5 ms·

How will Switzerland counter this change of events

WestOaklandfan 6y ago
How will Ghana counter the loss of a high quality cocoa buyer ?
fogihujy 6y ago
The first response will probably be for the chocolate producers to try to source the raw materials from other sources. This may or may not result in production ramping up elsewhere, or even new producers appearing as increased prices could make production financially viable in places it previously wasn't. Depending on how the markets react, prices may go up, and many of the really cheap brands could disappear from the shelves, or just have their fat/sugar contents increased. There's also a non-zero chance that new African brands will grab a part of the low-end of the market, with protectionist measures implemented to respond to them.
- eloisant 6y ago
  Considering Switzerland is less than 9 millions people, their total consumption is a drop in the ocean of the global market so I'm don't think protectionist measures would change much. And I don't see why the big markets (EU, US) would want to protect Swiss companies.
  - fogihujy 6y ago
    The big markets won't care about Swiss chocolate. It's far more likely that Swiss chocolate producers will simply focus on the high-end market and leave it at that. Now, if other African countries tried doing this to the EU and re. other raw materials on the other hand...
    - 300africans 6y ago
      It will eventually happen. In my opinion, in the medium term, from China pressure and them outcompeting Europe in Africa. Chinese are having more boots on the ground all across Africa compared to 20 years ago and one of their main focus is resource extraction. I don't think Europe will be able to dictate to the Chinese in 5 - 10 years in how to conduct their business there. Not that they can do that now either. One of the things to watch your for is the loss of control of west and central african currencies by the French
- ArkanExplorer 6y ago
  CO2 tariffs: https://www.bcg.com/publications/2020/how-an-eu-carbon-border-tax-could-jolt-world-trade https://www.bcg.com/publications/2020/how-an-eu-carbon-borde... Ghana's electricity supply is 51% fossil fuel, whereas Switzerland is 2.5%. But its a lot easier to build solar plants in Accra than in Bern... I think that Europe is at a fundamental disadvantage over the medium/long-term, due to the burden of its welfare states. Its surprising to see that taxes over basically all categories are lower in Ghana than in Europe (except corporate taxes). The minimum monthly aged pension is €6.60 in Ghana, vs €1,080 in Switzerland. Life expectancy is 20 years longer in Switzerland than Ghana, but the retirement age is only 4 years later. The end effect of these extremely early and generous pensions is that economies become stratified, to ensure that these pension payments are maintained, and taxes are heaped on individuals to pay for it. Europe needs a widespread increase of the aged pension age to 70, cease all migration from regions with high usage of welfare state service, and begin a large, multi-generational modular nuclear power plant building plan.
  - kwere 6y ago
    maybe we need a individual capitalization pension plan
  - ISL 6y ago
    My experience with corruption in Ghana suggests that the Swiss have some other key advantages. It is impossible to imagine a swiss policeman stopping every third car on the country's main highway and asking, "Where's my Christmas?" That said, the potential for Ghanaians to thrive is astounding. Incremental improvements will yield incremental gains. It is a tropical paradise emerging from the weight of poverty. Also, the mangoes are hands-down the finest I have ever tasted.
  - csomar 6y ago
    I think Switzerland is doing, overall, fine. France is the biggest abuser. They have a large bloated-welfare system that encourages people not to work; and they have a combination of impossibly high taxes and bureaucracy. If you look at this list, you'll know something is horribly wrong with these economies: https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio https://en.wikipedia.org/wiki/List_of_countries_by_tax_reven... The ones at the top are all European except for Cuba...

How will Ghana counter the loss of a high quality cocoa buyer ?

The first response will probably be for the chocolate producers to try to source the raw materials from other sources. This may or may not result in production ramping up elsewhere, or even new producers appearing as increased prices could make production financially viable in places it previously wasn't. Depending on how the markets react, prices may go up, and many of the really cheap brands could disappear from the shelves, or just have their fat/sugar contents increased. There's also a non-zero chance that new African brands will grab a part of the low-end of the market, with protectionist measures implemented to respond to them.

eloisant 6y ago
Considering Switzerland is less than 9 millions people, their total consumption is a drop in the ocean of the global market so I'm don't think protectionist measures would change much. And I don't see why the big markets (EU, US) would want to protect Swiss companies.
- fogihujy 6y ago
  The big markets won't care about Swiss chocolate. It's far more likely that Swiss chocolate producers will simply focus on the high-end market and leave it at that. Now, if other African countries tried doing this to the EU and re. other raw materials on the other hand...
  - 300africans 6y ago
    It will eventually happen. In my opinion, in the medium term, from China pressure and them outcompeting Europe in Africa. Chinese are having more boots on the ground all across Africa compared to 20 years ago and one of their main focus is resource extraction. I don't think Europe will be able to dictate to the Chinese in 5 - 10 years in how to conduct their business there. Not that they can do that now either. One of the things to watch your for is the loss of control of west and central african currencies by the French
ArkanExplorer 6y ago
CO2 tariffs: https://www.bcg.com/publications/2020/how-an-eu-carbon-border-tax-could-jolt-world-trade https://www.bcg.com/publications/2020/how-an-eu-carbon-borde... Ghana's electricity supply is 51% fossil fuel, whereas Switzerland is 2.5%. But its a lot easier to build solar plants in Accra than in Bern... I think that Europe is at a fundamental disadvantage over the medium/long-term, due to the burden of its welfare states. Its surprising to see that taxes over basically all categories are lower in Ghana than in Europe (except corporate taxes). The minimum monthly aged pension is €6.60 in Ghana, vs €1,080 in Switzerland. Life expectancy is 20 years longer in Switzerland than Ghana, but the retirement age is only 4 years later. The end effect of these extremely early and generous pensions is that economies become stratified, to ensure that these pension payments are maintained, and taxes are heaped on individuals to pay for it. Europe needs a widespread increase of the aged pension age to 70, cease all migration from regions with high usage of welfare state service, and begin a large, multi-generational modular nuclear power plant building plan.
- kwere 6y ago
  maybe we need a individual capitalization pension plan
- ISL 6y ago
  My experience with corruption in Ghana suggests that the Swiss have some other key advantages. It is impossible to imagine a swiss policeman stopping every third car on the country's main highway and asking, "Where's my Christmas?" That said, the potential for Ghanaians to thrive is astounding. Incremental improvements will yield incremental gains. It is a tropical paradise emerging from the weight of poverty. Also, the mangoes are hands-down the finest I have ever tasted.
- csomar 6y ago
  I think Switzerland is doing, overall, fine. France is the biggest abuser. They have a large bloated-welfare system that encourages people not to work; and they have a combination of impossibly high taxes and bureaucracy. If you look at this list, you'll know something is horribly wrong with these economies: https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio https://en.wikipedia.org/wiki/List_of_countries_by_tax_reven... The ones at the top are all European except for Cuba...