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Introduction: Making Chocolate from Cacao Seeds
Selling Cacao Can Be Risky
Cacao farmers sell their product to chocolate-processing companies through traders at the Coffee, Sugar, and Cocoa Exchange (similar to a stock exchange). Actually, these farmers get a contract for their crop before it is even harvestedthis is called trading on the futures market.
The final price for cacao isnt determined, though, until the crop comes in and is quality inspected.
Cacao prices rise and fall with production and demand.
Like other agricultural products, cacao experiences highs and lows in the world market. A rise in consumer demand for chocolate, or a decrease in cacao production due to disease, drought, or political disruption, drives prices up.
But when farmers grow more cacao than consumers will buy, cacao prices fall. Falling prices not only hurt the farmer, they can devastate a countrys economy if it relies heavily on the sale of cacao.
Continue to Manufacturing Chocolate Blends Art and Science
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The government of the Ivory Coast estimates that the livelihood of half of the countrys 14 million people is directly or indirectly tied to cacao production. |
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