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Teaching Economics

In the News

Why Vanilla Is So Expensive

Geoff Riley

25th September 2018

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The price of vanilla is soaring and it provides a superb mini case study in the impact of changes in the conditions of supply and demand. A recent article by David Pilling in the FT made the point that "Strong demand for natural vanilla, speculation, bad harvests and money laundering have driven prices as high as silver."

Here are some resources to use as background. Read "Don't spill the extract"

Seattle Times: Vanilla extract costs what? A worldwide shortage means it’s time to find other options

Financial Times: Crop uncertainty drives vanilla price back to record level

BBC news: Vanilla price rise proves chilling for ice-cream makers

Why Vanilla Is So Expensive
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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