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Show Page seventeen Soaring cocoa prices may convince a sweet tooth or two to switch to something less expensive. Cocoa price hikes could force sweet tooth extraction its cousin, coffee, cocoa is sporting a lively climb toward the top of the price ladder, forcing candy manufacturers to tighten productivity standards and pray for loyal consumers. Of the 22 Utah candy manufacturers, most say they arc looking with apprehension toward September, the be Like ginning of the next chocolateOnly one buying season. lucky confectioner says he isnt worried. He purchased enough chocolate in December, 1976, at a much lower price than todays, to supply his operation through this year. But most commodity forecasters predict this years prices will be the highest the market will see. Beginning in July, 1975, cocoa futures contracts climbed from 55 cents a pound to $1.10 by the spring of 1976. This past spring, they had doubled again, to $2.11. (Thats a 283 percent increase in less than 24 months!) Nervous investors are now watching the volatile The graph above depicts cocoa s price increases on the New York futures market. prices perform unpredictable gyrations on the price graph, fearing the validity of reports that unseasonable weather in Ghana (the single largest cocoa producer in the world) could reduce the already tight supply of the cocoa bean. But as the prices surge, demand for chocolate falls. "If the price continues to rise, chocolate will be a luxury item, says Dale Glade of Glade Candy Co. "It will be something you give only at certain times of the year, like Christmas or Easter." Profit margins squeezed When you see Avis Yearlings, youll be g used surprised that such clean, cars are a year old or so. But its a fact. While they were Rent A Cars, Avis maintained them under its Car Care Program and Quality Assurance Inspection. Then we even added a limited powertrain warranty. Yearlings look good. Because Avis kept them young. good-lookin- CHEVROLET OLDSMOBILE CHEVROLET CAPRICE CUTLASS MALIBU $4990 $5095 $4750 r While the price of cocoa skyrocketed 100 percent last year, retail prices have risen between only 10 and 30 percent during the past two years, manufacturers say. "Our profit margin is being squeezed," complains David Kedenbaugh, manager of Janet Russell Candies Co. "We're trying to offset the costs by applying greater proIm ductivity standards. I and harder, working try to get the others to do the same," he adds. Russell is also responding to the squeeze by not "pushing" chocolate items. "Were pushing salt water taffy, instead," Redcnbaugh says. Nuts have gone nuts Hbung used cars 611 S. WEST TEMPLE 521-07- 07 Complicating the chocolate squeeze for confectioners is an increasingly alarming advance in the cost of nut meats. According to Glade, the price of pecans has tripled during the last season. Cashews cost double what they did last year and the price of walnuts has jumped by nearly 30 percent. Summer is not the season Continued on page IS |