The Cocoa Trading Game From Ghana to Canada

Introduction For the next 30 minutes we will be acting out the cocoa trade from two different angles, the conventional system and the fair trade system. Each of you represents people along the path of the cocoa trade – from the farmers to the consumer.”  

Props Your booklets tell you what you need to know play your part. There is a job section, goal section, and supplies section, as well as notes about weather and information about a similar business or organization

Getting Ready First put on your hats Read through your brochures as a group – you have 5 minutes to do this Make sure you understand your role/expectation Then we will discuss the overall game as a class

Welcome to Ghana – a cocoa producing country in Africa Here are our Independent Cocoa Farmers in the country of Ghana – please stand up  They have to work independently because their farms are quite far away from each other. Their primary concern is selling enough beans, to make enough money to buy food for their families. They make standard beans and premium quality beans.

Welcome to Ghana – a cocoa producing country in Africa There are also Fair Trade Farmers in the country of Ghana – please stand up  They are working together at a Fair Trade Co-op they have combined their efforts and are meeting fair trade standards They hope to sell their beans at a fairer price and provide their families with a better life and more opportunities. They produce premium quality fair trade beans, and standard beans.

The Chocolate Companies There are two companies buying beans – the first is the Ginormous Chocolate factory, with their head office in New York – please stand up if you are part of this company  They are in the market for beans and produce chocolate bars that they need to sell. Ginormous can buy from any of the farmers, and they want well produced beans. This company has money to spend!

The Chocolate Companies The second company is Feel Good Chocolates, which is a Fair Trade Workers Coop in Nova Scotia – please stand up if you are part of this company  They, too, are in the market for beans and also produce chocolate bars that they need to sell. Feel Good can only buy from the fair trade co-op. They will be looking for well produced beans. This company has money to spend!

The Supermarkets There are two grocery stores buying chocolate bars: Groceries ‘ r ‘ Us (Loblaws) – please stand  Seboys (Sobeys) – please stand    They will buy well-made chocolate bars and sell them to consumers, in hopes of making a profit. They both have money to spend They are in direct competition with one another!

The Consumers The Consumers now need to stand up  They represent the Canadian public, who love chocolate – eating on average 5.5 kg of chocolate per person per year. They will be visiting both grocery stores to buy as much chocolate as they can with the money they have. They purchase independently from each other, and have different amounts of money to spend.

Playing the Game Some of you have start up funds, which include 10 cent, 20 cent, 50 cent, 100 cent ($1) and 1000 cent ($10) bills Make sure you count your $ and record them on your RECORD SHEET to determine your profit at the end

Playing the Game For those of you making beans or chocolate bars - it is important that you reproduce them as best as you can. The companies / supermarkets that you sell them too will be looking for quality product. = If there is writing on the beans or the bar, you need to reproduce it exactly The supplies that you have been given are all you get

Playing the Game There will be seasons that will affect your trading, so be aware of these changes. Seasons can affect the weather, consumer demand, etc. I will give you a bit of warning before I announce a season change and what has happened. It is important to start trading as soon as the game starts. If you are a farmer for example, you can start trading and making deals before you have produced all your beans.

And…………GO! Let’s Get Started! Season 1 Follow the instructions in your brochure Start producing and buying beans and bars Start buying and selling as soon as possible Supermarkets and consumers start telling the company what you want to buy from them And…………GO!

And…………GO! Season 2 There has been a DROP in the world cocoa price Many of the countries that grow cocoa beans have been producing more beans than ever There are TOOOOOOO many beans on the market Buyers – consumers and grocery stores can afford to be picky Fair trade company – Feel Good Chocolates - does NOT change their price Ginormous Company DOES change their price 1 cent for standard beans 2 cents for premium beans And…………GO!

And…………GO! Season 3 Black Pod disease has hit this season’s crop Half of the crop has been destroyed – FARMERS MUST DESTROY HALF OF WHAT THEY PRODUCED Lots of people want cocoa but less being produced Farmers, you can now re-negotiate your prices with the companies And…………GO!

Season 4 Consumers realize that Fair Trade is very important in the global economy This is all they now want to buy at their supermarkets And…………GO!

Total your profits and write it on the board *** Debrief *** What were the main problems for the farmers, for the production companies, the supermarkets, etc? Were trading alliances established? Were any groups tempted to join together? What were the advantages of the standard beans/bars compared to the premium quality beans/bars? What was the impact of the changes in the value of products? What did these changes represent? How did consumers’ choices affect the chain? Who had the power in the chain? How could the farmers earn more money/get more power? Is world trade fair????