Evening star., 1933-05-28
Cocoa Industry Is Affected
By Proposed Control Plan
BY HARDEN COLFAx.

An American industry involving more
than 85000,000 annually may be af-
fected by the proposed plan to control
the worlds output of cocoa, with the
object of increasing prices, which the
British government has been asked to
consider by the planters of Trinidad,
one of the leading producing regions.
| The American consul at Port-of-
| Spain, Trinidad, reports to the Depart
ment of Commerce that this plan con-
| templates an agreement by the pro-
ducers of the British crown colonies,
chiefly those in West Africa, as we'll as
by Brazil. which together control some
80 per cent of the worlds output of
cocoa.
The agreement proposed would in
clude the establishment of holding
organizat ton, to be known as "Z" The
cocoa of all the producing areas judged
by u" to be superf1uous would be taken
over by it and released for sale only If
the price should exceed the figure set
by "z."
1t is predicted that at the end of the
cocoa crop year 1928 the production
and reserves in sight will be some 80,-
600 tons in excess of consumption, an
excess equal to approximately is per
/ cent of the worlds normal output.
! While at present there seems to be
no hope of increased consumption,
owing to decreased purchasing power in
the principal consuming countries, a
survey made by the British Empire
marketing board expressed the opinion
that the world, particularly the United
States. where cocoa and chocolate are
in great popular favor, Is capable Of alb
sorbing substantially larger amounts OF
cocoa"
The American cocoa industry, which
would be affected by any world agree
ment as to curtailment of production
and regulation of prices, handles three
principal products of the cocoa, or
| cacao, bean-chocolate, in confectionery
end general cookery: chocolate coatinss
and cocoa butter. The Census Bureau
estimates that there are now in the
! country some so establishments en-
gagged in manufacturing cocoa goods,
paying out nearly S7,000,000 in wages
annually and making use of raw prod
ucts to total value of more than S4O,-
| 900, 1000. We do not import much OF
| the finished products-only compara-
lively small quantities from Holland
and Switzerland.
X 4 X X
The prices which cocoa producers
| IIlc WOl III llatC bSStA ~
ceiving for their output have shown
marked declines during the last few
years and the government of more than
one British colony has approached the
Empire Marketing Board in London for
help. Cocoa is a tropical crop. Its
cultivation is almost entirely confined
| to the British colonies in West Africa
| and the West Indies and Brazil, al
though Dutch and French colonies also
produce some The United States is
| by far the largest consumer of cocoa,
with Germany and the United Kingdom
coming next, Most of our imports
come from British West Africa and
Brazil. We export finished products
principally to Canada, Cuba, the
Philippines, Panama and Newfound-
| land.
In spite of the great difficulties en-
countered in attempting to carry out
production and price regulation schemes
| for rubber coffee and sugar. the cocoa
| industry believes It can bring about q
real control plan British colonial