CHOCOLATE SHORTAGE

http://www.theguardian.com/lifeandstyle/2014/nov/21/cocoa-crisis-world-chocolate-stash-melting-away

This article caught my attention since I love chocolate. There is a warning that there will be a global chocolate shortage by 2020. Several cocoa trees have been diseased, and many farmers have sold it at very low prices. This connects to what we learned about there being a point that you will sell something at the lowest cost to continue to stay at the market, but if you sell below that point, you’ll probably exit the market. One farmer stated that he should have gone into the rubber market since it is more profitable. The government of the Cote d’Ivoire tried to fix the price in order to save the market; it did increase income. An externality would be Ebola. Because of Ebola, the exports of cocoa could be affected. So far, they haven’t been, but since the Cote d’Ivoire boarders Liberia and Guinea, there is that threat.

7 Comments »

  1. Reilly B Said,

    December 1, 2014 @ 5:46 am

    It really scares me that there will be a shortage of chocolate soon because chocolate is my life. It makes sense, however, that it will happen. Between pollution and global warming, most plants will be effected negatively. A lot of firms will most likely exit the market because they won’t make a profit off of chocolate anymore since there is a lack of supply. The supply will go down, demand will most likely stay the same or increase.

  2. allons Said,

    December 2, 2014 @ 2:29 pm

    I was shocked to hear that there would be a shortage in chocolate, but I do think that it makes sense regarding global warming. This article is a good example of people entering and exiting the market. Great article.

  3. tuccioh Said,

    December 2, 2014 @ 9:58 pm

    This is a very interesting article, and you wonder what the future will be. I think as consumers we should expect to see an increase in the price of chocolate over time, and perhaps some chocolate companies will struggle with their sales. Overall, I feel many firms will exit the industry because they will see a decline in their profits.

  4. Austin Sumners Said,

    December 4, 2014 @ 7:08 pm

    As I read the article I was intrigued in the topic at hand. It is crazy how one of the worlds favorite sugary snacks could be affected in its production because of the shortage in the actual plant itself. I think that someone will solve this problem because there are too man companies in the chocolate industry that would be majorly affected by the shortage. Plus since the supply will be down and the demand will be high, prices will end up rising, which is never any good for consumers.

  5. liangy Said,

    December 5, 2014 @ 3:02 am

    It is my first time to hear about the shortage of chocolate. I was attracted by this title. Although I don’t really feel about the change of the chocolate price, I should say it is a good example to show the exit of the market. If the cocoa farmer spend more money to plant the cocoa and spend more time on dealing with the disease and get even less money than they usually get. There is no need to stay in the market.

  6. misroka Said,

    December 7, 2014 @ 7:06 pm

    I think this is a great article to showcase the issue of firms entering and exiting the market. I think that many people don’t necessarily think about where chocolate comes from and because of that, don’t understand the real potential threat that there could be a future shortage. You did a great job providing an externality and I really think that helped to make your point even more clear.

  7. beloc Said,

    December 8, 2014 @ 2:44 pm

    Surprisingly enough, I had had a discussion about this very topic in my FYSM recently and I too became worried about the implications of a possible chocolate shortage in the future since I also am a fan of chocolate. And to realize that the exports of chocolate could also be affected by the recent outbreaks of Ebola is also troubling. I hope someone finds a way to fix this problem soon, before the chocolate is all gone

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