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The Choba Choba Blog

IMPACT NEWS 2020

Avatar Written by Eric Garnier
Alto Huayabamba Valley Peru

The latest facts and figures on the impact of our Chocolate Revolution:

Additional income for farmersadditional income for farmers

2019 was a challenging year for Choba Choba. This applies especially to Peru, where the unfavorable agronomic context had a negative impact on farmers’ yields, particularly due to an increase in disease and pest infestation. This decline in cocoa production consequently led to lower incomes.

Choba Choba therefore decided to buy 100% of the available cocoa quantities (17 tonnes), which guarantees the producers a price far above the market price for their entire harvest. Although this very high price has helped to mitigate the crisis and guarantee producers an additional annual income of CHF 1469 compared to the world market, it is still necessary to find effective responses to these agronomic challenges. The entire Choba Choba team is ready to start and is mobilizing a network of experts and partners to develop solutions to limit the impact of these cocoa diseases and pests. One goal: to increase agricultural yields and thus the income of the associated producers.

From cocoa producers to  entrepreneurs

Cocoa producers capital share

The vertically integrated value chain model developed by Choba Choba, in which the producers are not simply suppliers of raw materials but also shareholders of their own chocolate brand, aims to maximize the impact of our project at the level of the associated producer communities.

Shared management, collective decision-making and co-ownership of the company are at the heart of our model. Every year since Choba Choba was founded, producers have gained access to an increasing number of shares of the company’s capital. A new milestone was reached during the last General Assembly when it was decided to increase the capital held by the producers from 22% to 30%!

This significant increase in the equity stake is reflected in the steadily growing weight of producers in the company’s strategic decision-making process. Of course, it also goes hand in hand with growing responsibility. Step by step and in accordance with the commitments we made at the beginning of our project, we enable producers to gain more power in their sector.

The funds of the Revolution

The Revolution Fund Split

Each year, a portion of Choba Choba’s turnover is allocated to our Chocolate Revolution Fund. A mechanism, that allows cocoa farmers to benefit from the economic performance of their business. The use of this fund is systematically decided by the General Assembly of producers, which is held every year in April. In 2019, the fund amounted to a total of CHF 40,000.

The chart above shows the distribution decided by the community. Beyond the amounts allocated for direct payments to families and the acquisition of additional shares in the capital of Choba Choba (see previous section), it is interesting to note that a significant part of this fund has been used for marketing investments to increase awareness of Choba Choba and thus reach more chocolate lovers. This is the best proof that the producers are fully absorbed in their entrepreneurial role and are able to make the delicate trade-off between short-term material and economic needs and the need to develop their own chocolate brand. Even in times of crisis…

The Choba Choba Cocoa Price vs. the World Price

Choba Choba cocoa price vs. world cocoa price

The chart above illustrates the significant difference between the cocoa price paid by Choba Choba and the world market price. Furthermore, the chart underlines the chronic instability of world prices with respect to the stability of the Choba Choba cocoa price.

Low prices, which do not cover production costs, and a very volatile and fluctuating market are two of the main factors that have a negative impact on the living conditions of cocoa farmers around the world. For Choba Choba, it is therefore necessary to free itself from the rules of the market and let the farmers determine the purchase price of their production each year.

In 2019, the price a Choba Choba cocoa farmer received for his cocoa was 85% higher than the price he would have received for marketing it on the local market (depending on world market prices).

Pily, New Managing Director of the Choba Choba Cooperative in Peru

Pily new Managing Director in Peru

In November 2019 Maria del Pilar (Pily!) was appointed managing director of the Choba Choba cooperative. As a cocoa producer, co-founder of our project and graduated forest engineer, she knows the problems and challenges of the cocoa producers in Alto Huayabamba by heart. After working in the cooperative for 3 years, she is now the managing director – a concrete and significant result of our empowerment efforts.

In December 2016, some of you have already had the opportunity to talk to her since she had visited us in Switzerland as part of the annual meetings we organize between cocoa producers and chocolate lovers. Her charisma, leadership and unwavering commitment to the cocoa farming communities make her a determined manager and a key player in the development of the Choba Choba project.

Support the revolution

Never has a revolution been so sweet and easy to support! 😉 To do so, all you have to do is enjoy our chocolate, offer it as a gift and spread the word around you…

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