OK, so maybe it’s not as much a crisis as an overwrought reading of the basics of supply and demand. In debunking the fear that the world will run out of chocolate by 2020, Snopes.com pointed out that we are really experiencing a chocolate deficit, which just means the world is eating more chocolate than it is making. “Historically, such circumstances don’t lead to a complete dearth of a product or foodstuff; rather, scarcity simply tends to drive prices skyward and reduce consumption of any given newly-scarce commodity,” Snopes wrote.
And if you weren’t soured enough by the prospect of prohibitive chocolate prices, a look at domestic sugar will seem like a trip to the dentist. As this Reuters graphic shows, the disparity in prices between what the US and the rest of the world pay has grown this year, with American companies currently forking over about 50 percent more for raw sugar futures.
NAFTA is to blame, Quartz’s Svati Kirsten Narula explains. In the 1990s, the US never imagined that Mexico would become a player in the sugar game, so Mexico was excluded from the tariffs and quotas that other sugar-producing nations faced over the years. As this Reuters graphic shows, since the final trade barriers came down in 2008, production of sugar from non-US processors and refiners has nearly quintupled.
US food manufacturers were facing an additional $2.4 billion in sugar costs before the two countries reached an agreement in October. It should be interesting to see how prices react to a newly-leveled playing field; for now, the commodities that supply your sweet tooth seem stable. Though truth be told, you’d be better off having an apple, or maybe some baby carrots. And a little exercise wouldn’t hurt.
source: interaksyon.com
