Auro cacao

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

www.aurochocolate.com

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