Choba Choba embodies a pioneering and inclusive approach to reshaping the chocolate value chain. This content presents a selection of our key practices, reflecting our vision and unwavering commitment to a more sustainable cacao and chocolate industry. By sharing this information, we aim not only to provide transparency about our methods but also to foster peer learning and knowledge exchange through an open-source approach.
Farmer-owned
Most of the 6 million small-scale cacao producers worldwide are marginalized, earning insufficient compensation to sustain a dignified livelihood from their agricultural activities. In 2015, alongside 36 cacao-producing families from the Alto Huayabamba valley, we offered a positive alternative to a destructive industry. Together, we founded Choba Choba, the first Swiss chocolate brand where cacao producers are co-owners, main shareholders (29.9% of voting rights in 2024) and sitting at the board of directors of our private company. We share the same vision. We work hand in hand and make decisions together. An innovative and awarded model (Ashoka-UBS Social Innovator 2016, SEIF Awards for Social Entrepreneurship 2016, Viva Premios Schmidheiny 2018, Prix Suisse de l’Ethique 2021) delivering real economic, social, and environmental impact on the ground.
Vertically integrated value chain
Our approach fundamentally redefines the traditional cacao supplier-buyer relationship, often resulting in divergent interests and significant power imbalances. At Choba Choba, we operate as an impact-driven ecosystem, fully embracing the interdependence between our farmer cooperative in the Peruvian Amazon (Cooperativa Agraria Cacaotera Choba Choba Ltda.) and our chocolate company in Switzerland (Choba Choba AG). Both entities share aligned interests and thrive together, embodying a model of mutual reliance and collaboration.
Our chocolates are exclusively crafted from cacao grown on 85 agroforestry plots, ranging from 0.2 to 3.2 hectares, owned by the 30 cooperative members. These plots are located along the banks of the Huayabamba River in the communities of Pucallpillo, Santa Rosa, Pizarro, and Bello Horizonte. This deep connection to the land is personal—we know every farmer because we are the farmers.
Farmer entrepreneurship program
One of Choba Choba's core principles is that for cacao producers to thrive, we must combine resilient agricultural practices with strong entrepreneurial skills to effectively manage and administer their production units. To support this vision, we developed the Farmer Entrepreneurship Program, designed to empower farmers to adopt a professional approach to cacao farming based on their individual preferences and capacities.
Each farmer works within the framework of a Yearly Operating Plan, enabling them to set clear goals, plan their activities, and monitor progress efficiently. With the support of a Farmer Field Book and digital tools, they can track their expenses, activities, and income in a structured manner. To further enhance their capabilities, the program includes ongoing training in basic accounting and finance, helping farmers understand and apply key concepts for managing their agribusiness effectively.
Participation in the program is voluntary and tailored to each farmer's unique situation, ensuring that it aligns with their needs and aspirations. The impact of this approach is tangible: between 2020 and 2023, both average farm yields and average farmer revenues increased (respectively by 82% and 48%).
By combining practical tools, continuous learning, and a personalized approach, the Farmer Entrepreneurship Program helps farmers not only improve their agricultural productivity but also achieve long-term financial sustainability and resilience.
Agroecology and Agroforestry Systems
We cultivate our cacao following agroecology and agroforestry principles, emphasizing nature-based solutions and nutrient recycling. This commitment is formalized and enshrined in the Articles of Association of the Choba Choba Cooperative.
Agroecology, a conservation-focused and restorative approach to farming, enhances agricultural resilience and generates positive environmental outcomes. It includes practices such as restoring and enriching degraded soils, conserving and strengthening biodiversity, and boosting ecosystem services. Agroforestry, on the other hand, intentionally integrates trees and shrubs into agricultural systems. On our farms, this approach involves the strategic coexistence of cacao trees with shade trees, fruit trees, and legumes. This setup not only provides essential shade for cacao trees but also fosters organic matter production, improves soil fertility, reduces erosion risks, and creates additional income streams for farmers.
These practices represent more than agronomic innovations blending traditional knowledge with modern techniques—they are actionable steps toward environmental preservation. The tangible benefits include improved water quality, local climate regulation, biodiversity conservation, and greater resilience to climate change.
In 2021, we committed to a full transition toward diversified agroforestry systems. With support from FiBL and Ecotop—renowned organizations in agroforestry design and management—we launched an ambitious Renovation, Rehabilitation, and Installation plan based on dynamic agroforestry guidelines. Each plot was co-designed with the farmers, creating tailored models and sponsoring their transition. Our models meet the following minimum requirements:
Here is a list of some of the preferred timber and non-timber, perennial and non-perenial species used by the Choba Choba farmers on their agroforestry plots: aguaje, bolaina, canavalia, caimito, caoba, capirona, cedro, chirimoya, cilantro, ciruelos, cocona, dale dale, estoraque, erythrina, flor de Jamaica, frijol de palo, guaba, guanabana, huayruro, inga, ishpingo, limones, mandarina, mango, marupa, naranjas, pacay, palipero, palta, platano, pijuayo, piña, pino chuncho, shica shica, shihuahuaco, tornillo, yuca, zapote.
Carbon Footprint: Net Positive through Regenerative Agroforestry
In 2024, we conducted our first carbon evaluation, using Equipoise tools and the methodology championed by SME Climate Hub to estimate our emissions and footprint. This assessment revealed a total carbon footprint for the fiscal year 2024 of 194,522 kgCO₂e (194.5 tons CO₂e), with the majority stemming from Scope 3 emissions, including purchased goods & services (57.4%) and business travel (32.4%).
However, thanks to our agroforestry farming system, we are proud to say that we fully balance these emissions—and beyond. Our commitment to regenerative agriculture and agroecology enables us to sequester more carbon than we emit, making Choba Choba a net-positive company.
Agroforestry, particularly highly diversified systems like the ones we promote in the Huayabamba Valley, has an incredible capacity to capture and store carbon. A conservative estimate suggests that these systems can sequester 5 tons of CO₂e per hectare per year. With 70 hectares of agroforestry cacao plantations, our farms store approximately 350 tons of CO₂e annually. This means that via our farming system, we capture significantly more carbon than we emit.
Another insightful calculation highlights the remarkable carbon balance of our farming system. While cacao farming itself emits carbon—estimated at 1 kg of CO₂e per kg of diversified agroforestry cacao—our total production area, with an average yield of 525 kg per hectare, generates only 37 tons of CO₂e per year. At the individual level, each farmer cultivating an average of 2.5 hectares of agroforestry cacao stores 12.5 tons of CO₂e per year while emitting just 1.3 tons. This results in an extraordinary 10:1 sequestration ratio, reinforcing the power of regenerative agriculture as a climate solution.
With every step forward, we bring more farmers into our regenerative system, expanding agroforestry and agroecological practices across greater landscapes.
Traceability and deforestation-free cacao
Choba Choba is committed to no-deforestation farming. As a human-scale initiative, we are able to georeference all our cacao plots with remarkable precision. Instead of simply marking points on a map, we use polygons to outline the exact boundaries of each small cacao plantation. This detailed mapping shared transparently on our website with the full consent of Choba Choba farmers, is accessible to anyone.
This georeferencing allows Choba Choba—and others—to compare our data with satellite imaging tools such as Geobosques and Global Forest Watch. These comparisons are vital to ensuring our cacao is deforestation-free and fully compliant with the European Union Deforestation Regulation (EUDR). Beyond meeting regulatory requirements, protecting forests and harmonizing agriculture with tropical ecosystems are central to our mission and values.
In 2023, Choba Choba reinforced this commitment by signing the Acuerdo Cacao, Bosque y Diversidad (Cacao, Forests, and Diversity Agreement). This agreement, spearheaded by the Coalition for Sustainable Production in Peru, is a multi-stakeholder initiative designed to address market demands for sustainability while advancing Peru’s climate goals. Its aim is to position Peru as a leading exporter of high-quality cacao with verified origin attributes, free from deforestation, by 2025.
Conservation and use of cacao genetic diversity
Peru, a megadiverse country and a vital center of genetic resources, is home to an extraordinary diversity of cacao. Remarkably, 60 to 70% of the recognized genetic groups within the Theobroma cacao species trace their origins to Peru. However, this rich diversity faces significant threats—particularly in the San Martín region—due to the rise of monoclonal cacao farming, where only a single variety is cultivated. This farming method promoted as part of a broader development strategy to provide alternatives to coca cultivation, has unfortunately led to a substantial loss of local cacao diversity.
In 2017, with the support of our community, we launched the Nativo Project, an ambitious initiative to preserve and study the cacao diversity of the Huayabamba Valley. The first phase, conducted between 2018 and 2019, involved identifying, georeferencing, and documenting the wide variety of cacao trees found in our plantations and the surrounding rainforest. Today, 89 distinct cacao varieties have been planted and safeguarded in our conservation garden in the Huayabamba Valley.
From this collection, 30 varieties have been pre-selected based on promising agronomic and aromatic traits. Our ongoing research focuses on evaluating their productivity, tolerance to pests and diseases, sexual compatibility, sensory profiles, and genetic composition. By doing so, we aim to identify and propagate the most exceptional cacao varieties—ones that benefit both farmers through improved resilience and yields, and chocolate enthusiasts with their unique and superior flavors.
Purchasing practices
The VOICE Network identifies Good Purchasing Practices as one of three essential pillars—alongside Good Agricultural Practices and Good Governance Practices—on which sustainability in the cacao sector can be built. At Choba Choba, we are dedicated to creating opportunities and fostering an enabling market environment that allows cacao farmers to thrive.
Long-term commitments and favorable purchasing practices are at the heart of our approach. Each December, the Choba Choba Cooperative proposes cacao volumes for the upcoming harvest, and every year, we commit to purchasing 100% of the first-grade organic cacao available—typically representing 85% to 95% of the total production. To support the cooperative, we also provide advance payments, ensuring they have the necessary working capital.
In 2024, we signed a purchase agreement on January 15, for 20 tons of cacao, valued at PEN 800,000 (USD 215,000) EXW Juanjui. This translates to USD 10,750 per ton—more than double the market price at the signing of the contract—reflecting our commitment to rewarding pricing and a sustainable livelihood for farmers.
Price and price setting mechanism
Global cacao prices, determined on the London or New York stock exchanges, dictate the income of cacao producers worldwide. While differentials and premiums may occasionally be applied based on origin or certification programs, prices remain at the mercy of a volatile market that fluctuates rapidly and unpredictably. This instability creates uncertainty for producers, who bear the full burden of price fluctuations. As long as cacao is treated as a commodity—its prices dictated by stock exchange speculation—producers remain powerless price takers, with little to no negotiating leverage. This systemic imbalance is a key driver of poverty in cacao-producing regions.
At Choba Choba, we reject this broken system. Our price-setting mechanism is democratic and protects farmers from the relentless volatility of global markets. Each year, during the cooperative’s General Assembly, farmers themselves propose, debate and decide on prices and price-setting mechanisms. This approach ensures fairness, transparency, and farmer empowerment.
Choba Choba's cacao pricing structure is based on a minimum guaranteed price that is 2.5 times higher than fair trade standards. This minimum farmgate price of PEN 20.00 (USD 5.40) was calculated and approved by the farmers to ensure a sufficient level of income to cover their families' basic needs (see section about Living Income below), even in the event of price drops. When market prices are high, we naturally adjust our prices accordingly.
In addition to this price paid directly to the farmers, we also provide four premiums to the cooperative, which fund:
These premiums are intended to support the fundamental pillars of a sustainable and responsible industry while ensuring that Choba Choba continues to offer its customers exceptional quality in terms of flavor, social impact, and environmental sustainability.
Note: In the rare instances where chocolate brands disclose pricing, they often refer to the "prices paid to farmers." However, these are frequently the prices paid to exporters or farmer organizations, which naturally retain a margin to cover their operating costs. As a result, these figures provide little to no insight into the actual price farmers receive.
We believe all chocolate brands should have the transparency to disclose the actual farmgate prices in their supply chains. Unfortunately, as an industry, we are still far from achieving this level of accountability.
On Living Income
The Living Income (LI), as defined by the Living Income Community of Practice, is "The net annual income required for a household in a particular place to afford a decent standard of living for all members of that household. Elements of a decent standard of living include: food, water, housing, education, healthcare, transport, clothing, and other essential needs including provision for unexpected events". Choba Choba recognizes Living Income as a fundamental human right and a crucial foundation for fostering thriving farmers and a sustainable cacao sector.
In 2022, we began exploring the concept of Living Income and how to address it within our value chain. The Living Income Reference Value for rural Peru (PEN 2,320/month), published by the Global Living Wage Coalition, served as a valuable tool to initiate our engagement with the topic.
In 2023, for the first time, we calculated the Living Income gap for a representative sample of our cooperative members, using primary data collected by farmers throughout 2022. This analysis was based on the updated Living Income Benchmark Study conducted in Peru in May–June 2022 (PEN 2,371/month). To enhance accuracy, we tailored the benchmark to reflect the actual household size of each farmer for personalized calculations.
In 2024, we evaluated how many farmers were able to sustain themselves in 2023 using cacao farming as their primary source of income. Following our established methodology, we maintained the criterion that cacao income should represent at least 80% of a Living Income. Using a sample of 13 farmers with reliable primary data, we observed significant progress:
Our comprehensive evaluation played a crucial role in shaping our Living Income strategy, leading to a revision of our Living Income Reference Price (LIRP) in 2024. Grounded in real data on productivity and farm size, we increased this price to PEN 20.00/kg—a concrete step toward closing the Living Income gap for all farmers, with particular attention to those in more vulnerable situations.
It's worth mentioning here that the market price rally in 2024 brought a highly satisfying outcome: all farmers in the Choba Choba value chain achieved a Living Income this year primarily through their cacao farming activities.
Note: Determining whether farmers earn a Living Income is a complex process involving multifaceted calculations, requiring accurate primary data and consideration of individual contexts. We encourage all industry players to approach this topic with humility and caution, ensuring that claims are grounded in robust data and transparent methodologies.
Gender Equity at Choba Choba
Women play a vital role in Choba Choba. Both the General Manager and the President of the Choba Choba Cooperative are inspiring female leaders, and women farmers hold 50% of the six key positions across the cooperative’s Board of Directors and Surveillance Board. Additionally, María del Pilar Castillo, General Manager of the cooperative, also serves on the Board of Directors of our private company, Choba Choba AG.
However, gender equity is a significant challenge in the cacao sector, and the Huayabamba Valley is no exception. Our deep understanding of our inclusive value chain highlights persistent gender disparities in farm management, which directly impact income, productivity, and economic resilience. A key challenge is that women farmers tend to rely more on external labor to maintain their plots. In an area where labor availability is scarce, this dependence leads to:
Among the 12 women members of our cooperative in 2023, 80% had productivity below the cooperative’s average, underscoring the need for targeted action. Our approach to addressing these disparities includes:
By tackling these systemic challenges, we aim to create an environement where women farmers can thrive.
Child Labour and Human Rights
It's important to clarify that not all forms of work by children are considered child labor in need of elimination. Positive forms of child participation, such as assisting in a family business or earning pocket money outside of school hours, can contribute to a child's development, support family welfare, and help prepare them for adulthood. However, child labor remains a significant challenge in the cacao industry, and while it’s not widespread in Peru, we recognize that it’s an issue that must be addressed globally.
At Choba Choba, our cooperative is made up of 30 families, and as we often say, we are the farmers. This strong connection allows us to ensure that no form of child labor, forced labor or human trafficking is present on our farms. We are deeply committed to responsible practices, which include strict prohibition on child labor. We do not engage in, directly or indirectly, any form of child labor within our cacao production operations, whether on or off the farm. Our cooperative fully adheres to national and international labor laws, including the conventions set by the International Labour Organization (ILO) regarding child labor.
For full transparency, a formal statement from our cooperative on this matter is available upon request.
Organic Certification, third-party ingredients, and food safety
All Choba Choba farmers are fully committed to organic farming, strictly prohibiting the use of chemical inputs such as pesticides and synthetic fertilizers. Our cooperative in Peru holds organic certification, and any new farmers joining our organization must comply with organic farming practices and obtain certification. This commitment extends to our chocolate products, which are also certified organic. We take great care in selecting additional ingredients, ensuring they meet the same high standards.
Sometimes, this leads to difficult decisions. For example, we discontinued our best-selling 58% Blood Orange chocolate because we were unable to find an organic-certified alternative for the blood orange inclusions. At Choba Choba, sustainability and integrity outweigh commercial considerations.
Another critical focus area is addressing cadmium (Cd) content in cacao. Cadmium is a naturally occurring heavy metal found in soil, water, and air, with levels further influenced by human activities. Due to growing concerns about food safety, the European Union established Regulation (EU) No 488/2014, which sets strict maximum cadmium limits in chocolate and cacao derivatives, ranging from 0.10 to 0.80 ppm depending on the product type. To ensure compliance, we rigorously analyze cadmium levels in our cacao shipments and chocolate products. Beyond compliance, we actively collaborate with research partners to explore innovative solutions for reducing cadmium uptake in cacao trees, contributing to safer and more sustainable farming practices.
We do not (yet!) produce our own cacao butter, so for now, we rely on another supply chain to source this ingredient. However, we are committed to making this sourcing as transparent and impactful as possible. That’s why we exclusively source our cacao butter from organic and Fairtrade-certified organization Fundopo in the Dominican Republic (“identity preserved” traceability system), arguably the most ethical (and expensive) cacao butter sourcing available on the market. This enables us to extend traceability requirements and deforestation-free guarantees to our cacao butter supply chain.
In 2024, the cacao butter we imported for the total production of our chocolates amounted to the equivalent of 8 tons of cacao beans.
On Ethical Certifications
Choba Choba has moved beyond fair trade, even though it finds its origins in that model. With extensive experience in ethical certifications, both from the perspective of farmers and buyers, we have come to the following conclusions:
We recognize and respect certifications for what they are and acknowledge that Fairtrade remains the most established and trusted ethical label in the cacao industry. We also applaud their significant efforts in raising public awareness. However, we believe our co-ownership and inclusive value chain model offers a more effective approach to delivering real impact at the farmer level.
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