Demand vs supply for cocoa plantation

Demand for a particular thing makes it a need for consumers and the demand which exceeds supply makes it dearer and then it becomes a want for people. Demand and supply equation for a particular product, commodity or people makes them precious in a market among people.
Take the example of the so-called necessary needs of mankind such as oil, gas, coal and iron which come from nature and known as natural resources. Our consumption of natural resources from years depletes the quantum of its availability as the demand for them widens supply squeezes.
 
As our natural sources deplete due to high demand and consumption we are vulnerable to their scarcity. Take the example of Cocoa as a commodity which is used mainly as a major ingredient for chocolate may be scarce in a few decades. The major producers of cocoa are some of the African countries of Africa and Ivory coast is the world’s topmost producer, Harvests have fallen drastically taking the commodity to a 3 decade high where as cocoa can not be produced in any climate as it can only be grown within 10 degree latitude of the equator
 Rain fall for plantation
Average rainfall between 1250-3000 mm. per annum, rain fall with a certain frequency is good.

Temperature
Minimum but around 200-250C is considered good for the crop.
Humidity
Humidity is good for the plants to grow but medium humidity is good for the plantation, In India Kerala is the highest producer where as coastal climate is conducive for cultivation
 Plants take 3 to 5 years mature and start yielding.
Cocoa beans are the chief raw materials for confectioneries, beverages, chocolates and India also produces cocoa but in small scale and it is never been recognized as a plantation crop.
 
World production is around 27 Lakh MT while India produces a fraction of the figure which is about 10,000 MT
 
Demand: There is a huge demand for the commodity while the supply is less which opens opportunities for framers to monetize by cocoa plantation.
By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 11,2011

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