Auro Chocolate buys P23 million worth of cacao from local farmers

MANILA, Philippines — Premium chocolatier Auro Chocolate paid at least eight percent more to local cacao farmers in the previous cropping season amid higher prevailing prices caused by the global shortage of the commodity.

In its third sourcing report, the tree-to-bar chocolate maker disclosed that it paid P23.68 million to local farmers in the last cropping season that spanned from September 2022 to December 2023.

The amount was 8.7 percent higher than the P21.78 million it paid in the previous cropping season of September 2021 to August 2022.

The company bought 161.83 metric (MT) tons of cacao in the last cropping season, a dip from the previous season’s 168.98 MT due to various production difficulties that farmers faced including extreme weather conditions.

The firm also observed one to two months delay in the start of the season which it attributed to the changing climatic conditions in its partner farms. The company added that some cacao farmers in Davao shifted to durian due to more lucrative returns given the government support and the growing international demand for the fruit.

Nevertheless, Auro said it remained as one of the highest payers of cacao in Mindanao as it offered prices above prevailing commodity prices. The firm said its buying price was 10 percent to 45 percent on top of the local cacao farmgate prices.

“This is to reward our partner farmers for the high quality and sustainably sourced cacao beans they produce,” the company said while noting that it paid P2.964 million in total premium to its partner farmers.

Auro pointed out that 46 percent of its total costs went directly to the farmers while the remaining 54 percent were spent for post-harvest process, storage and logistics as well as chocolate production itself.

The total payments it made to farmers marked a one percentage point increase compared to the firm’s previous sourcing report wherein it disclosed that 45 percent of its costs went directly to farmers.

“This development is encouraging for us. We aspire to sustain and possibly enhance this figure in the future,” it said.

Since 2016, Auro has bought over 818 MT of cacao from local farmers valued at more than P113 million.

In the previous cropping season, Auro partnered with three cacao producing organizations, one agricultural development partner and 60 smallholder farmers representing more than 2,000 families and around 600 hectares of farmland.

Auro plans to enhance its traceability system to be able to verify if any significant deforestation and production challenges occur in the farms of their partner farmers to be able to provide the necessary assistance.

The company added that it plans to establish its own cacao farm in the future to boost its supply of cacao beans and generate employment in local communities.