Odd Lots Lots More on the Parabolic Surge in Cocoa Prices
16 snips
Mar 29, 2024 
Javier Blas, a Bloomberg Opinion columnist and commodities market expert, delves into the cocoa price surge, which has reached a staggering $10,000 per metric ton. He explains how chronic underinvestment in cocoa supply has collided with financial speculation, driving prices sky-high. The conversation explores the imbalances in the cocoa industry, where producers earn little while others profit significantly. Blas also discusses the implications of these rising costs for chocolate lovers and the broader economic landscape.
AI Snips
Chapters
Transcript
Episode notes
Cocoa Price Surge
- Cocoa prices have surged due to increased demand and crop failures in West Africa.
- These failures stem from low prices, underinvestment, bad weather, and diseases like swelling shoot.
Cocoa Supply Challenges
- While Latin America and Indonesia may increase cocoa production, West African farmers won't due to low prices.
- Cocoa trees take five years to yield a decent crop, requiring significant investment.
Greenhouse Cocoa
- Tracy asks Javier if she should start growing cocoa in a greenhouse.
- Javier explains that cocoa trees require specific climate conditions and substantial investment, making small-scale production impractical.