch on the World Map all have their own rating, from poor through to "Wonderful". Great chocobos can be found at the chocobo tracks in the Rocket Town area or the Mideel area. It doesn't matter which you choose. Just make sure you have your Chocobo Lure materia equipped: you can buy a Chocobo Lure in Disc 1 in the Chocobo Farm; alternatively, later in the game, you can find a Chocobo Lure materia in the lower right-hand part of the outer part of the Farm. Wander around the chocobo tracks until you get into a battle featuring a chocobo. In the Rocket Town area, Great chocobos will always appear with 2 Valron or 2 Kyuvilduns enemies. Any other enemies and it's only a 'so-so' chocobo. In the Mideel Area, only the chocobos who appear with 1 or 2 Spirals are Great.
TIP: Say "Wark" to a Chocobo in the pen in Disc 1, and you will get the "Choco-Mog" Summon.
To catch the chocobo, you will need to defeat the enemies which the chocobo appears with in battle, before the chocobo runs away. If you're able to defeat the enemies the chocobo is with in one hit, then you can probably capture it before it decides to run away, without using any greens. If not, feed the chocobo some greens to distract it while you defeat the accompanying enemies. As a general rule, the more expensive the greens, the longer the chocobo will snack on them for and be distracted.
Capture one Great chocobo. Hop off it and choose to send it back to the stables. Head to the stables, talk to Choco Billy and move the chocobo in from the pen.
Right, now to capture a Good chocobo. You'll find these in the Gold Saucer area, and they always appear with 2 Spencer. If you want to be as sure as possible you have one of the opposite gender to your Great chocobo, then capture 4 and send them all back to the stables. With 4 you have a good chance of getting a mix of males and females. Anyway, if at first attempt you don't capture a Good chocobo of an opposite gender to your Great chocobo, just keep trying. Once you have an opposite gender Good chocobo, talk to Choco Billy to move it into the stables.
Chocobo breeding goes better depending upon how well the chocobo is doing at the races...in the Gold Saucer. So race your 2 chocobos up to Class A in the Chocobo Square of the Gold Saucer. Just enter races and keep winning, and eventually you'll reach Class A. To help you with this, feed your chocobos lots of Sylkis and Reagan Greens to improve their stats (you can buy both from the Chocobo Sage). Keep feeding until there is no improvement in the chocobo (generally takes around 40 of either Sylkis or Reagan Greens). You can use the "R1 R2" cheat while racing (holding these buttons down will refill your stamina) to help you win.
OK, got 2 Class A chocobo? Just one final step...you need a special "Carob Nut". You can get these from a monster called "Vlakorados" near Bone Village on the Northern Continent. Vlakorados looks a bit like a dinosaur. If he doesn't drop the Carob Nut after battle, just steal it from him.
Breed the Great and Good chocobos using the Carob Nut. You should now have either a River or a Mountain chocobo. Mountain chocobos are green; River chocobos are blue. Take a break, as you can't breed 2 chocobos again straight away; they also need a break.. Do some other sidequests, fight some battles, whatever. Before breeding again, save your game, so you can try again if you don't get the other type chocobo of the opposite gender (and don't forget to use another Carob Nut).
Once you have the Mountain chocobo, you can already pick up a powerful materia from the World Map that was previously inaccessible: Mime materia from the Southern part of the Western continent.
The Mountain and River chocobos have to be opposite genders, because we're going to mate them to make the...
You get a Mountain-River-Shallow-Ocean (black) chocobo by mating a Mountain (green) chocobo with a River (blue) chocobo, again using a Carob Nut. Make sure your Mountain and River chocobos are both Class A before you mate them.
Then once you have the Mountain-River-Shallow-Ocean chocobo, you can pick up the HP <-> MP materia from the desert area near the path to Corel, and Quadra Magic materia on an island to the East of Mideel (the black chocobo can cross mountains and rivers, as well as shallow waters). Remember, all of these World Map materia are located in caves.
Time to move on and find out how to breed a...
Step one is having the black chocobo. Now you're going to have to capture a "Wonderful" chocobo. These are located on the chocobo tracks near Icicle Inn, in the Northern-most continent. The Wonderful will always appear with 1 or 2 "Jumping" enemies (the rabbit type creature) only; if you get a rabbit and a wolf, or only wolves, it will be a "Poor" chocobo... Capture 4 Wonderful chocobos and send them back to the stables, again with the idea of getting a mix of males and females, so you have one that's the opposite gender to the black chocobo.
Once you have a Wonderful chocobo of the opposite gender to your Mountain-River-Shallow-Water chocobo, and you've moved it in to the stables, the next step is to once again race the Mountain-River-Shallow-Water chocobo and the Wonderful chocobo at the Gold Saucer (don't forget the Sylkis and Reagan Greens!). Except in this case, race them all the way up to Class S, the Class above Class A.
To breed a Any-Land-Any-Water (gold) chocobo, you need a "Zeio Nut". You get these from Goblins on Goblin Island, an island located towards the North-East of the World Map. If the Goblins aren't dropping it after the battles, just steal it.
Breed the S Class Mountain-River-Shallow-Water and Wonderful chocobos, using the Zeio Nut. You should now be the proud owner of a gold chocobo. Take your new chocobo across the ocean to the very very North-East of the World Map, near Goblin Island. Here you'll find a hidden island you can't access with any vehicle, as it's all forest surrounded by mountain... and one cave. This island is called "Round Island". Inside the cave you'll find Final Fantasy VII's ultimate Summon materia, Knights of the Round.
Your gold chocobo should also be very fast, great for winning races. Spend some time collecting the various prizes at the Gold Saucer.
The hardest part of winning chocobo races is when you have to face Joe, with his TEIOH chocobo. Regardless of how high your chocobo's stats are, TEIOH will always have better Speed and Stamina. To beat TEIOH, you will have to change the in-game setting from AUTOMATIC to MANUAL at the start of the race (press Select on a PS1/PS2/PS3 controller, or the touch pad on a PS4 controller). Then hold down Square, R1 and R2 for about 2/3 of the race - you will outrun TEIOH while keeping your Stamina almost full. Then hold down Circle to sprint while still holding down R1 and R2, from just after when you enter the cavern (the cavern with the columns on each side with spheres inside cubes, it'll make sense when you see it...).
Winning 10 times at S Class gets you a special prize(s)...
You can also earn a gold chocobo by defeating Ruby Weapon, which earns you the Desert Rose item. If you give the Desert Rose to a man upstairs in one of the houses in Kalm, he will give you a gold chocobo in exchange. This gold chocobo is quite slow for chocobo racing; none the less, you can obtain the Knights of the Round materia (as well as any of the other rare materia in caves mentioned above) with this gold chocobo. But, in the original PS1 version of the game, it is very difficult to defeat Ruby Weapon without first having bred a gold chocobo and obtained the Knights of the Round materia.
In the more recent PS4 download, by enabling "God" mode you can defeat Ruby Weapon and obtain the Desert Rose much more easily than in earlier versions of the game which don't have a God mode; in these more recent versions of the game, this can be a simpler way of obtaining a gold chocobo than through chocobo breeding. However, as mentioned above, this gold chocobo isn't great for chocobo racing; and given that chocobo racing can allow you to earn some great prizes, it is still advisable to use chocobo breeding to obtain a super-fast gold chocobo...
To fight Ruby Weapon, you must be either close to the end of Disc 2 or on Disc 3; Ruby Weapon appears in the desert near the Gold Saucer after you have fully defeated Ultimate Weapon.
To fight Ultimate Weapon, again you must be close to the end of Part 2 or on Part 3; you must fly into Ultimate Weapon with your airship when he is hovering near Junon. Subsequently you must chase him, ramming into him with your airship over and over until he lands somewhere; defeat him enough times at different landing points, and he will hover near Cosmo Canyon. Here you can fight him and finish him off.
In Final Fantasy IX, you can get a gold chocobo which can fly - it's so much cooler than an aeroplane or helicopter; but not as good as an Airship!
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Limit Breaks Guide
Enemy Skill Guide
Items Winnable from Battles Guide
Enlisting Yuffie and Vincent
Status Effects Explanations
Wall Market Cross-Dressing Guide
Turtle's Paradise Flyers Locations
Shinra Building Floor 62
Shinra Building Floor 63
Junon Parade Guide
Gold Saucer Guide
Huge Materia Rocket Code
Alexander & Added Cut Materia
Materia Selling Guide (make loads of Gil)
Ultimate Weapon, Emerald Weapon & Ruby Weapon
About the Characters
List of Every FFVII Title
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