The Belgian Chocolate Makers use honest cacao coming from Mana (Philippines).
SOURCING REPORT
2021-2022
TABLE OF CONTENTS
INTRODUCTION
AN OVERVIEW OF THE PAST YEAR
OUR SUSTAINABLE SOURCING POLICY (SSP) Introduction Scope Core Principles Reporting Concerns
14 14 15 16
03 04 07
10 11
A Message from Kelly and Mark Getting to know Philippine Cacao Who We Are
September 2021- August 2022 Cost Distribution Across the Supply Chain Auro Cacao Throughout the Years
12
HOW WE SUSTAINABLY SOURCE CACAO Sustainable Partnerships, Empowered Farmers Beyond Tree-to-Bar
FARMER SUPPORT
OUR CACAO PRODUCERS
26 34 36 38 39 40 42
23
Strengthening Farmer Partnership
18
Get to know our producers Davao
19
Cacao Blend Feature : Davao
Saloy
Cacao Blend Feature : Mana
Paquibato
Cacao Blend Feature : Paquibato
SOCIAL IMPACT
EXPANDING OUR IMPACT
WHAT’S NEXT
44 44 45 47 48 50
Making the Cacao Journey Impactful Improved Cacao Farmer Program Organic Conversion Program (OCP) Crowdfarming
52 53 54 55
57 58 59 59
Partnerships for a Cause MEDA Henry and Sons Generation Hope: HOPE in a Bottle
Conclusion Goals for 2023 Bibliography Credits
Meet Our Farmers Nursery Program
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Definition of Term
A QUICK GUIDE TO ALL CACAO TERMS IN THE PHILIPPINE CONTEXT.
CACAO Cacao is the more widely used term for theobroma cacao in the Philippines.
CACAO PODS The harvested crop from the tree, still covered in its soft, thick shell that varies in size and color.Typically contains 30 40 - cacao beans. WET BEANS Freshly-harvested cacao beans that are still covered in white, juicy pulp after pod breaking.These are collected to be dried every harvest.The weight of three kilos (3kg) cacao wet beans are equivalent to one kilo (1kg) of cacao dried beans. DRIED BEANS Cacao beans that are already dried - some farmers ferment their beans (dried fermented cacao beans) while most sundry their cacao beans without fermentation.At Auro, we only use dried fermented cacao beans for our products. TREE TO BAR Tree-to-bar is a direct trade process that indicates our beans are directly sourced from farmers and made in the country of origin. In addition, it means we are involved in every step from the cultivation of the cacao tree to the processing of the beans all the way up to packaging and retailing of the product. SINGLE ORIGIN Single Origin chocolate means the cacao we use are sourced from one specific place, highlighting the unique terroir of the location and promoting direct trade and transparency. SINGLE ESTATE Single Estate means that the cacao beans used for the chocolate come from one specific farm or area within an origin. SINGLE VARIETY Single Variety means that the beans used for your chocolate are only made from one variety or clone of cacao sourced from 5 - 4 different farms.
BARANGGAY The Philippine term is similar to town or village.
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Definition of Term INTRODUCTION
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2
Introduction
A MESSAGE FROM KELLY AND MARK
Hi everyone,
We are delighted to share our second sourcing report with you! Last season was another journey filled with new challenges and exciting opportunities. Before we start, let us do a short recap of our first sourcing report. Initially, we shared the humble beginnings of our business as a proudly Filipino, tree-to-bar chocolate company.We highlighted the importance of transparency, direct trade, traceability, and sustainability, which reflect our values as an organization.We provided a brief background of the rich history of cacao in the Philippines being the first Asian country to grow and cultivate cacao.We also shared stories from the interesting lives of our partner cacao farmers. Our cacao sourcing data emphasized how we have created a positive impact on their income. Lastly, we provided descriptions of the unique flavor profiles of the cacao beans that we locally source.This time, our second sourcing report focuses on providing updates on the goals we previously set and other improvements we made last season. Last year, despite the lingering effects of the pandemic, our team managed to source a total of 168.98 MT of cacao, which is approximately 70% more compared to our last reported data of nearly 100 MT in 2021. Additionally, our farmers› income increased from 33% in 2021 to 42% - an increase of 9% on the income of our partner farmers based on our recorded total cost distribution data for 2022.
These are just a few of the accomplishments we have achieved that we are proud to report to everyone. Positive impacts like these motivate us to do better and reach more milestones for our business and our partner cacao farming communities. We have implemented new development initiatives such as our Nursery Program to primarily preserve the unique flavor profiles of our locally sourced cacao beans, particularly in Saloy, Davao which has won awards internationally.We are also currently exploring partnerships with other organizations and institutions that share the same values and advocacies similar to ours to collaborate with to create more beneficial effects for the communities we work with. Through this second sequence of our annual reporting, we hope that we were able to provide you with an insightful glimpse into how we are doing as a social enterprise that holds high regard for sustainability, direct trade, and traceability. Thank you for your continued support!
With much appreciation and excitement,
Kelly S. Go Managing Director
Mark M. Ocampo Managing Director
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Introduction
GETTING TO KNOW PHILIPPINE CACAO
To Filipinos, cacao is a reminder of home.
Since its arrival more than three centuries ago, we have deeply integrated it into our everyday lives - its presence is prominent in our culture and cuisines. In fact, a warm cup of sikwate (hot chocolate) used to be the go-to morning drink of Filipinos and for some, it still is. It has always been ever-present in our lives, making it one of the most valuable crops to us. Cacao first arrived on our shores around the 1670s when a ship of the Manila-Acapulco Trade brought our first cacao trees, which was believed to be Criollo, one of the most prized varieties today. 1 Historical records point to either Luzon or Visayas as its first destination where it was distributed to households. Eventually, there was a cacao tree at every home in the Philippines for centuries, shaping a rich chocolate culture that has birthed various dishes which remain to be a source of comfort for most of us.
1 Blanco, M., and André s, N. (1877). Flora de Filipinas . Manila: Plana
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Introduction
GETTING TO KNOW PHILIPPINE CACAO
FAST FACTS 2
90% of cacao farming is by smallholder farmers with an average of 1.4 hectares
10,000 - 50,000 There are currently around cacao farmers all over the country
77%
of local cacao supply are from the Davao Region
The Davao Region produced about
30,000 2020 - 2021
67% wherein
while
metric tons of dried fermented beans in
10%
are bulk beans
are fine flavour
2 MEDA. (2022). MEDA-RIISA›s Integrated Market Systems Analysis (IMSA) . Initial Program Report.
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Introduction
GETTING TO KNOW PHILIPPINE CACAO
The Diwata of Filipino Cacao Culture
There is even a folklore of a local diwata (goddess/fairy) named Maria Cacao in Cebu, who is known as a trader of cacao, using her riches to help the townspeople with their requests. 3 The story goes that she regularly passes by the river at night on her golden ship to sell chocolate to faraway lands.The presence of cacao in this story is reflective of our close relationship with the crop, which has since made an impact in each part of our lives.
This warmth and love for cacao is something we hope to share with the world. Right now, the Philippines is still an emerging fine flavour origin in the global market.We hope to improve this through our work with local cacao farmers and show the world the richness of Philippine cacao in flavour and in tradition.
3 Alburo, E.K. (1977). Cebuano Folktales 1 . Cebu City: San Carlos Publications.
6
Introduction
WHO WE ARE
Our journey began in 2015 when we started building valuable partnerships with local cacao farmers in Davao, and learning more about the potential of the different cacao varieties found in their farms. Eventually, we were able to launch our brand in 2017.
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Introduction
WHO WE ARE
The name “Auro” came about by combining Au, and Oro, the chemical symbol, and Spanish terms for gold, respectively.This represents our pursuit to refine Philippine cacao and elevate the lives of local farmers whose work, to us, is as precious as gold.
We chose to share our love for fine Philippine cacao by sustainably sourcing our beans, paying premium prices, and building programs that can help improve their productivity and quality of life.To us, this is how we go beyond tree-to-bar - by getting ourselves involved every step of the way whether it be building deeper connections with our partner farmers or maximizing the flavour potential of every cacao and chocolate product we make.
HIGHLIGHTS
Fastest Growing
Collaborative
premium tree-to-bar chocolate company in the Philippines.
Won a total of 55 international awards including the Top 20 Best Cacao Beans in the World from the International Cocoa Awards in 2019 for Paquibato.
Going Global
Product Diversity
Retail stores and cafes in the Philippines and Bahrain.
Wide range of fine flavour cacao and chocolate products for different industries.
Sustainability
Award-Winning
Innovative collaborations with leading companies.
Greater social impact with Beyond Tree-to-Bar approach.
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Introduction AN OVERVIEW OF THE PAST YEAR
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An Overview of the Past Year
SEPTEMBER 2021 - AUGUST 2022
We started to publish our own sourcing report last January, covering the years of 2020 to pre-harvest season of 2021.This year, we now move to report annually, covering the start of harvest season in 2021 until the month before the start of the season in 2022. We are happy to continue sharing our purchasing data from this period.
168.98 MT ₱ 21,778,056.05 / $ 435,561.12 ₱ 3,363,327.21 / $67,266.54
Total Cacao Purchased Total Amount of Payment Made Included Premiums Farmer’s Weighted Average Income per Kilo Wet Beans Dry Fermented Beans Farmer’s Weighted Average Income per Ton Wet Beans Dry Fermented Beans
₱ 39.75 / $ 0.79 ₱ 148.36 / $ 2.97
₱39.749.79 / $795.00 ₱148,363.68 / $ 2,967.27
Note:All USD Values are based on exchange rate of Php 1 = USD 50 for the past year
The past year has been a productive year for us as more businesses get back on track.This allowed us to to purchase 75% more cacao this year that amounts to approximately Php 22 million or 435 thousand dollars. This is way more than what we anticipated but as more demand comes in, we expect this to increase next year. We are consistently one of the highest payers of cacao in Mindanao as we offer prices above the ICCO Commodity price that is 10 - 15% higher. On top of this, we also offer premiums on top that are rewarded for high quality fine cacao beans we source.
As we continue to grow, we have welcomed more partner farmers, purchasing from a total of 65 smallholder cocoa farmers and 8 cacao producing groups or organizations during 2021 to 2022.We are happy to work with even more partner cacao producers and we are positive that this number will only continue to increase as we connect with more cacao producers around the Philippines.
Number of Cacao Farmers
65
Number of Cacao-Producing Groups (Associations or Cooperatives)
8
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An Overview of the Past Year
COST DISTRIBUTION ACROSS THE SUPPLY CHAIN
One of the most important aspects we want to measure from our tree-to-bar process is the share earned by our partner producers from our whole operations. Since last year, we have been trying to understand this by getting the percentage that goes to our partners from the costs of our whole production - from buying one (1) metric ton of cacao to making it into chocolates.
We’re happy to say that a considerable portion of our costs still remains allotted to the payment of our partners. Right now, 45% of our total cost in the production of 1 metric ton of cacao to chocolate, including additional premiums, goes to our partner farms. This is now higher than our previous statistics of 39% share with farmers from last year, and now makes up the majority of the share of our costs for our chocolate production.
42%
3% 5%
Farmer’s Income
Additional Premiums
Post-Harvest Process
10% 32% 7%
Chocolate Production
Other Costs
Domestic Storage and Logistics
This is positive news for us.We hope that we are able to maintain and maybe even improve this number in the future.
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An Overview of the Past Year AURO CACAO THROUGHOUT THE YEARS
Metric Ton Per Year
We have been buying cacao beans from partner farmers since 2016. From then until now, we have been able to acquire a total of around 573 metric ton (MT) of dried fermented cacao beans valued at Php 82 Million Pesos or $1.6 Million USD that were directly paid to our partner cacao producers. We are incredibly proud of our progress for the past 7 years and we look forward for these numbers to grow even further so that we may be able to share more fine Philippine origin cacao beans to the world.
150.00
100.00
50.00
0.00
2016 2017 2018 2019 2020 2021 2022 (Until Aug)
Year
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An Overview of the Past Year OUR SUSTAINABLE SOURCING POLICY (SSP)
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Our Sustainable Sourcing Policy (SSP)
INTRODUCTION
SCOPE
Auro Chocolate is a tree-to-bar company that produces fine cacao and chocolate products made from sustainably sourced ingredients.Auro’s Sustainable Sourcing Policy (SSP) demonstrates our commitment to working together with our stakeholders towards the long-term goal of making a positive impact on the lives of local farmers and the environment.
The SSP applies to all Auro employees, partners and suppliers and their employees and subcontractors providing products, materials, expertise and related services. It sets out the Core Principles and Mandatory Requirements that all stakeholders must achieve to establish and maintain a relationship with Auro.
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Our Sustainable Sourcing Policy (SSP)
CORE PRINCIPLES
Commitment to deliver programs that contributes to the improvement of the quality of life of our partner farming communities. The communities we work with are a vital part of our success, and it is important to us that we contribute to the improvement of their quality of life.We are committed to do our best in creating programs that will empower our partner farmers and promote agriculture as a viable career for the next generation.
Promotion of directly-sourced local ingredients in order to improve quality and farmer income.
Business is conducted in compliance with applicable laws and does not engage in bribery or any other unlawful practices that compromises integrity. All laws and regulations are complied with in the country of operation. All other applicable international laws and regulations are complied with including those relating to international trade, data protection and antitrust laws. There is a prohibition on any and all forms of bribery, corruption, extortion or embezzlement.All and any conflict of interest in any business dealings will be declared to Auro Chocolate.Any confidential information must not be shared with any third party unless expressly permitted by Auro Chocolate.All business dealings are transparently performed and accurately reported.
Auro is committed to promoting other local industries in order to create a positive impact in the agricultural industry and bring more farmers out of poverty.Auro aims to bring greater international awareness to premium quality Filipino products and important traditions that do not often get sufficient recognition. Imported ingredients will only be considered if locally produced alternatives do not exist, are not cost-effective, or are not compliant with international food safety and other relevant standards.
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Our Sustainable Sourcing Policy (SSP)
All stakeholders are treated equally and fairly with respect and dignity. Auro Chocolate respects and complies with international labor standards as defined by core conventions of the International Labor Organization (ILO) and the UN Guiding Principles on Business and Human Rights.All employment must be voluntary and legally conducted. No worker is subject to any harassment or abuse.There is no discrimination in employment.
No child and forced labor.
Land rights of communities, including indigenous peoples, must be protected. The rights and title to property and land of the individual, indigenous people and local communities are respected.
Under no circumstances will child and forced labor be used according to prevailing ILO principles.
Environmental impact must be considered at all times with the goal of enhancing biodiversity and becoming carbon/climate positive by 2025. Negative impacts on the environment must be minimized, particularly on climate and biodiversity. Natural resources must be used for sustainability. Concrete steps must be taken to protect and preserve the environment.
Traceability must be ensured across the supply chain.
Health and safety must not be compromised.
Adequate information must be taken and recorded throughout every step in the supply chain to increase transparency and traceability.
Adequate steps are taken to comply with applicable laws and regulations, and prevent accidents and injury to health in the course of work by minimizing the causes of hazards inherent in the work environment.
REPORTING CONCERNS
Any concerns regarding failure to comply with this policy must immediately be reported to Auro Chocolate as soon as possible. Strictly no retaliation is allowed against those who report.
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Our Sustainable Sourcing Policy (SSP) HOW WE SUSTAINABLY SOURCE CACAO
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How We Sustainably Source Cacao SUSTAINABLE PARTNERSHIPS, EMPOWERED FARMERS
We are committed to building fair and sustainable partnerships that empower farmers to continuously improve both yield and quality. As instrumental partners of our journey and the guardians of the land they are nurturing, we are dedicated to creating a long-lasting social impact on their communities.We demonstrate this through the following action steps:
Additional Incentives Above the ICCO Market Price
1
We purchase cacao beans with an additional 10-15% premium above the ICCO world market price to incentivize quality and variety segregation while improving their income significantly.
Consistent Farm Technical Assistance
2
Our cacao technicians and agriculturists conduct farm visits to provide better assistance on what they can further improve for better quality beans and yield.
Holistic Farm Management Trainings and Seminars
3
We provide a variety of training programs on key topics such as Good Agricultural Practices (GAP), business and financial management to equip our partners with the knowledge and skills they need in cultivating their farms.
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How We Sustainably Source Cacao
BEYOND TREE-TO-BAR
CACAO JOURNEY
Harvesting
Fermentation
Solar Drying
1. Fully ripened pods are carefully harvested from trees.
2.Wet cacao mass is fermented in wooden boxes for 4 to 6 days.
3. Fermented beans are placed on a solar dryer to reduce moisture.
Sorting
Roasting
Winnowing and Grinding
6. Roasted beans are broken into smaller pieces and winnowed to remove the other shell. Nibs are then ground in staged until smooth and silky.
4. Fermented dried beans undergo through checking to ensure quality.
5. Sorted beans are roasted to enhance flavor and eliminate bacteria.
Conching
Tempering
Chocolate!
7. Cacao is mixed with other ingredients and conched, which is a kneading process that optimizes flavor and texture.
8. Chocolate is tempered to have the right shine and snap.
9.Tempered chocolate is put in moulds and packaged.
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How We Sustainably Source Cacao
BEYOND TREE-TO-BAR
From the beginning, we wanted to make a sustainable impact at every step of the value chain.This means committing ourselves to consistency, quality, innovation, and social impact throughout the whole tree-to-bar process. This starts by directly sourcing our cacao beans from farmers and farmer organizations to shorten the supply chain, which allows us to make a better impact on their income and the programs we can connect them to.Without a middleman, we can pay higher, and develop deeper relationships with each of them. Since we do everything within the Philippines, we can become more hands-on as we help them maintain good quality beans and provide access to training programs led by our team of cacao technicians and agriculturists.
SINGLE ESTATE 1
SINGLE ESTATE 2 SINGLE ESTATE 3
SINGLE ESTATE
VARIETY
SINGLE VARIETY
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How We Sustainably Source Cacao
BEYOND TREE-TO-BAR
These beans then undergo bespoke post-harvest protocols developed with the help of Dr. Zoi Papalexandratou of Zoto Cocoa Consultancy in Belgium. We have been working with her since 2018 and she has since helped us bring out the maximum flavour potential of the beans we have sourced from our different farming partners.These fermented beans are then sent to our 2,000 sqm factory in Laguna where the magic of our chocolate making process happens. We passionately craft all of our products from scratch with the latest technologies and certifications in HALAL, Good Manufacturing Practices (GMP), and Hazard Analysis Critical Control Point (HACCP). Our commitment to quality and innovation allows us to honor the distinctive flavors of our heirloom cacao and transform them into original recipes using time-honored techniques.
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How We Sustainably Source Cacao FARMER SUPPORT
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Farmer Support
STRENGTHENING FARMER PARTNERSHIP
Providing farmers the support they need is another core part of what we do. As their partners, we want to ensure that we can help them achieve good quality beans and better yields.We understand that cacao farming is laborious and costly, which is why we try to provide contributions to their farm activities and improvements when we can.
During the past year, we were able to provide the following support:
Financial support for the Harvest Season Every harvest season, we release monetary assistance to some of our smallholder farmers who help consolidate the cacao beans of our other partners in their area.The advance money helps them pay farmers for their beans immediately and prepare the logistics they need to transfer the beans. Productivity Assistance for Farm Inputs It takes great care and a considerable expense to produce good quality cacao beans.To help ease the burden in activities that smallholder farmers need to perform before and after harvest season, we open our assistance for any farm inputs they may need either financially or through in-kind contributions. This year, we were able to distribute sleeves that they use to prevent cacao pod diseases and lend some financial assistance.We are also looking to further improve the ways we can help by understanding how we can better provide access to inputs that they may need.
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Farmer Support
STRENGTHENING FARMER PARTNERSHIP
Field Advice and Farm Monitoring To help our partners produce great quality cacao, we have our team of agriculturist and technicians conduct quarterly farm assessments for both conventional and organic farmers so we can help identify areas of improvement.This way, we are able to document the status of their farms, share historical data with the farmers, and help find solutions for any existing problems.We have initially started this program for our organic farmers but have finally started doing this for conventional farmers as well.We hope to be able to get valuable insights that can allow us to further help them. Financial Support for Post-Harvest Facilities Producing good quality beans often means having the capacity to have the correct facilities so farmers can effectively bring out its maximum flavour potential.While we do our own protocols, we also buy dried beans from select farmers. If we can, we offer financial support for the maintenance and repair of their post-harvest facilities to capacitate their farms. Financial and Logistic Support for Nursery Each area we work with offers unique cacao varieties that help shape the distinct notes of their beans.We recognize the importance of preserving and maintaining these existing varieties.Thus, we are working to offer financial and logistic support for a cacao nursery in their areas. These are just a few ways we are able to provide support for our partner farms.We also conceptualize and manage community-based programs that target specific needs of select farmers to not only support their cacao activities but help improve their quality of life.We talk further about these projects at the latter part of this report.
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Farmer Support OUR CACAO PRODUCERS
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Farmer Support INTRODUCTION Our Cacao Producers GET TO KNOW OUR PRODUCERS
8 cacao producing organizations, and 65 smallholder farmers
representing almost 4,400 families and around 1,000 hectares of farm.
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
SOURCING OFFICE: Almacen, Kilometer 11, Catalunan Pequeno,Talomo, Davao City CACAO COVERAGE: Davao del Sur, Davao del Norte*, Davao de Oro*, and North Cotabato* *Certain areas only
Talomo, Davao City Saloy, Davao City Paquibato, Davao City
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Our Cacao Producers
FAST FACTS
Cacao is intercropped with various fruits that often serve as shade. Commonly, it is planted with coconut and banana. High peak season is expected from October to March, while the low peak season is expected from May to June.
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
We currently source our cacao beans from different partner farmers all over Mindanao, primarily in the Davao region, which has recently been named the “Chocolate Capital of the Philippines” for its rich supply of cacao beans. In addition to our existing areas around Davao del Sur, and Davao del Norte, we have also recently began expanding the coverage of our sourcing with new cacao beans coming from North Cotabato. We also continue to partner with our two of our identified unique origins of cacao in the baranggays of Saloy and Paquibato, where high quality beans are sourced for our Reserve Collection bars. The graph on the right side presents the number of partner farmers, farm workers, farm tenants, and cooperative members that we are able to reach through our sourcing of cacao beans in Mindanao.
LOCATION
TOTAL
Paquibato (Origin)
233
Saloy (Origin)
18
145
Davao City
157
Davao del Sur
61
Davao Occidental
217
Davao del Norte
1
Cotabato
Cotabato 0.1%
Davao City
17.4%
Davao del Norte
26.1%
Davao del Sur
18.9%
Davao Occidental
7.3% 2.2% Saloy
Paquibato
28.0%
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
Climate and the Cacao Season (2021 - 2022)
It is especially important to consider this as most cacao farms practice agroforestry and are near the homes of various protected native and endangered species. Last year, we also experienced how the unpredictable harvest patterns have affected the yield, delaying the farmers’ income from the crop.This year, the situation remains the same, although farmers fear the harvest may be even later this time. One of the events they find to affect this is the excessive rain in the area causing the ca- cao flowers to fall even before they develop into pods.At times, this has led to the flushing of new leaves that have to be managed as it could prevent the productivity of the tree. Due to the erratic weather pattern, the harvest time for different trees does not occur at the same fre- quency as before, which seemed to result in low yields. It also appears to be affecting other fruits commonly found in the region like mangosteen, and lanzones.
Last year, we shared our team’s and partner farmers’ observations on the changes we experience with climate and how it is affecting cacao production.We want to continue this as a way to raise awareness on the lived experiences of smallholder farmers and how it is affecting production of cacao which can subsequently affect their income. The recent report from MEDA for their RIISA Project briefly tackles the same dilemma, highlighting the vulnerability of farmers to the impacts of climate change [2]. It is observable in Davao that cacao farmers are facing challenges like droughts, prolonged and heavy precipitations, and unpredictable climate patterns that have been negatively affecting the productivity of their yield. Currently, while there are policies that aim to protect the climate and environment, there is still limited access to programs and services that can alleviate this. In addition, while current cacao farming practices do not encroach on protected areas, there is a risk of this occurring as the crop becomes a more important source of income for the region.
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
As a tree-to-bar chocolate company, it is in our interest to share with the public our observations on the changes in climate and it effects on cacao season to raise awareness on how our planet is changing through the lens of our partner cacao farmers. Gender Demographics Women play a significant in the cultivation of cacao and in its post-harvest activities.At Auro, we work with female cacao farmers and individual farmers who employ a significant number of female farm workers for tasks around the farm. Right now, we work with a total of 496 male and 305 female cacao partner farmers and workers.
Female Cacao Workers & Farmer Workers
395
Male 0.1%
Female
17.4%
Male Cacao Workers & Farmer Workers
496
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
Looking deeper into the supply chain, we found that among our partner individual cacao farmers, more male farm workers are hired to do cacao cultivation labor while there are slightly more female cacao farm workers doing post-harvest labor in the farm.
SEX
TASKS
MALE
FEMALE
60
19
Cacao Cultivation
34
38
Post-Harvest
Male and Female Farm Workers According to Tasks
60
Male
Female
40
20
0
Cacao Cultivation
Post Harvest
Gender Distribution of Farm Workers According to Tasks
As we try to understand the significant role of this gender distribution across our supply chain, we strive to continue giving equal opportunities regardless of gender identity with the goal to reach and provide opportunity to as many female cacao partners as we can. Currently, we are working with institutions that can potentially help us bring a more gendered approach to our sourcing practices.We hope to continue building a great future for cacao farmers of all genders!
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Our Cacao Producers GET TO KNOW OUR PRODUCERS
Average Age
Youngest Age
48
20
years old
years old
Age Demographics While the agricultural industry in the Philippines faces the challenge of the aging population of farmers, we are hoping our efforts to directly trade and implement programs to give assistance would inspire the new generation to see cacao farming as a viable career. The average age of our partner farmers is 48 years old, with most ranging from 35 to 60.We currently have a few partners below 35 years old whose numbers we hope to see growing over the next few years.
Smallholder Farmers Age Range
Below 35 years old
35-60 years old
Above 60 years old
0
10
20
30
40
Individuals
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Our Cacao Producers
DAVAO
Average yield for ha.
Total farmland for cacao
918.40
0.16
hectares
MT per hectare
Our journey with cacao and chocolate started with the Davao region.This area is known to be one of the most agriculturally rich places in the Philippines. Dubbed as the “fruits basket” of the country, it boasts a great collection of fruits such as mangosteen, durian, banana, mango, and, of course, cacao. We started our cacao journey in this region at Davao del Sur in 2015 where we met farmers who continue to share our vision to create fine quality cacao.With our partnership, we have applied a premium price that would significantly improve their income. Most of the farmers we have met during this time still remain as valuable partners to this day.
The farming communities that we work with are from different areas of Mindanao with unique cacao varieties that offer diverse flavor profiles. Most of our partner farmers are generally located in Davao del Sur, with farms situated around Davao City, namely in Calinan, Subasta, Tagakpan, Malabog.We also partner with the baranggays of Saloy and Paquibato, the pioneers of our single-estate origins product line. Outside the city, we source cacao beans from the rich farms of Kiblawan.
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Our Cacao Producers
FAST FACTS
[4] By land size, Davao region accounts for the 78% production area in the country, approximately 20,00 hectares in 2020.
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Our Cacao Producers CACAO BLEND FEATURE: DAVAO
DAVAO BLEND
Estate: Davao, Philippines No. of Farms: 3 - 5 farms Trinitario Blend
Our Davao Blend represents the dominant flavors of the region of Davao del Sur.The cacao beans used for Davao are varieties that are commonly found in the area evoking flavor notes of walnut, toast, honey, and maple.
AVG BEAN WEIGHT (G)
Fermentation : 6 to 7 days Number of turns : 3
Walnut Toast Honey/Maple Tamarind
1.1
Pre-drainage : No Drying : 7 to 8 days
SIZE (BEANS/100G)
91
REGALO
Estate: Davao, Philippines No. of Farms: 3 - 5 farms Single Trinitario Variety
The cacao beans that Regalo is made from was a gift of a foreign country to the Philippines. It has proven to be a resilient and productive variety, helping many cacao farmers develop their cacao farms to what it is today.To honor its impact to our local communities, we named these beans as Regalo, which means “gift” in Filipino. Regalo is one of the first in our Reserve collection with hints of green apple, green tea, and pine wood.
AVG BEAN WEIGHT (G)
Fermentation : 5 to 6 days Number of turns : 2 to 3 Pre-drainage : Yes Drying : 8 to 10 days
1.36
Green Apple Green Tea Pine Wood
SIZE (BEANS/100G)
73
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Our Cacao Producers CACAO BLEND FEATURE: DAVAO
HARANA
Estate: Davao, Philippines No. of Farms: 2 - 3 farms Single Acriollado Variety
Harana means “serenade” in our language and that is how we felt when we first tasted these beans.With interesting flavor notes like citrus, red berries, almonds, and mint, the Harana cacao beans sing to you as you experience its flavors.
Balsamic Almonds Cashews Citric
AVG BEAN WEIGHT (G)
Fermentation : 5 days Number of turns : 3 Pre-drainage : No Drying : 8 to 10 days
1
Refreshing Mint Red Berries Citrus Blossoms
SIZE (BEANS/100G)
100
LUNA
Estate: Davao, Philippines No. of Farms: 4 -6 farms Single Catongo Variety
Luna is derived from the Filipino word “Para- luman” which refers to a “muse” or a source of inspiration. This particular variety is actually one of the rare beans found in the country with a natural sweetness to it and a whitish color to its beans.With rich flavor notes of eggplant, forest blossoms, wood, cumin, and dry herbs, we find this blend to be inspiring to taste.
Spicy Courgette Eggplant Cumin Dry Herbs Forest Blossoms Wood
AVG BEAN WEIGHT (G)
Fermentation : 5 days Number of turns : 2 Pre-drainage : Yes Drying : 8 to 10 days
1.58
SIZE (BEANS/100G)
63
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Our Cacao Producers SALOY
19.40 hectares Total land for cacao
Flavor Profle:
Total farmland for cacao
30.90
Complex Tropical and Berry Notes with a subtle spice and earthy finish.
hectares
One of the communities we work with is the town of Saloy. Situated between tropical mountain forests, Saloy is a small community in Davao nourished by the fresh spring water flowing through its lush farms. It is part of an agricultural region in the Philippines wherein farming of cacao, copras (kernel of the coconut), and a variety of local fruits and vegetables are the main livelihood sources.They are also the source of one of our Reserve Bars named after their inherited lands: Mana. by 2022.
Here in Saloy, our partners have formed a people’s organization called Saloy Organic Farmers Association (SOFA) to coordinate their efforts to convert to organic farming practices.They are a part of one of our community programs, the Organic Certification Program (OCP), where Auro Chocolate assists them in their organic conversion by providing training, inputs, and sponsorship of the certification fees.Together with SOFA, we are hopeful to obtain the organic certification by 2022.
PAYMENT TO FARMERS
WEIGHTED AVERAGE PRICE / MT PHP USD
PHP
USD
BEAN TYPE
Total Payment to Farmers
₱ 8,921,495.30 $178,429.91
Dried Beans
$3,035.65
₱ 151,782.38
₱ 1,803,445.20 $36,068.90
Included Premiums
Wet Beans
$850.42
₱ 42,520.85
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Our Cacao Producers CACAO BLEND FEATURE: MANA
MANA
Estate: Saloy, Davao, Philippines No. of Farms: 15 - 16 farms Forastero Trinitario Blend
The word “mana” in Filipino means “inheritance.” We have named our blend as such as the community we source it from, Saloy, Davao, are primarily made up of generations of cacao farmers with a rich history.The beans from their farms have rich flavors of purple flowers, cherries, rum, caramelized apple, sweet banana, sweet pumpkin, and cashew apple.
AVG BEAN WEIGHT (G)
Purple Flowers Cherries Rum Caramelized Apple
Fermentation : 4 to 5 days Number of turns : 2 Pre-drainage : Yes Drying : 8 to 10 days
1
Sweet Banana Sweet Pumpkin Cashew Apple
SIZE (BEANS/100G)
100
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Our Cacao Producers
PAQUIBATO
Total farmland
Total land for cacao
91.85
62.1 hectares
hectares
Located on the opposite side of the mountain from Saloy, Paquibato is a special community where more farmers are focusing on cacao farming to help break the cycle of conflict.With abundant coconut and other fruit trees, they grow some of the best cacao in the Philippines. The area used to be home to the indigenous tribes of the Ata-Uvu-Manobo, or “dwellers of the highland” who inherited the rich culture of the Negritos and Malays. It is the source of one of our single estate origin bars, named after their town.
It is also in Paquibato where one of our partners, Mr. Jose Saguban resides. In 2019, he brought honor to the country when his beans won among the Top 20 Best Cacao Beans in the World by the Cocoa of Excellence Awards during Salon du Chocolat in Paris.This is the first time the Philippines has received this award.
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Our Cacao Producers PAQUIBATO
Mang Jose has recently passed away in July 2021.We want to continue to honor his memory and achievement in bringing home a historic first for the Philippines. He remains an inspiration to us and the cacao farmers all over the country.
Floral and nutty taste with hints of raisin and pineapple Flavor Profle:
PAYMENT TO FARMERS
WEIGHTED AVERAGE PRICE / MT
PHP
USD
BEAN TYPE
PHP
USD
Total Payment to Farmers
₱ 3,228,127.00
$64,562.54
₱ 40,513.64
Wet Beans
$ 810.27
₱ 457,338.10
Included Premiums
$9,146.76
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Our Cacao Producers
CACAO BLEND FEATURE: PAQUIBATO
PAQUIBATO
Estate: Paquibato, Davao No. of Farms: 100 - 150 farms Trinitario Blend
Auro Chocolate and Jose Saguban of Paquibato made history by winning the first ever Top 20 best cacao beans in the world for the Philippines during the 2019 International Cocoa Awards (ICA). Our Paquibato blend hail from a special community where more farmers are focusing on cacao farming to help break the cycle of conflict. With an abundance of coconut and other fruit trees, they grow some of the best cacao in the Philippines. Their beans have rich flavors of forest valley flowers, dark honey, caramelized nuts, peach, and citrus.
AVG BEAN WEIGHT (G)
Forest Valley Flowers Dark Honey Caramelized Nuts Peach
1
SIZE (BEANS/100G)
Citrus
100
Fermentation : 5 to 6 days Number of turns : 2
Pre-drainage : Yes Drying : 5 to 6 days
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Our Cacao Producers SOCIAL IMPACT
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Social Impact MAKING THE CACAO JOURNEY IMPACTFUL
Making the Cacao Journey Impactful We want to further demonstrate our commitment to creating a long-term positive impact on the lives of our partner farmers through community programs that address their needs, and potentially open new opportunities for their cacao and land.
Improved Cacao Farmer Program In the past year, we have taken our time to look at the journey of each of our cacao farmers to understand how we can improve our partnership. In doing so, we have made adjustments to the services and journey they can have as our official partners.
Auro Cacao Champion
Application
Offcial Auro Partner
Auro Community Programs
Auro Cacao Champions
Quarterly Farm Assessment
Application Process
Farmer Onboarding
Supply of Cacao Beans
Auro Training Program
Farm Productivity Assistance
A New Cacao Journey
Monitoring Farm Improvements
Auro Cacao Champion
As part of our mission, we want to go beyond with our partnerships and help empower and capacitate our partner farmers.Which is why we have started to rethink the journey we can offer to cacao farmers. Our new, revamped program now considers how we can help improve the performances of each of our partner farms with the help of our own cacao experts and agriculturists with better training, a quarterly assessment of their farms, productivity assistance, and programs that can help improve their quality of life. In addition, we want to honor or reward the farmers who perform well by hailing them as our Auro Cacao Champions.
Through our team of technicians and agriculturists, we conduct field visits and quarterly monitoring of the performances of the farms of our partners.They are rated according to a scorecard we have formulated to help understand the performance of each farmer.This data is shared with them as our team provides much needed advice for improvement of their farms. Those who are consistent and continuously improve are able to access more of our ongoing and upcoming community programs that can provide even more opportunities for them.
To recognize our farmers who have been doing an outstanding job and have been long-time cacao partners, we have launched a title to designate them as our Cacao Champion. By being one, they become our trusted partners that offer more opportunities for programs, and even become involved in the training or assessment program that we do. We aim to empower more farmers to become cacao champions and perhaps expand our cacao journey program to become even more impactful in the future.
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Social Impact
ORGANIC CONVERSION PROGRAM (OCP)
The Organic Conversion Program (OCP) is an initiative we have launched to support and assist our participating partners in their organic conversion journey. Obtaining an organic certification from international certifying bodies provides great benefits for both the farmers and the environment. For the farmers, it opens up new markets that they previously could not access.
For the environment, this means the elimination of the harmful chemicals involved in conventional farming methods, allowing the area to be safer for nature and the animals that thrive there. It also makes the land healthier for the use and benefit of future generations. For this purpose,Auro Chocolate has launched the Organic Certification Program (OCP) to assist our farmers in obtaining the tools and knowledge they would need to preserve the organic integrity of their cacao beans and create a positive impact to the environment.
To achieve this, we have established three (3) action steps that will enable our partner communities to become fully certified organic farmers:
Sponsoring the Organic Applications
Conduct Trainings
Conversion of Practices to Organic
1
2
3
Auro Chocolate will be sponsoring the certification by covering the full cost of the farmers’ application for organic certification. In addition, their cacao will be purchased at an agreed premium price as long as they pass the prescribed organic standards.
We conduct free, regular training on Good Agricultural Practices (GAP) and organic farming standards with a partner organization to equip our partner farming communities with the knowledge they need.The non-governmental organization of Magsasaka at Siyentipiko para sa Pag-unlad ng Agrikultura (MASIPAG) is currently providing us technical assistance in conducting our organic training sessions.
We help monitor the progress of our partner farmers through the development of an Internal Control System (ICS), and assist them whenever necessary as they change and improve their practices in accordance with the standards set by organic certifying bodies.
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Social Impact ORGANIC CONVERSION PROGRAM (OCP)
The Saloy Organic Farmers Association (SOFA) and the future with Organic Cacao
Our current beneficiary for this program is a group of smallholder farmers in Saloy, Davao - one of our dedicated partner communities since the beginning of our chocolate journey in 2015.They have formed a people’s organization called the Saloy Organic Farmers Association (SOFA) under our Organic Conversion Program (OCP). They are currently led by Farmer Policarpo Enricoso, Jr., the elected President who also serves as a pastor for their community.Through this program, we are able to provide training on proper organic practices despite the challenges, the cacao farmers of Saloy are determined to gain their certification by 2023.
Since the previous year, they have taken several steps to convert their farms.We work closely with them, providing assistance and support whenever we can. Several new farmers have also expressed interest in the program.We have already met with new potential batches of our Organic Conversion Program that will pave the way for more sources of healthier, fine flavoured cacao. It has always been our goal that the Organic Certification Program open the path for more cacao farmers to take up organic farming for a long- term positive impact on the health of the land and communities that live in it.We look forward to a more organic future!
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Social Impact CROWDFARMING
CrowdFarming has been one of our longest and trusted partners in shortening the supply chain.The project provides a direct relationship between individuals and the farmer by enabling the adoption of a cacao tree in exchange for receiving their harvest in the form of assorted Philippine chocolate bars. Through the CrowdFarming website, customers adopt trees from farmers who are dedicated to nurturing them through organic farming methods.Through this program, assistance is provided to farmers for the cultivation of their trees and an incentive is given by Auro Chocolate for their cacao.
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