The demand for cocoa in the E.C. Countries - Forecasts and policy implications
A considerable proportion of the world supply of cocoa beans is traded at the London Stock Exchange. The leading importer of cocoa is the European Community with a market share of roughly 50 percent. The supply originates predominantly in Latin America and in West Africa, where some countries depend heavily on cocoa for export revenues. The aim of this study was to explore how demand in the E.C. reacts to price changes and how this relationship may be used to further the revenue of producers. On average in the E.C., a price increase of 1 percent reduces cocoa consumption by 0.31 percent. At prices of 1983, cocoa consumption is forecast to increase by 0.69 percent annually due to rising income, changes in preferences and other factors. If producers were able to freeze supply at the 1981 - 1983 level, this would result in an annual price increase of 1.9 percent (above inflation) in the London exchange market, assuming that the E.C. is representative of the world.
| Main Author: | |
|---|---|
| Format: | biblioteca |
| Published: |
Oct-
|
| Subjects: | CACAO, DEMANDA, OFERTA Y DEMANDA, COMUNIDADES EUROPEAS, |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|