Some Observations and Ideas About Agriculture, Economics, and Policy
Friday, February 13, 2009
Chocolate Lover's Nightmare...
The report in the WSJ on cocoa prices is instructive for people interested in basic economics. Demand for chocolate products is anticipated to be down due to the recession, yet this graph shows a relatively strong rally in cocoa markets:
What gives?? Supply disruptions due to tree disease issues in West Africa are the culprit. There is always two sides to a market.
I am the Larry Combest Endowed Chair of Agricultural Competitiveness at Texas Tech University and the Director of the Cotton Economics Research Institute. I specialize in behavioral economics, price analysis, trade and policy. My opinions expressed here are mine and not those of Texas Tech University.