Commodity Trade Questions Essay Example | Topics and Well Written Essays - 1500 words - 1

Commodity Trade Questions - Essay Example tions. Question two-International cocoa trade Types of cocoa production Cocoa produced in tropical or semitropical areas. Such climates found in Asia, Africa, and Latin America who form the principal producers of cocoa. The types of cocoa production are small-scale or large-scale production. An estimated 70% of world cocoa production comes from small-scale farmers. The number of small-scale farmers estimated to be 2.5 million with a yield of about 350kg per hectare. In this case, every farmer owns around 3 hectares (Interfax, 2011). Only 30% of cocoa production comes from large-scale farming. The leading countries in cocoa are West African countries as Ghana, Cote D’Ivoire, and Indonesia, forming 70% of the total coffee production. The other 30% collectively come from Asia, Latin America, Nigeria, Brazil, Cameroon, Malaysia, and Ecuador. By-products of cocoa The principal by-product of cocoa is chocolate. However, cocoa is processed to produce many other products such as Berge nfield cocoa powders, Bergenfield coffee cacao nibs, cafiesa cocoa products, chocolate covertures, dried fruit, edible nuts, and seed flour. Other products include organic cocoa products such as spices, extracts and emulsifiers, sugars, stevia, and sweeteners. Some toppings, sauces, drops, snacks, and cold pickings are by-products of cocoa. Consumption patterns Demand level determines consumption pattern, and the volume of cocoa processed each year judges the demand. Two-thirds of all cocoa, ground in the chocolate consuming countries, where, the US is the world’s largest consumer of chocolate. The consumption level followed decreasingly: by Germany, United Kingdom, and France, Russian Federation, Japan and Brazil. International transportation and trade on the markets. The Cocoa Producers Alliance (CPA) eliminates international transportation of 10% of the cocoa production due to low-grade cocoa. Markets have agreed to destroy non-quality cocoa. This is made possible by intro ducing levies on farmers and exporters to finance the destruction plan and compensate growers for their losses. Only quality cocoa products transported internationally and traded. Question three- standard clauses Odd day clause- A clause that states that any month containing an odd number of days, the middle day recognized as belonging to both halves of the month. Arbitration clause- Any misunderstanding arising out of the contract referred to court of arbitration in London, or elsewhere (as agreed) in accordance to the rules of arbitration (Interfax, 2011). The appeal of the trade organizations takes effect at the date of the contract and of which both parties deemed to be cognizant. International conventions clause- it is a clause holding tree rules: The uniform law on sales and the uniform law on formation given by the uniform law on international sales act, shall not apply to the contract. The United Nations convention on contracts for the international sale of goods of 1980 sha ll not apply in the contract. The United Nations convention on the limitation period in the international