May 13, 2024, Bogotá: Colombian Business-for-Business (B4B) chocolate manufacturer Luker Chocolate releases its 2022-2023 Sustainability Report. It reveals significant progress towards the B Corp-certified company’s 2027 targets in areas such as increasing farmers' incomes, social well-being, and deforestation-free cocoa.
Creating Shared Value
Founded in 1906, Luker set out to transform the Colombian chocolate ecosystem to benefit all. Today, this aim is carried forward through the principle of ‘Creating Shared Value’ (CSV).
Luker Chocolate’s VP of Cacao Sourcing and Sustainability, Julia Ocampo, said, “At Luker, we don’t just aim to positively impact cocoa producers; we involve their families and wider communities too. 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.”
High price transfer for cocoa farmers
Luker purchases cocoa from 13,000 producers, which accounts for over 20% of the total 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.
Luker has made significant advancements in verifying this price transfer to the producer, achieving 100% cocoa traceability at the association and supplier levels. By 2027, the company’s goal is to achieve 100% price traceability of all cocoa used for export at the farmer level.
To further increase and diversify farmer incomes, Luker’s ‘The Chocolate Dream’ initiative helps farmers boost their productivity and expand business opportunities by providing training to help develop entrepreneurial skills and enhance local communities.
In the 2022/23 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). Real progress is being made toward the company's ambitious goal of 1,500 farmers reaching a 20% income increase (from their 2021 level) by 2027.
Social well-being: creating opportunities for women and young people
Beyond farmer income, today’s report demonstrates how Luker strengthens social well-being in Colombia’s cocoa-producing regions.
Through 'The Chocolate Dream,' Luker 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.
Projects under this initiative also raise awareness of crucial human rights issues, such as gender equality, and work towards preventing modern slavery and child labor in the cocoa industry."
In 2022, 2,210 families participated in Luker's social well-being projects. By 2023,the number of families reached had grown by more than 13% to 2,512. Further, Luker has committed to improving the quality of life for 5,000 families in Colombian cocoa communities by 2027, with close to 4,000 (3,933) reporting improvements in 2022/23.
Environmental action: land management and tackling deforestation
Luker Chocolate’s environmental mission is rooted in going ‘beyond sustainability.’ This is driven through ‘The Chocolate Dream’ programs such as Water and Forest, which aim to educate farmers and cocoa-producing communities on good water management and give rural communities access to safe drinking water. Other programs, such as Conserving the Future, encompass projects that focus on biodiversity, land conservation, reforestation, and environmental education.
Demonstrating its commitment to deforestation-free cocoa, Luker’s chocolate is fully compliant with the EU Deforestation Regulation (EUDR). Building on this, in 2022/23, the company introduced LukerTrace, which monitors ‘deforestation-free’ compliance with the latest geo-referencing and satellite lot tracking technologies, putting Luker at the forefront of meeting necessary compliance targets.
By 2023, Luker increased the land it protects through sustainable agricultural practices, agroforestry and environmental programs from 2022 by 347% to 11,945 hectares — roughly equivalent to twice the size of Manhattan Island, New York. This already exceeds the company’s 2027 goal of 5,000 hectares. As a result, Luker Chocolate has extended its environmental goal to 15,000 hectares by 2027.
Luker intensifies its environmental efforts by actively collaborating with suppliers to develop and implement effective strategies to reduce emissions. The company achieved a significant reduction in scope 1 and 2 energy and industrial emissions, cutting them by 17% during 2022-2023. Moreover, Luker obtained carbon neutral certification for its Scope 1 and Scope 2 emissions for the period 2021-2023. This achievement was secured by offsetting emissions through the use of more than 11,000 carbon credits obtained from carbon sequestration projects involving farmers and cocoa crops in the regions of Huila and Casanare.
Setting the industry benchmark
Luker’s CEO Camilo Romero said, "Our past serves as the foundation for building an ever-more sustainable future. While we celebrate our achievements, we remain committed to continuous improvement, striving to do better for our communities, our planet, and future generations."
To download the full report, click here: From Farm to Bar: Our Commitment to a More Sustainable Future.
About Luker Chocolate
Luker Chocolate is a B-Corp Certified Colombian B4B (business for business) chocolate manufacturer specializing in helping brands and companies create purpose-driven products from a wide range of fine chocolate ingredients made with the highest quality cocoa following the best practice in sustainability standards. As a high-quality chocolate manufacturer, the products are made exclusively from directly sourced Cacao Fino de Aroma and are characterized for their superior taste. To drive well-being across the cocoa value chain, Luker Chocolate partners with brands and companies who are committed to quality and sustainability, developing exceptional tasting and purpose-driven chocolate products.
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