Cocoa Duck Won Lee Jun Ho Kang
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Cocoa
Duck Won LeeJun Ho Kang
History of the trading of cocoa• Cacao tree Native to the Americas Lives in a limited geographical zone Nearly 70% of the world crop in West Africa
• Where is it produced?• Who produces this product?• Where is it traded? London & New York
• What goods are made from this primary product? Chocolate Hot Chocolate Chocolate powder
Country Amount produced Percentage of world production
Côte d’Ivoire 1.3 million tonnes 37.4%
Ghana 720 thousand tonnes 20.7%
Indonesia 440 thousand tonnes 12.7%
Cameroon 175 thousand tonnes 5.0%
Nigeria 160 thousand tonnes 4.6%
Brazil 155 thousand tonnes 4.5%
Ecuador 118 thousand tonnes 3.4%
Dominican Republic
47 thousand tonnes 1.4%
Malaysia 30 thousand tonnes 0.9%
Product pricing• Price range:Started with $600 per ton in 1970Over $3000 per ton in 2008 July
Cocoa price in 1970
Cocoa price in 2008
Fluctuations in price
World prices and production of cocoa (from 1971/72 to 2005/06)
Conditions responsible for price change• Political instability• Bad weather• Development in technology Fertilizer, spray machines
• Major increase in population Better living standard Good healthIncrease in labor days
• Education• Influence from other countries
I want to be an educated cocoa producer! Tell me
all you know about cocoa!
Well then, my friend, remember this simple equation. Cocoa = your life.
Once you fully understand this extremely confusing theory, you’ll be able to take extra care for your cacao
beans!
Case study: “Cocoa price hits 14-year high”• 2002 March, 11• Reported by BBC News• Cocoa price rose nearly
70% since 2001 Sep.• Main cause: Political instability Bad weather
• Related products affected
Industry Groups/Trade Agreements
• Industry GroupsWCF (World Cocoa Foundation)Nestle
• Trade AgreementsCocoa Protocol
Existence of speculators?• Speculators:People who buy certain goods expecting a rise in price and sell when the price increases, butmostly do not have interest in consuming
• Especially active in food markets
• London (2008 Feb, 04): Reported by AFX News Limited
Cocoa price increased by 24%
WRRRRRRRRRRRRRY
(Sinister laughter)
Websites used• "About the World Cocoa Foundation." World Cocoa Foundation. World Cocoa
Foundation. 3 Nov. 2008 <http://www.worldcocoafoundation.org/default.asp>.• Cleveland, Cutler J., ed. "Environmental change and socioeconomic factors in
Africa." The Encyclopedia of Earth. 26 Aug. 2008. 3 Nov. 2008 <http://www.eoearth.org/article/environmental_change_and_socioeconomic_factors_in_africa>.
• "Cocoa price hits 14-year-high." BBC News. 11 Mar. 2002.3 Nov. 2008 <http://news.bbc.co.uk/2/hi/business/1866978.stm>.
• "Cocoa Protocol." Wikipedia. 26 Oct. 2008. Wikimedia foundation. 31 Oct. 2008 <http://en.wikipedia.org/wiki/cocoa_protocol>.
• "Cocoa." Wikipedia. Oct.-Nov. 2008. Wikimedia Foundation. Oct.-Nov. 2008 <http://en.wikipedia.org/wiki/cocoa>.
• Ellis, Jamie. "International Effect on Cocoa Prices." Whiskey & Gunpowder. 11 Feb. 2008. 3 Nov. 2008 <http://www.whiskeyandgunpowder.com/archives/2008/20080211.html>.
• "International Cocoa Initiative." Wikipedia. 28 Feb. 2008. Wikimedia foundation. 31 Oct. 2008 <http://en.wikipedia.org/wiki/international_cocoa_initiative>.
• "Softs - Speculator buying sends coffee, cocoa, to fresh multi-year highs." Forbes. 04 Feb. 2008.3 Nov. 2008 <http://www.forbes.com/feeds/afx/2008/02/04/afx4610878.html>.
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