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Cocoa bean exchange simulation

Simulation for supply & demand

You stand in your own light.
John Heywood

Cocao beans

Pedagogical overview

This activity is a simulation to role playing and learn about international markets, supply and demand, the interdependency of markets, and how they are all affected by environmental conditions like weather or disease.

When I began teaching Houghton Mifflin had a Cocoa bean exchange simulation that I used for ten year with sixth grade students. They really enjoyed it and learned a lot about global markets, trading, and supply and demand.

Two significant positive results from their participation are the number of students who mentioned their participation years later. And secondly how every year, during the follow up discussion, they struggled with the positives and negatives of a free market system to conclude that it is mostly positive. Particularly how to resolve the ups and downs of production. This was understandable since we lived in a rural farming community and the concern of bankrupt farmers was evident in their daily lives. Positive take aways included the importance of being knowledgeable of the variables that affect markets, the use of collectives, insurance, and support systems to assist as needed.

My search for the original simulation was unsuccessful, while I found some recent simulations (see below), they went beyond supply and demand, which I believe is great, but I would rather start with a focus on supply and demand and then use the more detailed as a follow up. Hence, I recreated this simulation, from what I remembered.

To start I asked Goggle AI to make ... And what it produced looked really good at first, particularly the ten year predictions. However, when I examined how to determine profit and loss, I found it was incomplete or illogical, as it changed the factors considerably from year to year so there was no sensible logical connection across the ten years of the simulation. So I created the yearly profit factor to add consistency. When you use the simulation you may want to tinker with this factor to adjust the consistency of the simulation for all the participants and adjust the yearly penalty to focus on more specific adjustments. However, even if there is an event that seems highly unusual or not realistic, that experience will provide some interesting information for reflection and discussion that will emphasize a variable related to supply and demand.

Enjoy!

Additional Simulation related resources

Notes on Simulation procedure or syntax

Follow-up simulations

  • Cocoa bean trading game 2008 From Ghana to Nova Scotia - A game by the Development and Education Society for 13 -30 participants to experience what it might be like to be part of the cocoa trade. To learn about fair trade can come alive particularly with reflection after the simulation.
  • Thingamabob Simulation game directions.pdf - Simulation on climate, capitalism, and CO2. The theme of the game is that an economic system driven by a profit motive will inevitably harm the health of the planet. In this simulation the harm is the global atmospheric carbon dioxide concentration and its affect on climate stability.

Concepts

  • Supply and demand are affected by many variables.
  • Supply and demand are inversely proportional. Supply goes up and demand goes down. Supply goes down and demand goes up.

Outcomes 

  • Describe variables and how supply and demand affect each other in positive and negative ways.

Focus question

  • What affects the price of a candy bar you buy on the store?
  • What affects the amount of money a cocoa bean farmer makes?
  • What affects the price of a candy bar a manufacturer charges for a bar?

Scoring guides suggestions (rubric)

Shadows and the Sun(scoring guide)

Top level

  • Describe with examples of variables that describe how supply and demand are related and each affects the other in positive and negative ways.
  • Explain that when supply goes up prince goes down and when supply goes down price goes up.

Lower level

Simulation plan & directions

Materials

  • Physical items to use for Cocoa Beans - dried kidney beans or brown LEGOs
  • Physical items to use as powder or butter/liquor - LEGOs
  • Currency: Classroom money 300 cocoa $ units.
  • Calculator or spreadsheet for brokers.
  • Journal note

Focus questions:

  • What affects the price of a candy bar you buy at the store?
  • Would you like to participate in a simulation to buy and sell cocoa beans?

Suggested procedures overview:

  1. Put learners in groups, focus their attention, and assess their initial understanding of the focus questions.
  2. Activity - conduct the Simulation, explore the results, use the quiz, and conduct a final discussion.

Exploration

  1. Assign learners a role. 12 farmers (producers), 10 companies, and 2 Brokers or accountants.
  2. Review the three roles for the Global Cocoa Exchange (2027 –2037)
    1. Producers (Farmers, sellers, traders) grow and supply the world's cocoa beans (raw materials) 4.8 million tonnes projected in year one. You need to sell all the beans you produce for the highest price you can get. With your goal to maximize your country's wealth over the next ten years. While the current market average is selling at 1 unit of beans (50,000 T) for 1$ (million) you might find it helpful to bundle beans for more profit. Like 3 units for 5$ instead of 1$ a bean or 2$ a bean. Each of the twelve will will be given a minimum amount that be sold for a company to survive. Beans rot easily and can not be saved for the next year.
    2. Processors (Buyers, factories, chocolate sales people) are responsible for a company that purchases raw beans, refines them, and makes a final chocolate products. Your company must buy the number of beans listed to produce a profit and survive another year. If you are in the red for five years in a row your company will go bankrupt. You will get $100 to start. Beans rot easily and can not be saved for the next year. Your goal is to buy to keep factories running and make a profit. If don't buy and produce you will loose money
    3. Brokers for the Global Cocoa Exchange - 2 people will count the beans for the harvest and give them to the farmers (producers). Will record their sales, number of beans sold and total price. Will record the factories (processors, chocolate company) number of beans bought, the price, determine profit, and pay out.
  3. Action
    1. The Harvest is announced and participants harvest their beans one minute if the beans are prepared to distribute by people in the global cocoa exchange.
    2. The trading floor opens farmers (producers) representatives get up and move around the room and offer their beans for sale to the buyers for the factories to find and negotiate a price. five Minutes
    3. After each farmer (producer) and buyer (factory representative) are done trading, the farmers report to global cocoa exchange to have their trade recorded. Example: Sold 5 beans to Germany for $7. 2 Minutes
    4. After each factory (buyer) and buyer (factory representative) are done trading, the buyers report to global cocoa exchange to have their trade recorded. Example: Bought 5 beans for $7. two Minutes
  4. Have one person from each group describe their role.
  5. Start the simulation
  6. At the end of each trading round, ask What was your selling purchase price?
    Do a Quick Average: Write the eyeball average of class Average Price.
    A Trend Line: After Round 3 you could have a student draw a quick line graph for the prices.
    Explain why the line went up in Year 4 and down in Year 2?
  7. Finish ... Prepare to process.

Invention

  1. The learners begin to determine end of game calculations.
    At the end of Year calculate
    1. Top Farmer: The Producer with the most Bucks per BU.
    2. Top Manufacturer: The Buyer with the most BU per $.
    3. The Survivors: Anyone who never hit a
  2. Question: Why does Germany have an export value of $8.6 Billion when they don't grow a single cocoa bean, while Nigeria grows 350,000 tonnes but has much lower revenue? This highlights the Value-Added concept. Raw material producers often earn the least, while nations that process those materials into chocolate bars (like Germany or Belgium) capture the majority of the global wealth.
  3. Why does Germany earn $8.6 Billion (16% of export value) while Côte d'Ivoire produces 38% of the raw beans? Focus on Value-Added manufacturing vs. Raw Material extraction.
  4. What happened to the economy when the West African crop failed?
  5. What is the danger of 50% of the world's supply coming from just two neighbors (Côte d'Ivoire and Ghana).
  6. Determine Year Market Conditions
  7. Supply Level
  8. Demand Level
  9. Class Average Price (Per Bean)
  10. Bumper Crop affect
  11. What is normal market
  12. Black Pod Disease affect
  13. Drought affect
  14. Recovery affect
  15. Technology affect
  16. Global energy event that increases shipping and reduces profit margins

Discover

Share and discuss information about other world markets.

 

Journal

Materials

  • Simulated money, cocoa beans, and appropriate ledger

Focus questions:

  • What affects the price of a candy bar you buy at the store?

Challenge

To be successful as a producer (farmer, seller), processor (buyer, manufacturer, seller), or operate as a successful broker.

 

What did you learn about supply and demand?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How will you use this information in your life?

 

Support materials

Background information

Coca bean harvest in 2024-2025

Coca bean harvest in 2024-2025
Rank Country Projected Output (Tonnes) % of Global Production
1 Côte d'Ivoire 1,850,000 38.22%
2 Ghana 600,000 12.40%
3 Ecuador 480,000 9.92%
4 Nigeria 350,000 7.23%
5 Cameroon 320,000 6.61%
6 Brazil 210,000 4.34%
7 Indonesia 200,000 4.13%
8 Peru 167,000 3.45%
9 Dominican Republic 66,000 1.36%
10 Colombia 60,000 1.24%

Chocolate production in 2024-2025

Chocolate production in 2024-2025
Rank Country Projected Output (Tonnes) % of Global Production
1 Germany $8.6 Billion 16.3% - 16.7%
2 Belgium $6.7 Billion 9.0% - 12.0%
3 Poland $4.0 Billion 7.1% - 7.5%
4 Italy $3.9 Billion 7.1% - 7.3%
5 Netherlands $3.4 Billion 6.3% - 6.5%
6 France $2.4 Billion 4.4%
7 United States $2.3 Billion 4.9% - 5.1%
8 Switzerland $1.7 Billion 2.7%
9 United Kingdom $1.4 Billion 2.7%
10 Russia $985 Million 1.4%

 

Global Cocoa Exchange broker information

Introduction

Welcome to the Global Cocoa Exchange.

You will disperse and collect all beans and money and record all exchanges of both the farmers (producer) and chocolate companies purchases and profits.

Producers start with three times their investment. for example

  1. Côte d'Ivoire 15$ * 3 = 45$
  2. Ghana 9$ * 3 = 27$
  3. Ecuador 3$ * 3 = 9$
  4. Nigeria 3$ * 3 = 9$
  5. Cameroon 3$ * 3 = 9$
  6. Brazil 2$ * 3 = 6$
  7. Indonesia 2$ * 3 = 6$
  8. Peru 2$ * 3 = 6$
  9. Dominican Republic 2$ * 3 = 6$
  10. Columbia 1$ * 3 = 3$

Processors start with three times their year one production goal for example

  1. Germany 17T or BU * 3 = 51$
  2. Belgium 13T or BU * 3 = 39$
  3. Poland 13T or BU * 3 = 39$
  4. Italy 8T or BU * 3 = 24$
  5. Netherlands 7T or BU * 3 = 21$
  6. France 5T or BU * 3 = 15$
  7. United States 6T or BU * 3 = 18$
  8. Switzerland 3T or BU * 3 = 9$
  9. United Kingdom 3T or BU * 3 = 9$
  10. Russia 2T or BU * 3 = 96

Chocolate companies - collect the beans purchased, record it, adjust if there is a penalty, determine profit, and if there is one, pay it.

  • Example after the first year one. Your year one's profit is the number of beans bought, no adjustments hence * 2.o, unless there is a penalty for not buying enough beans to maximize production. For example if you need to buy 10 beans to be profitable and you buy 12 beans, you get $24.

Farmers (producers) - record the number of beans they sold and pay investment costs for next years tending for, collecting, and processing of their beans.

Disperse money and beans

Announce yearly information before the start of each year and keep the explanation information secret until the end of the simulation.

At the end of the simulation share information as appropriate to process and learn.

Enjoy!

Yearly reports

Announcements to be made each year before the start of the trading round.

Yearly predictions & their affects

Yearly predictions to read aloud for each round to trigger supply and demand shifts.

Confidential information for the brokers only to understand how the change's affect will be entered into the simulation.

Year 1: Ideal weather in Côte d'Ivoire and Ghana and normal weather everywhere else. Everyone trade! Production is expected to hit the full 2.45 million tonne mark.
demand shifts.
Confidential information - Yearly profit factor is 2.o for normal production.

Year 2: The Bumper Crop: "Perfect rain in the Ivory Coast! Production, increase supply.
Confidential information - Yearly profit factor is 2.5 because of the large supply and ease of procuring quality beans.

Year 3: B ack to normal weather. The surplus is gone.
Confidential information - Yearly profit factor is 2.o normal production.

Year 4 The Black Pod Fungus. Fungal disease hits West African farms, Côte d'Ivoire and Ghana reducing production.
Confidential information - Yearly profit factor is 1.5 slightly below normal production costs due to dealing with poor quality beans.

Year 5 The Storms. Heavy rain in Ghana. They lose all their beans this year. Scarcity?
Confidential information - Yearly profit factor is 2.o normal production.

Year 6: Recovery. Everyone produces bumper crops.
Confidential information - Yearly profit factor is 2.o normal production.

Year 7 Change of trends.

  • Influencers and medical study starts a chocolate is healthy craze! Processors, find the demand is clearing the store shelves of their chocolate products.
    Confidential information - Yearly profit factor is 2.o normal production for raw beans unless buy powder or buttel/liquor from Nigeria or Cameroon.
  • The Value-Add Revolution. Nigeria and Cameroon Producers invest and build their own processing factories. They will no longer have raw beans to sell as all will be used to create finished cocoa powder, and cocoa butter/liquor. Which will be market at double the price. Which will make one bean equivalent to three beans for processors who buy these beans, since it is more concentrate and easier to process when manufacturing.
    Confidential information - Processors who buy at least 2 BU from Nigeria or Cameroon of powder or butter/liquor will be equivalent to 6 BU when processing and will have a 3.0 profit factor.

Year 8 Energy & fuel prices soar. World events cause energy fuel shortages: All Processors will pay additional transportation and production cost for fuel and energy needs.
Confidential information - Yearly profit factor is 1.5 normal production.

Year 9 Tech revolution. New technology and AI! Processing expenses decrease for making the same amount of candy.
Confidential information - Yearly profit factor is 3.o .

Year 10: The Fair Trade Mandate. Consumers in Switzerland and the USA demand ethically sourced beans. Buyers from these countries must pay a Sustainability Tax on each shipment unless they buy from a certified Fair Trade Producer.
Confidential information - Yearly profit factor is 2.o normal production. Except for Switzerland and USA is 1.5

End of simulation, Thanks!

Harvest yields (production) by countries

Coca bean simulation harvest yields
based on each countries average production in 2024-2025
Rank Country Year 1 bean production 2 3 4 5 6 7 8 9 10
1 Côte d'Ivoire (1 student) 20 25 20 10 20 24 19 18 20 20
2 Ghana (2 students) 12 15 12 6 0 14 11 11 10 11
3 Ecuador (2 students) 7 7 7 7 7 9 7 6 7 6
4 Nigeria (1 student) 4 5 4 4 4 5 5p 4p 4p 5p
5 Cameroon (1 student) 4 5 4 4 4 5 5p 5p 5p 4p
6 Brazil (1 student) 3 3 3 4 3 4 3 3 3 3
7 Indonesia (1 student) 3 3 3 4 3 4 3 3 3 3
8 Peru (1 student) 3 3 3 4 3 4 3 3 3 2
9 Dominican Republic (1 student) 3 3 3 3 3 4 2 3 2 3
10 Colombia (1 student) 2 2 2 2 2 3 2 2 1 2
    80 93 80 61 56 99 78 75 75 76

Producers (farmers ... ) profit & loss ledger

Chocolate companies - profit & loss calculation ledger
  Profit = (total beans sold for - Yearly Investment)
Country yearly investment to tend, collect, & sell 1 2 3 4 5 6 7 8 9 10
Côte d'Ivoire (1 student) - 15$

BU sold

 

-15$=

 

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

BU sold

 

-15$=

Ghana (2 students) - 9$

 

BU sold

 

-9$=

 

BU sold

 

-9$=

 

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

BU sold

 

-9$=

 

BU sold

 

-9$=

Ecuador (2 students) - 3$

 

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

BU sold

 

-3$=

 

BU sold

 

-3$=

Nigeria (1 student) - 3$

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

Cameroon (1 student) - 3$

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

BU sold

 

-3$=

 

Brazil (1 student) - 2$

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

Indonesia (1 student) - 2$

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

Peru (1 student) - 2$

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

Dominican Republic (1 student) - 2$

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

BU sold

 

-2$=

 

Colombia (1 student) - 1$

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

BU sold

 

-1$=

 

Total                    

Processors Chocolate companies - profit & loss calculation ledger

Chocolate companies - profit & loss calculation ledger
  Profit = (Bean units Bought * yearly profit factor per bean ) - (any Yearly Penalty)
Country & Beans needed for a profitable year, else lose yearly shortage penalty (YP) for each BU not bought 1 2 3 4 5 6 7
profit
factor
2.o or 3.0
8 9 10

Germany production goal

17 BU

YP (Yearly Penalty) 5$ each BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Belgium

production goal

13 BU

YP 4$
BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Poland

production goal

8 BU

YP 4$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Italy

production goal

8 BU

YP 4$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Netherlands

production goal

7 BU

YP 3$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

France

production goal

5 BU

YP 2$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

United States

production goal

6 BU

YP 2$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 1.5

-___ =

$ __

Switzerland

production goal

3 BU

YP 1$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 1.5

-___ =

$ __

United Kingdom

production goal

3 BU

YP 1$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Russia

production goal

2 BU

YP 1$ BU short

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

__ BB

* 2.o

-___ =

$ __

__ BB

* __

-___ =

$ __

__ BB

* 1.5

-___ =

$ __

 

__ BB

* 3.0

-___ =

$ __

 

__ BB

* 2.o

-___ =

$ __

Total - 72 BU

 

                 

Producer Ledger for the global cocoa bean simulation

Country Name: ___________________________

Producer (Farmer)

Harvest is the number of beans produced and harvested.

Sold is the total number beans sold

Income is the total you sold them for

Investment is the total cost to tend, harvest, process, and sell the beans.

Profit = total all beans sold for ________ - Yearly Investment __________

Coca bean simulation harvest yields
for
Year Harvest - yield Sold Income Investment Profit / loss Kind of year
1

 

 

         
2

 

 

         
3

 

 

         
4

 

 

         
5

 

 

         
6

 

 

         
7

 

 

         
8

 

 

         
9

 

 

         
10

 

 

         
Total            

 

Notes

 

 

Processor Ledger for the global cocoa bean simulation

Country Name: ___________________________

Processor (Buyer, manufacture, seller of chocolate)

 

Coca bean simulation harvest yields
for
Year Target Bought Kind of year Penalty Profit / loss
1

 

 

       
2

 

 

       
3

 

 

       
4

 

 

       
5

 

 

       
6

 

 

       
7

 

 

       
8

 

 

       
9

 

 

       
10

 

 

       
Total          

 

Notes

 

The Cocoa Market Quiz

These questions test the basic economics concepts explored during the simulation.

1. If the Ivory Coast has a Bumper Crop (too many beans), what usually happens to the price of a single bean?
A. It goes up
B. It stays the same
C. It goes down
D. It disappears

2. Which country produces the highest percentage (about 38%) of the world's cocoa beans?
A. Switzerland
B. Germany
C. USA
D. Côte d'Ivoire

3. In our game, Black Pod Disease represented a:
A. Surplus
B. Supply Shock (Shortage)
C. New technology
D. Holiday sale

4. Why did countries like Germany and Belgium have more money (Bucks) even though they didn't grow any beans?
A. They found hidden beans
B. They "added value" by turning beans into chocolate
C. They didn't have to pay taxes
D. The teacher liked them better

5. When a famous TikToker made chocolate go viral, what happened to Demand?
A. It decreased
B. It increased
C. It stayed at zero
D. It made the beans taste better

6. If a Buyer cannot find enough beans to run their factory, they face:
A. A profit bonus
B. A "Minimum Bean" penalty
C. A free vacation
D. Unlimited Bucks

7. Which of these is an example of an External Factor that affected the market?
A. Weather (Drought)
B. A student's favorite color
C. The size of the desks
D. The lunch menu

8. True or False: Most of the world's cocoa is grown in tropical regions near the equator.

9. In the simulation, what was the main goal for a Producer nation?
A. To buy as many beans as possible
B. To lose all their Bucks
C. To sell their harvest for the highest profit
D. To stop trading entirely

10. If the price of beans gets too high, what might a manufacturer do?
A. Buy even more beans
B. Stop making chocolate or find a cheaper substitute
C. Give their money away
D. Move to Mars

 

Answer Key & Explanations

1. C (It goes down) – High supply with the same demand leads to lower prices.

2. D (Côte d'Ivoire) – As shown in our production data.

3. B (Supply Shock) – Disease reduces the amount of product available.

4. B (Added Value) – Processing raw materials into finished goods is more profitable.

5. B (It increased) – More people wanting a product drives up demand.

6. B (Penalty) – Factories have high "fixed costs" even if they aren't producing.

7. A (Weather) – Natural events are external forces on the economy.

8. True – Cocoa trees require a lush tropical environment.

9. C (Highest profit) – Producers aim to maximize the value of their labor.

10. B (Substitute) – High costs force buyers to find alternatives.

 

 

 

Dear Families,

This week, our class transformed into a global trading floor!

To explore the complex world of economics, we participated in The Cocoa Bean Market Game, a simulation where they acted as Cocoa Producers (like Côte d'Ivoire) and Chocolate Manufacturers (like Germany).

Through ten "years" of trading, they navigated:

  • Supply & Demand: Dealing with "Bumper Crops" (surpluses) and "Black Pod Disease" (shortages).
  • The Wealth Gap: Discovering why nations that process raw goods often earn more than those that grow them.
  • Problem Solving: Adapting to sudden "Market Shocks" like shipping costs and new technology.

Ask your student today:

Were you a Producer or a Buyer or Exchange Broker and what challenge and success did you have related to the simulation?

 

To do ...

Get feedback on use. If you have any, let me know.

Create a spreadsheet to track farmers and producers sales and profits or loss.

 

 

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Dr. Robert Sweetland's notes
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