Monday, March 16, 2009

Value Added

Chocolate sales are going up in Britain, this is because more people are staying at home instead of travelling- small affordable treat instead of large treat due to the credit crunchie. Not going on holidays is good for Cadburys whose profits have leaped up by 30% but not good for the obesity epidemic. At the same time, Scottish doctors are advising the government to put a tax on chocolate. They argue that the high calorific value of chocolate fuels the obesity problem and hence diabetes and heart disease. Good for the government, not good for Cadburys. To get back to an earlier post about the world being controlled by lizards. The slimey guys in the government have noticed that Cadburys are the only ones making a profit in these hard times, what better way to glass and a half them out of some more money than by getting doctors to advise the government that there should be a higher tax on chocolate. How would the chocolate be taxed? For instance, if it contains 70% cocoa solids, will it be taxed more than say a Wispa bar that only has a whisper of cocoa in it. I think a few eyebrows will be raised in Belgium. Or will it be taxed according to fat and sugar content? Will it mean that dark chocolate, which is supposed to be good for us ,will now be cheaper than a milky bar? Why stop at chocolate? Potato Crisps are just as calorie dense and just as instant.
At the same time, developing countries such as the cocoa growing ones in West Africa, are coming around to the concept of 'value added'. Why export your cocoa to Cadburys then import it back again as a finished highly taxed chocolate bar when you can manufacture your own? Why doesn't Africa make its own chocolate and export it to Britain to replace the tourists who can't afford to grace Africa's beaches but are now sitting at home eating chocolate bars? Good for the developing world, not good for the credit crunchie.
If I was a politician in Africa I would put a lot of effort into encouraging manufacturing instead of sending all my raw materials out.