CCD: Soya cooperatives march into branding

Abstract

Trilochan Sastry was the Founder, Secretary and CEO of Center for Collective Development (CCD), a fully autonomous NGO, working for creation of wealth for the poor. With the underlying theme to “Help them to help themselves” (a popular saying by Swami Vivekanandha), CCD tries to help small and marginal farmers in ways like market-linkages, agri-inputs, credit access, agro-processing and so on. This year 2013-14 had started very positively with increase in the profits made by the farmers but has thrown up questions on long term sustainability and profits. From 3.8 million tons in fiscal 2011-12, total shipments from India fell to 3.4 million tons the following year and then to 2.8 million tons in 2013-14. China seems to have captured a part of the market vacated by India. Given the massive supply surge anticipated, bean, meal and oil prices are already showing signs of weakness. Private forecasters see soya farm-gate prices collapsing by a fifth to below $300 a ton. While under normal circumstances, local prices would remain firm, huge supplies in the world market are sure to pressure the domestic market. Given this weak outlook, Trilochan knew he must look at a way of hedging the risk faced by CCD. There was still one week left for the annual Federation meeting and he decided to take a step back and look at all the options available to him and to seek answers to the nagging questions that occupied him. He needed a come up with a well thought out option before he discussed them at the meeting.