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|
|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.
|# of farmers trained
an increase in revenue
|% avg. incremental income p.a.||n/a||3||29||74|
|# of hectares of land under
sustainable farming practices
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."