Confused by the price of chocolate

Today dear readers, I am a little confused.

For the last few months, we have been  following news coming form the Ivory Coast very closely and something occurred to me over the weekend.

 

When countries supplying the world with oil are a touch turbulent (e.g. Iraq / Libya ….) oil prices soar.

Over a third of the world’s cocoa comes from a country embroiled in horrific violence in what is being described as civil war. Hundreds are dying, the UN is intervening but my chocolate bar stays the same price. I don’t get it. I am sure there is an economist who can explain what is happening but I simply don’t understand.

You can read the latest from the BBC World news here

One thought on “Confused by the price of chocolate

  1. I am not an economist, but I would hazard a guess that prices stay reasonably stable because cocoa is a luxury commodity, whereas oil is a necessity; so there may be less cocoa coming out of Ivory Coast, but not many will notice… whereas oil companies know that people are terrified of a lack of oil so can raise prices based on people’s fear, knowing we will pay because we have to pay. It will also be to do with the vast amounts of money that is ‘speculated’ on oil companies values. If our cars ran on chocolate things may be the same for cocoa..

    Also, I am sure that cocoa markets are so fragile that if suppliers put their prices up, the cocoa buyers would simply go elsewhere. Prices won’t go up – though they should – and cocoa growers revenue will go down. It is not looking good for growers in Ivory Coast.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s