Investors are turning to the Amazon to help fix the cocoa shortage, according to Bloomberg.
Dennis Melka, a former Credite Suisse Group AG banker, is attempting to lead this revival, with backing from Latin American countries Ecuador, Brazil, and Colombia. His campaign is based in Peru.
West African farmers currently control the industry, providing 70% of cocoa. Given West Africa’s recent struggles — such as the Ebola crisis and drought — it has proven difficult for Africa to produce its usual amount of cocoa. Further, there has been a shortage of cocoa and its byproduct, chocolate, and a corresponding surge in price.
The price of the crop has continued to rise since 2011, and Bloomberg reports that it currently is at a high of $US2,900/metric ton.
While cocoa has become more sparse, demand for chocolate is only increasing. Americans consume the confection voraciously, and the entire globe’s sweet tooth is catching on, too.
The Amazon is also an ideal place for growing cocoa.
Since cocoa can only grow ten degrees from the Equator, Melka has claimed that cocoa in the Amazon is the Silicon Valley of chocolate.
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