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Supply shortages and signs of growing demand are driving cocoa prices 14 Aug 2025, 11:58
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Karanzzz11
While I understand this.

However in the question also there is a talk about processing cocoa as the first stage in making chocolate and if European and North American companies have increased processing capabilities will also increase the demand of cocoa beans and we know that if the demand is high and the supply is low(which is clearly known by the premise established) doesnt it make the price high?

I used this approach and marked B as the correct option. Can you explain how my reasoning is incorrect.
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It's important to keep in mind that manufacturers that use cocoa (for example, factories that process cocoa for chocolate) do not SUPPLY cocoa. Instead, such manufacturers purchase cocoa to make other stuff, such as chocolate.

Improving processing capacity might lower costs for those manufacturers, but who knows whether those savings will be passed on to consumers. Hershey, for example, might leave chocolate bar prices the same and just pocket the extra profit. Just because Hershey improves its processing capacity does not automatically mean that Hershey will demand more cocoa from suppliers.

Sure, it's possible that the recent improvements in processing capacity help explain the first-quarter rise in cocoa grinding, but the data itself (the percent rise in grinding of cocoa beans) is already given in the passage. Knowing why the data is true is interesting trivia, but it doesn't strengthen the argument.

And even if (D) helps explain the current production levels, there is no reason to believe the production will CONTINUE to rise.

I hope that helps!
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Supply shortages and signs of growing demand are driving cocoa prices 18 Oct 2025, 20:59
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For price to increase : Supply must remain low & Demand must Increase.
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Supply shortages and signs of growing demand are driving cocoa prices 07 Dec 2025, 01:34
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Could someone please help me understand option D, can I mark it as irrelevant?
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Supply shortages and signs of growing demand are driving cocoa prices 07 Dec 2025, 10:28
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AditiDeokar
Could someone please help me understand option D, can I mark it as irrelevant?
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Hi

(D) is rather opposite, (D) means govt. could lower price if imports increase supply, so it weakens, not strengthens.
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Supply shortages and signs of growing demand are driving cocoa prices 28 May 2026, 12:09
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Hi. Sorry if this is too specific. Answer choice C states that It takes NEW cocoa trees five or six years before they start bearing fruit. The passage mentions nothing about the cocoa trees dying or about new trees being planted. This leads me to believe that the old cocoa trees just won't bear fruit until the weather improves.

What do the new trees have anything to do with this? How am I supposed to assume that there are even new trees planted when it's not stated in the passage. For all we know they didn't plant anything at all.

I picked B and I understand that it's wrong but it seemed to at least potentially address a projected increase in demand. It feels like C is moot because of the word new. Thanks!
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Supply shortages and signs of growing demand are driving cocoa prices 29 May 2026, 14:30
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Texxascow
Hi. Sorry if this is too specific. Answer choice C states that It takes NEW cocoa trees five or six years before they start bearing fruit. The passage mentions nothing about the cocoa trees dying or about new trees being planted. This leads me to believe that the old cocoa trees just won't bear fruit until the weather improves.

What do the new trees have anything to do with this? How am I supposed to assume that there are even new trees planted when it's not stated in the passage. For all we know they didn't plant anything at all.

I picked B and I understand that it's wrong but it seemed to at least potentially address a projected increase in demand. It feels like C is moot because of the word new. Thanks!
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The word new does not mean we must assume new trees were already planted.

Its point is different: if producers try to increase cocoa supply in response to high prices, planting more trees will not help soon because new trees need five or six years to bear fruit. So C supports the idea that supply cannot quickly expand in the near future.

You are right that old trees may produce more once weather improves, but C still strengthens because it rules out one major quick supply response: rapidly increasing production by adding new trees. B only shows greater processing capacity; it does not show that cocoa demand will stay high or that supply will remain tight.
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