Krakakoa improves livelihoods of smallholder cocoa farmers by providing training, paying premium prices, and managing an integrated value chain.
Investee | Krakakoa (formerly Kakoa), founded 2013 |
Location | Indonesia |
Sector | Agriculture |
Funding start | 2015 |
Funding type | Grant; debt |
Indonesia is the world’s third largest cocoa producer and its 1.6 million small-scale cocoa farmers earn on average less than USD 110 per month. The spread of cocoa diseases and a lack of knowledge relating to improved agricultural practices cause yields to remain low. The majority of cocoa grown in Indonesia is not fermented, and therefore of a lower quality – this demonstrates the average cocoa farmer’s separation from value adding activities along the supply chain. Price instability creates a disincentive for cocoa farmers to invest time, energy, and money into improving cocoa quality.
Farmers partnering with Krakakoa can triple their income through a combination of yield improvement and a high premium price paid for their quality production. Krakakoa improves bean quality by enforcing sustainable agricultural practices among its supplying farmers, guaranteeing a market and preserving natural ecosystems.
Krakakoa helps:
Impact Reach | 2014 | 2015 | 2016 | 2017 |
# of farmers trained and experiencing an increase in revenue (cumulative) |
60 | 82 | 173 | 831 |
% avg. incremental income p.a. | n/a | 3 | 29 | 74 |
# of hectares of land under sustainable farming practices (cumulative) |
90 | n/a | 158 | n/a |
By investing in Krakakoa, we align with and contribute to six of the United Nations’ Sustainable Development Goals.
Sabrina Mustopo, Founder, Krakakoa"I think the big difference is that LGT VP ranks impact first. Other companies have a limit and say “ok we are aiming at 20+2” and that is what we hear all the time that we have to do. We then do the math and wonder how we could do 20+2 given the nature of our work? The thing that I think is great about LGT VP is that you [LGT VP] have different people in different places who are there to fulfill different needs."