Saturday, April 19, 2014

Coming up short

The Daily Mail breathlessly warns of a chocolate shortage, but should worry about their own shortage of reporters versed in elementary economics;
Experts are warning that a growing taste for chocolate in Asia – particularly in China – means cocoa farmers will need more help to provide a greater amount to export or manufacturers will be forced to use less cocoa in their products.
The help is already on the way. The forces of supply and demand have been providing that help for thousands of years. The author of this piece (Emma Glanfield) could read it and see for herself;
Most cocoa farms are situated along the west coast of Africa – where many farmers are said to be living off less than $2 a day. 
Better days ahead for those farmers, then. No?
 Mondelez International – a multinational confectionery, food and beverage conglomerate – said it had pledged to invest more than $400 million to help ease the crisis.
Over the next ten years, it is set to pump millions into Ghana, Ivory Coast, Indonesia, India and the Dominican Republic to help improve the productivity and life of cocoa farmers.
So, we're looking at increased supply. How about demand;
It is predicted chocolate prices will soar to keep up with the rising demand – otherwise consumers will increasingly be offered products filled with substitutes, such as nuts and fruits, to ‘pack out’ chocolate bars. 

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