ANALYSING THE SUCCESS OF VERTICAL INTEGRATION THROUGH SMALL COFFEE GROWERS COOPERATIVES

PRESENTED BY – APARNA , DEVESH SHUKLA , HEMANTH , HARSHAD , SWIKAR

AGENDA

ABOUT SMALL COFFEE GROWERS JUSTIFICATION OF TOPIC OBJECTIVES INDIAN COFFEE VALUE CHAIN METHODOLOGY A STUDY OF COMARK QUESTIONAIRRE OUTCOME & BENEFITIARIES

About Small Coffee Growers

Coffee assumes importance due to livelihood dependency of large number of small growers.

Global coffee market is characterized by enormous clout of roasters and exporters at the upper end of the value chain (who appropriate over 60% of value)

Value accrued to primary producers only 6-7% of the entire value chain.

Success of cooperatives - Vertical integration , origin marketing, branding

We study on the factors affecting the success of cooperatives

Justification for Research Proposal

PRICE REALISATION LACK OF MARKET AWARENESS CONTROL BY LOCAL AGENTS HIGH LABOUR COSTS QUALITY REQUIREMENTS KNOWLEDGE DISSEMINATION

Indian Coffee value chain

METHODOLOGY Area of Study - small coffee growers of Sulthan bathery, Wayanad

and Kodagu coffee growers’ co-operative society. Sampling method – Purposive sampling – Stratified approach Sample size

- 5 small growers each from Sulthan bathery, Wayanad and Kodagu are selected – Those who are not into cooperatives.

-Of the farmers who have enrolled in cooperatives 5 small growers of different land holding size are selected.

-Cooperatives from the above mentioned regions are also selected. Tool for data collection – Questionnaire and secondary sources

A STUDY OF COMARK

COMARK is the only national level co-operative institution of coffee growers in the country.

Started in 1992 with the shared capital from nearly 5,500 coffee growers and the government through the National Cooperative Development Corporation.

In the first year, the co-operative made a significant amount of profits by selling 6,000 MT in the domestic market and distributed profit to its members.

Afterwards, co-operatives started selling their members’ coffee at the ICTA auction. But as the volumes sold at this auction decreased, co-operatives failed to adapt to new marketing strategies, including direct export, so confidence was lost on the cooperative.

QUESTIONNAIRE• Post harvest supportTimely support from Nationalised and cooperative banks?• Certification and Branding• Technical support

GENERAL

• Rainfall insurance, weather based insurance, replanting subsidy, water augmentation support, support for pollution abatement measures

• Wage incentives , community based labor poolingPRODUCTION

SUPPORT

• Timely support from Nationalised and cooperative banks?PRICE VOLATALITY

MARKET ACCESS

DOMESTIC DEMAND • Is support for branding provided for cooperatives?

• Is support received from inter sectoral partnerships like NGOs , ICO, Coffee Board and private places ?

OUTCOME & BENEFITIARIES Key areas that measuring the success of cooperatives are vertical integration and

origin marketing. Our research proposal is to do a comparative study of the factors affecting

cooperatives, so that efforts could be taken in this direction to help more small growers in participating in cooperatives and getting benefitted through vertical integration.

Small coffee growers who have better say in pricing and having their origin carried throughout.

Government organizations who could provide policy support. Members of NGO’s who involved as institutional bodies for imparting best

practices. Cooperative banks and nationalized banks who ensure liquidity. Consumers who can be connected to farmers and get value for their pay

Beneficiaries