Luker Chocolate has worked to increase the income of cocoa farmers.
Luker Chocolate said it has made “significant progress” on several key sustainability initiatives including working to increase the income and social well-being of farmers while also tackling the topic of deforestation-free cocoa.
The company’s efforts are outlined in its 2022-2023 Sustainability Report.
“At Luker, we don’t just aim to positively impact cocoa producers; we involve their families and wider communities too,” said Julia Ocampo, vice president of Cacao Sourcing and Sustainability with Luker. “We are utterly convinced that the transformation towards sustainable well-being is done by involving communities in their own development through education, entrepreneurship, and environmental awareness.”
The company purchases cocoa from 13,000 producers, which accounts for more than 20% of the total farmed in Colombia. At the heart of its sustainable and equitable cocoa value chain is its commitment to high-price transfer.
As outlined in its sustainability report, Luker Chocolate paid an average of 94% of the New York Stock Exchange Free on Board (FOB) price to cocoa suppliers in 2022-2023. To provide context, this approach sees Luker pay Colombian farmers almost double the price of Ghana and Ivory Coast in the same period. Additionally, Luker offers a purchase guarantee to its producers, ensuring a market for their cocoa throughout the year.
Over that same period, Luker facilitated a 12% increase in income for 1,125 farming families. This was achieved through higher profitability, quality, and sustainability premiums and a shorter cocoa value chain (excluding the price variable). The company said it is making progress toward its goal of 1,500 farmers reaching a 20% income increase (from their 2021 level) by 2027.
With social well-being, Luker said it is creating opportunities for women and young people. Through its “The Chocolate Dream” the company offers vocational and technical education opportunities at the high school level, aiming to inspire young individuals to envision a future in cocoa cultivation. This initiative seeks to cultivate a new generation of entrepreneurs.
Luker has also increased the land it protects through sustainable agricultural practices, agroforestry, and environmental programs. By the end of 2023, the company's efforts covered 11,945 hectares, roughly equivalent to twice the size of New York’s Manhattan Island, exceeding the company’s 2027 goal of 5,000 hectares. Luker has extended its environmental goal to 15,000 hectares by 2027.
"Our past serves as the foundation for building an ever-more sustainable future,” said Camilo Romero, Luker’s CEO. “While we celebrate our achievements, we remain committed to continuous improvement, striving to do better for our communities, our planet, and future generations."