Krakakoa

Context

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.

Solution

• Krakakoa is a “bean to bar” chocolate maker that manages the entire value chain by investing in farmers ‘development, sourcing directly from smallholder cocoa farmers, and producing fine chocolate -100% made in Indonesia
• Krakakoa guarantees farmers high price premiums (up to 200% more than current prices) by supporting them to produce the high quality beans required to make a premium product

Impact depth

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:

• Increase household income: Creates more stable and additional revenue (tripled) for small-scale cocoa growers
• Create long term sustainability: Promotes sustainable farming practices and reduces exposure to harmful chemical fertilizers and pesticides
• Foster social cohesion: Prevents rural exodus by creating economic development in rural areas

By investing in Krakakoa, we align with and contribute to six of the United Nations’ Sustainable Development Goals.