Factors of Production Hershey's Chocolate

Factors of Production

by Michelle Woo and Mariya Teslya

Costs

Benefits

• cocoa industry
• health benefits

Sugar

• Deforestation
• Habitat loss
• Soil degradation
• Obesity

Capital

This is a machine used to harvest sugar cane.

Production

Cocoa Powder

The Workers (Labor)

Where Sugar Cane is Grown

Nicaragua exports 40% of its sugar crop to the U.S.

Chocolate Liquor

• Chronic Kidney Disease (CKD)--> killed at least 20,000 people in South America in the last decade
• On average, they live till 49
• Forced to work in slave-like conditions

Main Producers:

• Brazil
• India
• China
• Mexico
• Australia
• Thailand
• Pakistan
• United States

Cocoa Beans

• requires machines
• human capital
• human labor

Milk & Sugar

The Harms of Planting Sugar Cane

The Benefits of Sugarcane

Pollution

Habitat Loss

Where They Come From

Place of Destination

Biodiversity is lost when land is cleared for farmland.

• silt pollutes water supplies
• wastes from processing damage important ecological areas

• sweetener
• industry (jobs)

Fun Fact:

A dozen countries around the world devote 25 percent or more of all their agricultural land to the production of sugarcane.

After being sent from the harvesting location, they arrive at the manufacturer. Typically, by a truck that delivers the beans from the previous transporter.

Soil Erosion and Degradation

Industrial Waste

The soil dries out and is stripped of nutrients.

Ivory Coast

• waste water decomposition takes up oxygen in freshwater bodies
• harmful substances released during processing

• Ivory Coast supplies around 35% of cocoa beans for the world
• Africa produces 70% of the world’s cocoa output
• prices might go up because of ebola
• prices already up 23% from last year

Infrastructure:

Roads

Airports

Ship Ports

Chocolate Form

Chocolate Paste

What Happens Next

How They are Harvested

• harvested manually (by hand)
• cut from the stalks with a blade
• hook tool used to get pods higher up

The products are usually exported through a company that would ship or fly the product to another country for manufacturing.

Land

Land is needed in order to grow the cocoa plants.

Labor

The labor is the workers/slaves.The cocoa plantations either have to pay these people or enslave them in order to harvest the product.

Product

The cocoa seeds are the product. They are harvested from the trees by workers/slaves.

Capital

This tool is capital that is necessary to harvest the cocoa beans.

Where They Go...

They are then shipped by truck or train to a nearby transportation site.

Labor

Capital

Someone has to drive the truck from the farm to the transportation site.

Someone needs to buy the truck or train in order to use it.

Human Capital

The person who is driving must have the ability to drive the truck or train.

Citations

"Child Labor and Slavery in the Chocolate Industry." Food Empowerment Project. Web. 27 Oct. 2014.

"Chocolate Making." World Agroforestry. Web. 27 Oct. 2014.

"Ebola Fears Hitting the Chocolate Industry - CBS St. Louis." CBS St Louis. 20 Oct. 2014. Web. 27 Oct. 2014.

"The Chocolate Review | Where Does Chocolate Come From? | Beans, Cocoa, Chocolate, Process, Cacao - The Chocolate Review." The Chocolate Review | Where Does Chocolate Come From? | Beans, Cocoa, Chocolate, Process, Cacao - The Chocolate Review. The Chocolate Review. Web. 27 Oct. 2014.

"’Mysterious Illness" Plagues Sugar Cane Workers | World Policy Institute." "Mysterious Illness" Plagues Sugar Cane Workers | World Policy Institute. 19 May 2014. Web. 27 Oct. 2014.

"Sugar Industry Biotech Council." Sugar Industry Biotech Council Frequently Asked Questions Comments. N.p., n.d. Web. 27 Oct. 2014.

"VICTORY: Hershey's Chooses Fair Trade." Global Exchange Fair Trade Blog RSS. Global Exchange, 22 Mar. 2013. Web. 27 Oct. 2014.

WorldWildlife.org. World Wildlife Fund, n.d. Web. 25 Oct. 2014.

Distribution

and

Consumption

Benefits

• sugar industry
• cocoa bean industry
• health benefits
• chocolate industry

The final product is sent to local stores.

Consumers can access it at almost any time.

Costs

• child labor and slaves
• easily endangered (Ebola currently threatening chocolate production)
• obesity

HERSHEY'S CHOCOLATE