Premium Essay

Chocolate Industry in India

In: Business and Management

Submitted By adit567
Words 2481
Pages 10
-------------------------------------------------
AnaLysis of demand and supply of cocoa
Managerial Economics Study Project
September 25, 2015

September 25, 2015

Arjun K (PGP15069)
Arun Shashi (PGP1570)
Aditya Narvekar (PGP15093)
Saravana Raja Kumar T (PGP15107)
Sumit Chaurasia (PGP15115)
Arjun K (PGP15069)
Arun Shashi (PGP1570)
Aditya Narvekar (PGP15093)
Saravana Raja Kumar T (PGP15107)
Sumit Chaurasia (PGP15115)

Contents Introduction: 1 About Cocoa and the Cocoa Products industry: 1 Cocoa Prices Jump 30 Percent in 18 Months 1 Forecast of Chocolates: 2 Demand for Cocoa in the world: 2 Pricing in chocolates 5 Demand and Supply function 6 SUPPLY 10

Introduction:
When I was a kid, I enjoyed the dairy milk chocolate for 5 rs. It was perfect and heart-warming. Now after 15 years dairy milk offers a product which is almost half in quantity of the product back then. This generated a curiosity in us and we started to find answers based on the microeconomic perspective. We zeroed on this and found that the most crucial factor in the production of chocolate is cocoa. In this report we have analysed the demand and supply of cocoa and how it affects the price of chocolate. Our research findings and data are collected from various national and international reports.
About Cocoa and the Cocoa Products industry: Cocoa is a critical cash crop that is produced in a few specific regions of the world. Specific climatic conditions are necessary for the crop to grow. Travelling along a global supply chain, cocoa beans go through a complex production process that consists of the farmers, buyers, shipping companies, processors, manufacturers, and distributers. The cultivation process is delicate. This is because the trees are susceptible to the vagaries of weather, diseases and insects. The cocoa business is not like…...

Similar Documents

Premium Essay

Food Industry-Brand India

...Food Industry Last Updated: June 2012 Introduction The food services sector in India is expected to witness a 50 per cent increase in investments in 2012 to about US$ 750 million, as food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market. Of the total investments of US$ 750 million in 2012, about US$ 165 million has gone into purely front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms. India is the world's largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, 'Indian Dairy Industry Analysis'. The study anticipates that the milk production in India will grow at a compound annual growth rate (CAGR) of around 4 per cent during 2011-2015. Further, India has emerged as one of the largest potential markets for organic food consumption globally. The organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. We anticipate that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent. Indians spend US$ 64 billion annually on eating out, which includes $13 billion on eating in quick-service restaurants (QSRs) such as McDonald's and Costa Coffee,......

Words: 2109 - Pages: 9

Premium Essay

Slavery in the Chocolate Industry

...study Slavery in the Chocolate Industry raises systemic, corporate, and individual ethical issues with all the parties involved in the chocolate industry. Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other institutions within which business operate. (M. Velasques) Corporate issues in business ethics are ethical are ethical questions raised about a particular organization. These include questions about the morality of the activities, policies, practices, or organizational structure of an individual company taken as a whole. (M. Velasques) Individual issues in business ethics are ethical questions raised about a particular individual or particular individuals within a company and their behaviors and discussions. These include questions about the morality of the decisions, actions, or character of an individual. (M. Velasques) The farmers who are kidnapping or buying children on a “black market” type situation are displaying their individual ethical issues. They have no concern for the boy’s welfare, their only concern is to make a profit off the cocoa beans they farm. The systemic ethical issues raised in this case study are the public officials in the neighboring communities of the cocoa farmers who allow the sale of children and who take bribes from the farmers enslaving these children. The corporate ethics issue present in the case is with the large manufactures in the chocolate industry fighting the......

Words: 653 - Pages: 3

Premium Essay

Slavery in Chocolate Industry

...November 1st , 2010 TRM 409.01 BUSINESS ETHICS Case Study: “Slavery in the Chocolate Industry” Instructor: Perran Akan Student: Neşe Roman Student ID: 2006104603 From the perspective of Utilitarianism, child slavery contributes the economics position of the country. As I know, the economic situation of the country is bad, they are one of the third world countries. What is more, cocoa beans prices decreased in the year 1996 - 2000. So, farmers want to reduce the cost of production with cutting the wages and using slavery. According to Utilitarianism, the “right” action or policy is the one that will produce the greatest net benefits or the lowest net costs. From that point, they reduce costs, and maximize their net benefits from child slavery. The major difficulty with Utilitarianism is that it is unable to deal with rights and justice. For instance, from the point of social justice, it is clear that child slavery is the result of unequal distribution of burdens. Utilitarianism only looks at the utility, not the distribution of it among the members of society. The important ignorance on ethics in Utilitarianism, bring the consideration of justice and rights. Justice looks at how the benefits and burdens distributed among the society. On the other hand, rights look at the individual entitlements to freedom of choice and well being. From the rights point of view, there are no clues about the legal rights of the children. I do not think that government has labor or......

Words: 853 - Pages: 4

Premium Essay

Slavery Chocolate Industry

...3.0 Systemic, Corporate & Individual Issues Slavery in the chocolate industry case has systemic, corporate and individual ethical issues. Systemic Ethical Issue The substance incomes in worry ethics are ethical raised about the economic, sentiment, aggregation, and other institutions within which worry operate. It’s related to the economic system within many countries that rely to a great extent on many exports, including potable bonzes. In yr 1999 and 2000, food product bean prices are downward because the global aggression over which cook had no test. The fall was dictated by the global forces over which civil rights leader had no hold. With low-spirited prices, farmers turned to subjugation to try to disrupt Labor Party cost for their natural selection in this state. Several global deep brown giant companies dictate the prices of cocoa in the marketplace. As political cognitive content known as, not only our country dealing mercantilism with these other countries, and if we plosive consonant doing business with Dentin Glide & Ghana the other countries that also doing business with them, might be stop doing business with us. Besides that, there is another systemic issue related to legal aspect of practice in the chocolate diligence. Actually, a slavery farm is illegal in the Ivory Coast but the Laws are implemented is for the most part out of our control. But the government from their country had their own situation, shortage of social control officers, the......

Words: 614 - Pages: 3

Premium Essay

Chocolate Industry

....................................................... 6 Moral and human rights infractions ....................................................................................................... 7 Recommendations for cocoa and chocolate industry ............................................................................ 9 Challenges remaining for the cocoa and chocolate industry................................................................ 11 References ............................................................................................................................................ 13 Summary This report will illustrate the benefits of the largest chocolate manufacturers “big4”, and discuss the ethical concepts: consequentialism and utilitarianism for using child labor. Also, it will include the history of human rights and child labor, as well as the illegal practices of slavery. Finally we pinpoint to some possible recommendation for cocoa company and stockholders to aid to eliminate of slavery uses in chocolate industry also, identify some challenge that will face stockholders and the during implement the recommendations. The benefits of the “big4” This section will explore the advantages of four of the largest chocolate industry companies: Kraft, Nestle, Hershey and Mars. Also, it will include their Humanitarian projects and contributions which serve people around the world. Kraft Kraft Foods Inc is the largest confectionery, food, and Beverage......

Words: 3968 - Pages: 16

Premium Essay

Chocolate Industry

...high quality handmade chocolates in the Australian chocolate making industry. SI would come under the umbrella of the specialised chocolate makers who compete differently to the Large Chocolate manufacturers. The large chocolate manufacturers generally have large manufacturing facilities, manufacture in bulk and gain economies of scale. They compete primarily on reasonable quality product for a lower than average price to a large scale consumer market. Whereas the specialised chocolate makers compete primarily on quality products to a consumer who does not have price as the main criteria for choice. These fine chocolate makers cater to a niche market. The industry Chocolate making industry is 55% of the Australian Confectionary Industry of approximately $3.6 billion at around $2 billion. By industry standards SI’s market share at 2,3% or $44 million is relatively small. Value Chain SI: Purchase Cocoa beans-(Roasting, Chocolate making)-Product Development-Marketing (collaborations with other gourmet food mfgs)- Retailing(company owned outlets). Industry Segments In general industry segments are based on the characteristics of the product or service. Those products or services can be linked to customer/market segments. Industry segments in the chocolate making industry are Bars, Blocks, Boxed, Seasonal. If one looks at the timing when a majority 80% of boxed chocolates are sold one can see that it is during the same time that the seasonal chocolates are produced and......

Words: 1857 - Pages: 8

Free Essay

Chocolate Industry in Victoria

...further information Department of State and Regional Development Regional Industries Level 11, 55 Collins Street MELBOURNE VIC 3000 Tel + 61 3 9651 9486 Fax + 61 3 9651 9304 www.dsrd.vic.gov.au jane.baker@dsrd.vic.gov.au Small Business Victoria Level 5, 55 Collins Street MELBOURNE VIC 3000 Tel + 61 3 132 215 sbv@sbv.vic.gov.au http://www.sbv.vic.gov.au Confectionery Manufacturers of Australasia Level 2 PO Box 1307 689 Burke Rd CAMBERWELL VIC 3124 Tel + 61 3 9813 1600 Fax + 61 3 9882 5473 www.candy.net.au david@candy.net.au Food Science Australia Sneydes Road (Private Bag 16) WERRIBEE VIC 3030 Tel + 61 3 9731 3220 Fax + 61 3 9731 3201 www.foodscience.afisc.csiro.au ian.gould@foodscience.afisc.csiro.au William Angliss Institute of TAFE 555 Latrobe Street MELBOURNE VIC 3000 Tel + 61 3 9606 2111 Fax + 61 3 9670 1330 www.angliss.vic.edu.au info@angliss.vic.edu.au AUSTRADE HWT Tower Level 21, 40 City Road SOUTHBANK VIC 3006 Export Hotline 13 28 78 http://www.austrade.gov.au/ Victorian Food Industry Training Board Suite 10 Skipping Girl Place 651-653 Victoria St ABBOTSFORD VIC 3067 Tel + 61 3 9428 7744 Fax + 61 3 9428 9931 vfitb@vicnet.net.au http://www.foodindustrytraining.com.au/ Issued May 2001 The Industry in Victoria The Australian Confectionery Industry Food Science Australia Sales patterns The chocolate confectionery business is strongest in the colder months of the year and around special gift occasions such as Easter, Christmas, Mother’s Day and......

Words: 2396 - Pages: 10

Premium Essay

Slavery in the Chocolate Industry

...Slavery in the Chocolate Industry raises systemic, corporate, and individual ethical issues with all the parties involved in the chocolate industry. Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other institutions within which business operate. (M. Velasques) Corporate issues in business ethics are ethical are ethical questions raised about a particular organization. These include questions about the morality of the activities, policies, practices, or organizational structure of an individual company taken as a whole. (M. Velasques) Individual issues in business ethics are ethical questions raised about a particular individual or particular individuals within a company and their behaviors and discussions. These include questions about the morality of the decisions, actions, or character of an individual. (M. Velasques) The farmers who are kidnapping or buying children on a “black market” type situation are displaying their individual ethical issues. They have no concern for the boy’s welfare, their only concern is to make a profit off the cocoa beans they farm. The systemic ethical issues raised in this case study are the public officials in the neighboring communities of the cocoa farmers who allow the sale of children and who take bribes from the farmers enslaving these children. The corporate ethics issue present in the case is with the large manufactures in the chocolate industry fighting the......

Words: 305 - Pages: 2

Free Essay

Slavery in the Chocolate Industry

...Slavery in the Chocolate Factory 1. What are the systemic, corporate, and individual ethical issues raised by this case? First of all, this article was interesting to read because it pertains to ethical issues on several levels as we can see throughout and I personally never knew about slavery in the chocolate industry. From a systemic approach, ethical issues arise from the producer or farmers of the cocoa beans to the manufacturer of chocolate and ultimately the end consumer of the goods. As the media and formal documentaries have pointed out, the reason for child slavery in this industry is because farmers need to keep their costs down in order to meet the demand of the world’s chocolate consumption. This world consumption is the driving force that continues to sustain child slavery in areas like the Ivory Coast. We can see that some governmental action has tried to disrupt the systemic ethical issues that arise, but the problem continues today because the corporate level has a lot of political weight that adds to the problem. The corporate figures of our world including Hersey Foods Corp. and M&M Mars, Inc. continue to add to the problem of child slavery in the Ivory Coast. With self-interests in mind, these chocolate producing powerhouses unethically know that they are toying with legislation to give Americans the impression that they are actually attempting to solve the issues at hand. We can see from their lack of effort and extended deadlines to complete......

Words: 714 - Pages: 3

Premium Essay

Chocolate Industry

...Seasonality: The chocolate industry is highly seasonal where peak seasons of Easter and Christmas observe a sharp increase in sales. Therefore if externalities affect these periods it can be assumed that performance will be severely curtailed. The recent recession over the Christmas period impaired consumer spending therefore to mitigate the loss of sales it is essential to maximise them over the Easter period 2010. Failure of new products Numerous new product launches have failed over the past few years where many companies have adapted the strategy of re-launching old favourites to leverage on their brand equity and consumer recognition. Barriers to Entry The chocolate industry is synonymous with a number of large firms (Mars, Nestle and Cadbury) dominating the market, enjoying a well established history and therefore high brand loyalty. Consequently barriers to entry are high for existing incumbents and new entrants. Increasing Cost of Raw Products As cost of raw products rise such as cocoa, chocolate manufacturers are shifting their attention away from marketing strategies and instead focusing on the input processes of chocolate making as opposed to the output. Potential Partnerships Given a saturated market and a continuous increase of raw material prices, to remain competitive and keep costs down, creation of partnerships are potential business propositions for manufacturers. Growth of luxury segment of market Luxury dark chocolate brands have......

Words: 283 - Pages: 2

Premium Essay

Food Processing Industry in India

...FOOD PROCESSING IN INDIA Corporate Catalyst India A report on Indian Food Processing Industry 1. INDUSTRY OVERVIEW India is the world’s second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from 45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the total expenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation......

Words: 8652 - Pages: 35

Free Essay

History of Chocolate Industry

...History of chocolate industry A dissertation presented by Shan Lou To The Division of Chocolate Discovery In partial fulfillment of the requirements for the degree of Doctor of Philosophy In the subject of Chocolate Harvard University Cambridge, Massachusetts April 2013 Development and Functions of C-Low-Threshold Mechanoreceptors Put the abstract in this area. Remember the abstract should be less than 350 words. Table of Contents Development and Functions of C-Low-Threshold Mechanoreceptors ii Table of Contents iii List of figures iv Acknowledgments v Abbreviation vi Chapter I. Introduction vii Introduction 1 1 Introduction 2 2 Chapter II. The history of chocolate began in Mesoamerica 3 Chapter II. Abstract 4 Introduction 5 Results 6 A 6 B 6 b 6 Discussion 7 Methods 8 A. 8 Acknowledgement 9 Chapter III. 10 Chapter III. Abstract 11 Introduction 12 A 12 B 12 Results 13 Method 14 Chapter IV Discussion 15 Index 16 References 17 List of figures Number Page 1. 12 2. 13 3. 14 4. 16 5. 17 6. 18 7. 21 8. 24 9. 28 10. 36 Acknowledgments The author wish to thank the person who firstly made this template ( Abbreviation DRG. Dorsal Root Ganglia VGLUT3. Vesicular glutatemate 3 C-LTMR. C- tactile Low Threshold Mechanoreceptors E. e. F. f. G...

Words: 342 - Pages: 2

Premium Essay

Fmcg Industry India

...ANALYSIS OF FMCG INDUSTRY IN INDIA IIM – LUCKNOW, IPMX (2015-16) MANAC PROJECT (TERM I) – GROUP 11 FOR SUBMISSION TO PROF. PRAKASH SINGH Compiled By: 1. Prateek Dashora (IPMX08035) 2. Shreyas Bakshi (IPMX08047) 3. Siddhartha Chatterjee (IPMX08049) 4. Supriyo Chakraborty (IPMX08051) 5. Susmit Majumdar (IPMX08054) TABLE OF CONTENTS Table of Contents Choice of Industry: FMCG............................................................................................................................................................................................ 2 Macro Factors Affecting the Industry ................................................................................................................................................................. 4 Industry Characteristics.............................................................................................................................................................................................. 6 Major Accounting Policies of the Industry ................................................................................................................................................... 10 Impact of IFRS .......................................................................................................................................................................................................................

Words: 4885 - Pages: 20

Premium Essay

Mapping of Chocolate Industries in Bangladesh

...Bangladesh’s chocolate industry has not grown significantly even after a certain industrial revolution. At present we need to rely on foreign chocolate brands. Different chocolates of Cadbury, Hershey’s, Mars, Snickers, KitKat, Alpenliebe, Toblerone, Eclairs, Munch are few most preferred chocolates in Bangladesh. But unfortunately none of these are local product. We couldn’t develop our chocolate industry much. The reason behind that is lack of interest of customers about chocolate. Marketers could realize that the customer’s demand for chocolate in Bangladesh is not that much high. That’s why this industry failed to grow significantly. However, in recent times the demand of chocolate has increased much. From various report, we could see that the demand of chocolate in Bangladesh has increased over past 5 years, even though the demand is fulfilled by foreign brands. Realizing the demand of customer, many local companies have shown interest to manufacture quality chocolates in Bangladesh. As a result, now we have few local brands in market even though the preference for those chocolates couldn’t meet the expectation. Basically, the quality of local chocolates is not enough to compete with other international brands. Here are few examples of local brands- Pran Eclairs, Pran Layer, Choco Bean, Choco Choco, Milky stick, Gems, Pearls, 2in 1 éclair, Fruto Toffee, Treat Chocolate Bar, Treat Peanut Bar, Cocola Bar, Cocola Frutics, Olympic Choco Funn, Olympic Creamy Caramel, Elson......

Words: 779 - Pages: 4

Premium Essay

Slavery in the Chocolate Industry

...Slavery in the Chocolate Industry Forty-five percent of the chocolate we consume in the United States and in the rest of the world is made from cocoa beans grown and harvested on farms in the Ivory Coast, a small nation on the western coast of Africa. Few realize that a portion of the Ivory Coast cocoa beans that goes into the chocolate we eat was grown and harvested by slave children. The slaves are boys between 12 and 16—but sometimes as young as 9—who are kidnapped from villages in surrounding nations and sold to the cocoa farmers by traffickers. The farmers whip, beat, and starve the boys to force them to do the hot, difficult work of clearing the fields, harvesting the beans, and drying them in the sun. The boys work from sunrise to sunset. Some are locked in at night in windowless rooms where they sleep on bare wooden planks. Far from home, unsure of their location, unable to speak the language, isolated in rural areas, and threatened with harsh beatings if they try to get away, the boys rarely attempt to escape their nightmare situation. Those who do try are usually caught, severely beaten as an example to others, and then locked in solitary confinement. Every year unknown numbers of these boys die or are killed on the cocoa farms that supply our chocolate. The plight of the enslaved children was first widely publicized at the turn of the twenty-first century when True Vision, a British television company, took videos of slave boys working on Ivory Coast farms and......

Words: 2912 - Pages: 12