{"id":24205,"date":"2017-11-15T17:42:08","date_gmt":"2017-11-15T22:42:08","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/casa-luker-unveiling-the-sweet-future-for-colombian-cocoa-production\/"},"modified":"2017-11-15T23:00:36","modified_gmt":"2017-11-16T04:00:36","slug":"casa-luker-unveiling-the-sweet-future-of-colombian-cocoa-production","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/casa-luker-unveiling-the-sweet-future-of-colombian-cocoa-production\/","title":{"rendered":"Casa Luker: Unveiling the sweet future of Colombian Cocoa Production"},"content":{"rendered":"

According to the International Cocoa Organization (\u201cICCO\u201d), the global deficit of cocoa will reach approximately 1 million tons by 2020 as demand continues on the rise, potentially leading to extinction of the seed [1]. Research from the Intergovernmental Panel on Climate Change (IPCC) forecasted in 2014 that countries within the area suitable for cocoa to thrive will experience a 3.8\u00b0F (2.1\u00b0C) increase in temperature by 2050 and hence will see a marked reduction in suitable cultivation area [2].<\/p>\n

2016 proved to be a year of success in the Colombian cocoa industry as key players like Fedecacao (the Colombian National Federation of Cocoa Producers), the Ministry of Agriculture and members of the private sector such as CasaLuker, a family business with over 100 years of operation, have intervened to support growth. They have worked on developing technical expertise and investing on R&D for farmers to adapt to a changing environment. Despite multiple hits from natural phenomena like El Ni\u00f1o, the country has been able to increase production by 3.6% YoY<\/strong>, setting national record highs [3].<\/p>\n

Will advancing harvesting techniques and innovation for sustainable practices in the industry be enough to offset the effect of climate change and open opportunities for profitability and growth?<\/strong><\/p>\n

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Colombian National Cocoa Production.\u00a0Data taken from Source [4]. Graph by author.<\/i><\/figcaption><\/figure>Colombia, 8th place in the ICCO ranking, has around 27,000 cocoa producers with crops that expand to an area of 164,000 hectares. 350 municipalities of the country produce the plant, approximately 38,000 families work on harvesting alone and over 100,000 jobs depend on the national supply chain of cocoa [3]. In spite of the impact of 15 months of the El Ni\u00f1o phenomenon that hit the country in 2016, one of the strongest ever recorded, national cocoa production grew to an outstanding 56,785 tons<\/strong> [4].<\/p>\n

Founded in 1906, CasaLuker<\/strong>, one of the most successful entrepreneurial efforts in Colombia, has positioned itself as one of the key players in the cocoa and derived products business, owning 31% of the exports of such products, as of 2013. With presence in 41 countries, the company is recognized by the ICCO as an exporter of 100% Fino de Aroma (high quality) cocoa, a highly regarded quality in the international markets [5].<\/p>\n

CasaLuker has acknowledged the challenges that changing environmental conditions bring to the future of the businesses and therefore has invested in developing one of the few centers of research and development in the world that dedicates to modernize practices in the harvesting process of cocoa, called \u201cLa Granja Luker\u201d<\/strong> (\u201cLuker\u201d farm<\/em>). Founded in 1962 [6], the main purpose is to train local farmers to improve critical practices in harvesting under changing environmental conditions, fertilization techniques, pruning methods, plantation layouts and efficient pest management to increase productivity and ensure sustainability. According to CasaLuker\u2019s statistics, Granja Luker trains approximately 700 farmers per year and has trained over 30,000 farmers over the past 50 years. Their laboratories have discovered 14 genome varieties of cocoa [5] through applied research projects. Through continuous innovation, the company has been able to achieve major improvements that have had long lasting effects on the farming community.<\/p>\n

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Regions in Colombia where ‘Fino de Aroma’ Cocoa is harvested. Source [9].<\/em><\/figcaption><\/figure>
\nGiven the company\u00b4s recent success in their international business, growing 8.5% YoY, management efforts have focused on launching new products, opening new channels and platforms of commercialization and distribution to be more efficient and to improve their client reach5, setting ambitious goals for 2017, expecting 12% growth YoY. In addition, the company has made debut in important industry fairs all over the globe and has invested in redesigning the brand to raise its attractiveness for investors [5]. CasaLuker has also engaged in partnerships with the U.S. Agency for International Development (USAID) to create a community-owned cocoa cooperative in a high-risk region as an alternative to illegal production of coca, violence and crime [7].<\/p>\n

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