Tuesday, January 25, 2011

Cocoa Prices

According to many news sources the prices of chocolate may be taking a sharp increase in the near future. The main reason comes from political uncertainty in areas that produce most of the worlds cocoa.  Some have argued that part of the problem in these countries can actually be traced back to the production of cocoa, others disagree.  All I can say for sure is uncertainty seems to breed caution in the global market, and caution often leads to price increases.

Price increases in the cocoa market can lead the chocolate makers into one of two directions.  They will either increase the price of chocolate, which in my opinion is the best option.  Or they will decrease the amount of cocoa in their product, which in my opinion is a horrible idea.  I think if things get worse people should brace for higher priced cocoa and take this opportunity to enjoy cocoa as an indulgence.  Eat smaller amounts, but make sure the stuff you're eating is of high quality.

Click here to read one report about cocoa prices.

Click here to read another.

Click here to read an argument from German Confectioners that claim things will be OK.

CC

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