Cocoa Duck Won Lee Jun Ho Kang
History of the trading of cocoa <ul><li>Cacao tree </li></ul><ul><li>   Native to the Americas </li></ul><ul><li>   Live...
Country Amount produced Percentage of world production Côte d’Ivoire 1.3 million tonnes 37.4% Ghana 720 thousand tonnes 20...
Product pricing <ul><li>Price range: </li></ul><ul><li>Started with $600 per ton in 1970 </li></ul><ul><li>Over $3000 per ...
Conditions responsible for price change <ul><li>Political instability </li></ul><ul><li>Bad weather </li></ul><ul><li>Deve...
Case study: “Cocoa price hits 14-year high” <ul><li>2002 March, 11 </li></ul><ul><li>Reported by BBC News </li></ul><ul><l...
Industry Groups/Trade Agreements <ul><li>Industry Groups </li></ul><ul><li> WCF (World Cocoa Foundation) </li></ul><ul><l...
Existence of speculators? <ul><li>Speculators: </li></ul><ul><li>People who buy certain goods expecting a rise  </li></ul>...
Websites used <ul><li>&quot;About the World Cocoa Foundation.&quot;  World Cocoa Foundation . World Cocoa Foundation. 3 No...
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Cocoa Commodities Project Duck Won and Jun Ho

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Cocoa Commodities Project

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Cocoa Commodities Project Duck Won and Jun Ho

  1. 1. Cocoa Duck Won Lee Jun Ho Kang
  2. 2. History of the trading of cocoa <ul><li>Cacao tree </li></ul><ul><li> Native to the Americas </li></ul><ul><li> Lives in a limited geographical zone </li></ul><ul><li> Nearly 70% of the world crop in West Africa </li></ul><ul><li>Where is it produced? </li></ul><ul><li>Who produces this product? </li></ul><ul><li>Where is it traded? </li></ul><ul><li> London & New York </li></ul><ul><li>What goods are made from this primary product? </li></ul><ul><li> Chocolate </li></ul><ul><li> Hot Chocolate </li></ul><ul><li> Chocolate powder </li></ul>
  3. 3. 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%
  4. 4. Product pricing <ul><li>Price range: </li></ul><ul><li>Started with $600 per ton in 1970 </li></ul><ul><li>Over $3000 per ton in 2008 July </li></ul>Cocoa price in 1970 Cocoa price in 2008 Fluctuations in price World prices and production of cocoa (from 1971/72 to 2005/06)
  5. 5. Conditions responsible for price change <ul><li>Political instability </li></ul><ul><li>Bad weather </li></ul><ul><li>Development in technology </li></ul><ul><li> Fertilizer, spray machines </li></ul><ul><li>Major increase in population </li></ul><ul><li>Better living standard </li></ul><ul><li> Good health </li></ul><ul><li> Increase in labor days </li></ul><ul><li>Education </li></ul><ul><li>Influence from other countries </li></ul>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!
  6. 6. Case study: “Cocoa price hits 14-year high” <ul><li>2002 March, 11 </li></ul><ul><li>Reported by BBC News </li></ul><ul><li>Cocoa price rose nearly 70% since 2001 Sep. </li></ul><ul><li>Main cause: </li></ul><ul><li> Political instability </li></ul><ul><li>Bad weather </li></ul><ul><li>Related products affected </li></ul>
  7. 7. Industry Groups/Trade Agreements <ul><li>Industry Groups </li></ul><ul><li> WCF (World Cocoa Foundation) </li></ul><ul><li> Nestle </li></ul><ul><li>Trade Agreements </li></ul><ul><li> Cocoa Protocol </li></ul>
  8. 8. Existence of speculators? <ul><li>Speculators: </li></ul><ul><li>People who buy certain goods expecting a rise </li></ul><ul><li>in price and sell when the price increases, but </li></ul><ul><li>mostly do not have interest in consuming </li></ul><ul><li>Especially active in food markets </li></ul><ul><li>London (2008 Feb, 04): Reported by AFX News Limited </li></ul><ul><li>Cocoa price increased by 24% </li></ul>WRRRRRRRRRRRRRY (Sinister laughter)
  9. 9. Websites used <ul><li>&quot;About the World Cocoa Foundation.&quot; World Cocoa Foundation . World Cocoa Foundation. 3 Nov. 2008 <http://www.worldcocoafoundation.org/default.asp>. </li></ul><ul><li>Cleveland, Cutler J., ed. &quot;Environmental change and socioeconomic factors in Africa.&quot; The Encyclopedia of Earth . 26 Aug. 2008. 3 Nov. 2008 <http://www.eoearth.org/article/environmental_change_and_socioeconomic_factors_in_africa>. </li></ul><ul><li>&quot;Cocoa price hits 14-year-high.&quot; BBC News . 11 Mar. 2002.3 Nov. 2008 <http://news.bbc.co.uk/2/hi/business/1866978.stm>. </li></ul><ul><li>&quot;Cocoa Protocol.&quot; Wikipedia . 26 Oct. 2008. Wikimedia foundation. 31 Oct. 2008 <http://en.wikipedia.org/wiki/cocoa_protocol>. </li></ul><ul><li>&quot;Cocoa.&quot; Wikipedia . Oct.-Nov. 2008. Wikimedia Foundation. Oct.-Nov. 2008 <http://en.wikipedia.org/wiki/cocoa>. </li></ul><ul><li>Ellis, Jamie. &quot;International Effect on Cocoa Prices.&quot; Whiskey & Gunpowder . 11 Feb. 2008. 3 Nov. 2008 <http://www.whiskeyandgunpowder.com/archives/2008/20080211.html>. </li></ul><ul><li>&quot;International Cocoa Initiative.&quot; Wikipedia . 28 Feb. 2008. Wikimedia foundation. 31 Oct. 2008 <http://en.wikipedia.org/wiki/international_cocoa_initiative>. </li></ul><ul><li>&quot;Softs - Speculator buying sends coffee, cocoa, to fresh multi-year highs.&quot; Forbes . 04 Feb. 2008.3 Nov. 2008 <http://www.forbes.com/feeds/afx/2008/02/04/afx4610878.html>. </li></ul>

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