Cocoa Industry Crisis
The cocoa industry is facing a crisis due to a surge in prices, with cocoa beans reaching record highs. This is largely driven by a collapse in production in West Africa, where 70% of the world’s cocoa is grown.
Cause of the Crisis
- Collapse in production in West Africa, particularly in Ghana and the Ivory Coast, where production fell by 22% and 27% respectively last year.
- Disease, such as cocoa swollen shoot, affecting cocoa trees.
- Unsustainable farming practices, including deforestation and soil degradation.
- Climate change, leading to crop losses and reduced yields.
Impact of the Crisis
- Price increases being passed on to consumers, with chocolate becoming more expensive.
- Reduced profit margins for manufacturers, such as Nestle.
- Cocoa farmers struggling with crop losses and low wages, with many earning only €6 cents per bar of chocolate.
- Deforestation and environmental degradation due to unsustainable farming practices.
Alternative Solutions
- Planet A Foods, a company that has developed a chocolate alternative made from sunflower seeds, which is more sustainable and avoids issues with cocoa supply chains.
- Ecuador’s producer model, which allows farmers to sell their cocoa freely on the market, resulting in higher prices and more efficient farming methods.
Future Outlook
The cocoa industry needs to adapt to a warmer world and invest in sustainable farming methods to ensure fair yields in the future. Incentivizing farmers to use greater amounts of inputs, such as fertilizers, and increasing yields will benefit both farmers and chocolate consumers.
Key Vocabulary
Term | Definition | Example Usage |
---|---|---|
Cocoa Industry | The sector involved in the production, processing, and distribution of cocoa beans and related products. | The cocoa industry is facing a crisis due to a surge in prices. |
Cocoa Swollen Shoot | A disease affecting cocoa trees, causing them to become deformed and reducing their yield. | Disease, such as cocoa swollen shoot, is affecting cocoa trees in West Africa. |
Deforestation | The clearance of forests, usually as a result of human activities like agriculture or urbanization. | Unsustainable farming practices, including deforestation, are contributing to the crisis in the cocoa industry. |
Climate Change | The long-term warming of the planet due to an increase in average global temperature, leading to more extreme weather events and changes in weather patterns. | Climate change is leading to crop losses and reduced yields in the cocoa industry. |
Sustainable Farming | Agricultural practices that prioritize the long-term health and productivity of the land, minimizing harm to the environment and ensuring fair labor conditions. | The cocoa industry needs to adapt to a warmer world and invest in sustainable farming methods. |
Supply Chain | The network of organizations, people, and activities involved in the production and delivery of a product or service. | Planet A Foods has developed a chocolate alternative that avoids issues with cocoa supply chains. |
Producer Model | A business model in which farmers or producers have more control over the production and sale of their products, often resulting in higher prices and more efficient farming methods. | Ecuador’s producer model allows farmers to sell their cocoa freely on the market, resulting in higher prices and more efficient farming methods. |
Watch The Video
Vocabulary Quiz
1. Which word means ‘a significant increase in amount or degree’ in the context of the cocoa industry crisis?
A) Collapse
B) Degradation
C) Surge
D) Deforestation
2. What is the term for ‘the act of removing trees from an area’ which is contributing to the crisis in the cocoa industry?
A) Soil degradation
B) Climate change
C) Disease
D) Deforestation
3. Which phrase means ‘methods or practices that do not harm the environment and can be maintained at a certain level over time’ in the context of the cocoa industry?
A) Unsustainable farming practices
B) Crop losses
C) Reduced yields
D) Sustainable farming methods
4. What is the term for ‘a payment or benefit given to someone to encourage them to do something’ which could be used to encourage farmers to adopt sustainable practices?
A) Incentive
B) Input
C) Yield
D) Margin
5. Which word means ‘a person who grows or produces food, especially on a farm’ in the context of the cocoa industry crisis?
A) Manufacturer
B) Consumer
C) Farmer
D) Producer
Answer Key:
1. C
2. D
3. D
4. A
5. C
Grammar Focus
Grammar Focus: Causative Verbs and Passive Voice
Grammar Quiz:
- Which of the following sentences uses the passive voice correctly?
- The company will launch the new product.
- The new product is being launched by the company.
- The new product launches the company.
- The company launches the new product.
- Choose the correct form of the causative verb to complete the sentence: “The surge in prices ____________________ by a collapse in production.”
- is drive
- is driven
- drives
- are driving
- Identify the correct passive voice construction: “The cocoa trees ____________________ by disease.”
- are affect
- are affected
- affect
- affected
- Which sentence uses a causative verb correctly?
- The farmer grows the crops.
- The crops are grown by the farmer.
- The farmer has the crops grown.
- The crops grow the farmer.
- Select the correct sentence that demonstrates the use of the passive voice to emphasize an action:
- The manufacturer increased the price.
- The price was increased by the manufacturer.
- The price increases the manufacturer.
- The manufacturer is increasing.
Answer Key:
- Answer: b) The new product is being launched by the company.
- Answer: b) is driven
- Answer: b) are affected
- Answer: c) The farmer has the crops grown.
- Answer: b) The price was increased by the manufacturer.