I've maxed out. Closed this blog. |
You may have heard of this. Predictions are that we will have a serious chocolate shortage by 2020. Could be, but it's not necessary. First, cocoa is something we farm. Drought and other farming problems are only temporary set backs. In a few years they are set right again. It may be too late for specific farmers to get right with the bank, but the world supply of any farm product can be made right again, after natural problems. It's not like an animal becoming extinct, or honeybee colonies being wiped out, or minerals being depleted. The problem is that the areas where cocoa is grown have set fees for the farmer (over regulation by the government). But the candy makers and cocoa processors and retailers are still getting their share of profits. The farmer figures he can make more money growing something else, so the small cocoa farmers are not growing cocoa. When there is a shortage of supply, the farmers still growing it will not get increased prices due to the government controls. But the public will still pay more to consume chocolate. The solution is something we can't control. West African countries and others need only lift the limits set on farm prices of cocoa. Let the poor farmer have a larger share of the money made from his crop. Yes, there will be a lot more farmers, but the competition will keep their base prices lower. The public is willing to pay what it must in order to drink cocoa and eat chocolate. |