Political Unrest Shifts the Supply Curve

According to our analysis a natural disaster that reduces supply reduces the quantity sold and raises the prices. Sometimes the same is true with disasters caused by human.

Chocolate Lovers fret over Ivory Cocoa

Political unrest overseas threatens to disrupt the supply of America’s sweetest temptations.

Fighting on the Ivory coast, which supplies 45 percent of the world’s cocoa, has sent cocoa prices soaring just as the harvest season begins and unless peacekeepers can bring order chocolate prices could soar as well.

There is hope that international pressure will quell the fighting said Ann Prendergast as analyst with Rf co a commodities trading company in New York If it’s doesn’t it’s going to be just horrible and there won’t be much cocoa coming out of the Ivory coast.

The most recent troubles began last week when Ivory the rebel-held towns in the nor them part of the country. That was followed by air strikes on a french camp that killed nine soldiers and an American.

Cocoa price rose 9.7 percent the steepest increase in five years……………

The surge could affect high end chocolate makers who rely on the price cocoa butter produced by the Ivory Coast said Prendergast. How much of an effect depends on peace efforts and the farmers.

As the price goes up farmers have motivation to do anything they can to get their product to the market, said Prendergast.

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