Essays on World Cocoa Industry Case Study

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The paper "World Cocoa Industry " is a perfect example of a Marketing Case Study. Ivory Coast ranks as the leading single producer and supplier of cocoa. The country produces about 30% of the total cocoa used in the whole world. This percentage exceeds what any other single producer contributes to the world market. This is approximately a total of the crop of 1,448,992 tones. The growing and production of cocoa is the greatest income earner for the Ivory Coast contributing to more than two-thirds of the total income received by the country.

Therefore, cocoa remains the backbone of the nation and a great income earner of the Ivory Coast up to date. Ivory Coast is the world’ s leading cocoa grower and supplier (Appiah 2004). PESTEL: The political space of the Ivory Coast contributes significantly to the growth of the cash crop with significant government investment witnessed in this sector. Economically, Ivory Coast relies heavily on this cash crop with many people growing cocoa for purposes of sustenance. The social culture of the citizens of this country is deeply rooted in farming with many people relying on the need for cash crops for survival.

This can be seen in the manner in which various citizens accept and rely on the cash crop for survival (Fold 2001). Growth in the technological sector has seen easy harvesting, drying, and processing of cocoa on the Ivory Coast, therefore improving its efficiency. Indonesia The growth of cocoa in Indonesia picked up in the late 1980s. Before this period, there was no significant emphasis on the need for growth of cocoa. Since 1990, cocoa has remained as one of the greatest income earners in the country.

The number of tones produced by Indonesia keeps on growing on an annual basis. For example, the figures shot  777,500 tons in the year 2013 and increased by 2% in 2016. However, the country has been grappling with the challenge of the crop borer insect which destroys the cocoa crops resulting in major losses. This challenge has impacted negatively cocoa crops produced by Indonesia in the last few years. Indonesia is a third-largest cocoa grower in the world (Fold 2001). PESTEL: The Indonesian government came up with policies and frameworks for cocoa farmers to have easy access to foreign markets.

This has been enabled by the robust government policy for the easy and free export of cocoa. The economic environment has however been less supportive with about 90% of cocoa growers being the small scale farmers with little financial capacity. Currently, Indonesia stands out as one of the top companies with great processing units courtesy of the improvement in technology. The legal framework operationalized in Indonesia is supported by the political goodwill to advance the easy trade of cocoa across the country’ s borders (Gallaway et al.

2003). Dominican Republic The Dominican Republic stands out as the world’ s leading ethical producer of chocolate and other cocoa products. The country is known for the two major types of cocoa which include the Sanchez and the Hispaniola varieties. One fundamental feature of the Dominican Republic is its leading position in “ Fair-Trade” production of cocoa. This implies the observance of better practices and policies of the production of cocoa. Progressive trends are seen in regards to the patterns of cocoa production in the country.

For example, the Dominican Republic produced a total of 68,021 tones in 2013.

References

Appiah, M. R. (2004). Impact of cocoa research innovations on poverty alleviation in Ghana. Ghana Academy of Arts and Sciences.

Blowfield, M. (2003). Ethical supply chains in the cocoa, coffee and tea industries. Greener Management International, (43), 15.

Fold, N. (2001). Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. Journal of Economic Geography, 1(4), 405-420.

Fold, N. (2002). Lead Firms and Competition in ‘Bi‐polar’Commodity Chains: Grinders and Branders in the Global Cocoa‐chocolate Industry. Journal of Agrarian Change, 2(2), 228-247.

Gallaway, M. P., McDaniel, C. A., & Rivera, S. A. (2003). Short-run and long-run industry-level estimates of US Armington elasticities. The North American Journal of Economics and Finance, 14(1), 49-68.

Grundy, T. (2006). Rethinking and reinventing Michael Porter's five forces model. Strategic Change, 15(5), 213-229.

Rice, J. F. (2010). Adaptation of Porter's five forces model to risk management. DEFENSE ACQUISITION UNIV FT BELVOIR VA.

Schrage, E. J., & Ewing, A. P. (2005). The cocoa industry and child labour. The Journal of Corporate Citizenship, (18), 99.

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