Chocolatemakers Peru Local partner Cepicafé wants to add more value to the fine cocoa produced by its members. Members produce the high quality criollo cocoa bean, which is used in dark chocolate. Criollo chocolate has a distinctly reddish colour, and an equally distinctive taste. Cepicafé is a producer owned association with 6,000 members. All members are organic and fair trade certified or in the process of becoming certified. Its main activities are trading and export of green coffee, cocoa beans and raw sugar. Applicant Chocolatemakers B.V., from the Netherlands, started its production of premium range chocolate in 2011. Demand for its products is increasing. For that reason, applicant is interested in the liquor and chocolate that could be produced in Peru. Partners will establish the first production facility in Peru for cocoa liquor and chocolate from fine cocoa beans in small batches. International chocolate makers that now buy the cocoa beans from Cepicafé have already expressed their interest in buying liquor from the new company.The production facility will be established in Piura, in the north of Peru. The project will have a positive impact for the members of Cepicafé, a minimum price for the cocoa beans will be guaranteed and members will share in the profits of the new company. Partners will establish a new company in which applicant will participate for 30% and local partner for 70%. The reason for this division is that local partner is financially much stronger and will be responsible for the day to day management.Corporate Social Responsibility (CSR)Partners will establish a formal CSR policy which will include health and safety, gender policy, employee participation, measures to prevent corruption and child labour. The new joint venture will be Fair Trade certified and Organic.Impact•	Employment and working conditionsThe joint venture will pay at least living wages. Labour contracts will include health insurance and pension benefits. Staff will receive training.•	Innovation/Transfer of knowledgeThe products, chocolate and liquor from the high quality criollo cocoa are new for Peru. The production method will also be new; the factory will be designed to allow small batch-processing to optimise efficiency (no unnecessary losses) and guarantee high quality. It will be the first facility in Peru which is able to process Fair Trade, organic criollo beans to make high quality liquor and chocolate.Logistics especially for local customers will improve; local customers can buy the product on the local market instead of importing and they can buy in small batches.The production facility will be Fair Trade and organic certified.•	Chain effectsImpact on local suppliersAll cocoa beans produced by members of the Association, will be purchased by local partner for a guaranteed minimum price. Part of the production will be sold to the joint venture. Other ingredients like sugar will be bought outside Peru as no organic sugar is produced in Peru.Impact on local customers or consumersLocal customers will be in the high-end chocolate making market; chocolatiers and restaurants. Partners expect to sell around 20% on the local market.The production of chocolate in Peru will replace import. Local clients can order more easily in small quantities. The locally produced chocolate will be less expensive and have a better quality.•	Impact on the sectorCoop NorAndino is a founding member of the ‘Asociasion de Pequenos Productores de Cacoa’. The joint venture will also become a member of this association. Through this network of twenty producer organisations information exchange will take place and dissemination of experience.•	EnvironmentThe cocoa is organic and the sugar and milk that will be used in the production process as well. The shells of the cocoa bean, which now will remain within Peru, will be used as compost to fertilise the cocoa farms. To avoid water use, drip irrigation will be promoted.•	Position of womenThe joint venture will employ at least 40% women in management and production. Furthermore, women will be encouraged to start their own business selling chocolate or guiding tourists on a chocolate tour. To establish a liquor (pure cocoa mass in liquid form) and chocolate processing plant in Peru with a capacity of 400 MT per year.