Sunday, July 25, 2010

Cocoa Fix

A little snippet in this morning’s news, A mystery London buyer [buyers] has just about cornered the entire global cocoa market. These hedge funds give them a monopoly. Cocoa prices have more than doubled since 2007. That combined with weak harvests from West Africa suggest a massive hike in prices for the consumer.

I’ve said before I’m a bear of very little economic brain. It seems, however, to me unfair, indeed immoral that a few speculators can make such a great killing at the expense of both producers and consumers. Shortage of supply and political instability means making finanicial gain by commodity trading even easier. None of the profit will filter down to the growers. The consumer can make a choice not to purchase, but for the farmer it’s harder. To switch crops is difficult and even if possible takes time.

Where is Robin Hood while these robber barons rule the roost? I know it's easy to huff and puff about these things. But! It just don't seem right.

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