THE CENTRAL ARECANUT & COCOA MARKETING AND PROCESSING
COOPERATIVE LTD., (CAMPCO)
'VARANASHI TOWERS', MISSION STREET, MANGALORE - 575 001.
1. Introduction
Karnataka agriculture is one of the most essential attributes of State economy. Agriculture is
considered to be one of the primary occupations and about 71 percent of population is dependent on
agriculture either as farmers or agri. labourers. Prominent crops in the State are Paddy, Millets
Ground nut, sugar cane, fruits and vegetables, and plantation crops etc. Karnataka's agricultural
products also include raw silk which has the highest production range among all other states in India.
The State ranks second in plantation crops, like areca, coconut, coffee, cardamom, pepper, etc.
Cooperatives in the State are playing vital role in the production, storage, value addition and
marketing of agricultural produces. They are the countervailing force for acting on behalf of
farmers for fetching remunerative prices and stabilizing market rates for consumers. Among the
cooperative organizations in Karnataka, the Central Arecanut & Cocoa Marketing and Processing
Cooperative Ltd., (CAMPCO) is playing a significant role in the marketing and processing of areca
and cocoa and is very successful in protecting the interest of farmers.
2. Genesis of Campco
The Campco Ltd., as a "Co-operative" is a success story of the people. This Cooperative was formed
originally to protect areca farmers, who were being devoid of fair price due to middlemen’s
exploitation. Cultivation of Arecanut is mostly confined to States of Karnataka, Kerala and Assam,
but the consumption is spread all over the country. India is considered as the largest Arecanut
producing country in the world. A sudden marketing crisis in the year 1970-71, when prices of areca
registered a marked fall which caused considerable concern to the growers, Growers had been
thrown into panic with the prices coming down by half of what was prevailing till 1970-71 season.
This was the genesis for the setting up of this Co-operative Venture (what is popularly known as
The CAMPCO).
3. Organization & Management
The Central Arecanut & Cocoa Marketing and Processing Co-operative Limited popularly known
as “THE CAMPCO” was born and registered on 11 th July 1973 under the Multi State Co-
operative Societies Act 1942 and started its operation on 12/11/1973. Campco has membership of
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1.18 lakh farmers and 547 marketing societies with a total paid up share capital of ` 25.33cr., as on
31-3-11.
The area of operation of this cooperative for procurement and processing of Arecanut and Cocoa
extends to the States of Karnataka and Kerala, but for the marketing activity, the area has been
extended to the whole country. Arecanut purchase operations were extended to Assam, Andaman
and Goa.
The Management of CAMPCO vests with a Board of Directors. There are 17 Directors who are
elected as per the provisions of Bye-Laws. In order to speed up the activities of the Cooperative, the
Board has framed one Executive Committee consisting of 7 Members of the Board and one Business
Committee consisting of 9 Members of the Board. The Executive Committee and the Business
Committee will devote more time to stabilize and decide about the financial and business
transactions of the Institution.
4. Objectives of CAMPCO :
• Procuring Arecanut and Cocoa grown by member cultivators and if necessary, from other
growers on an agency basis or on outright purchase basis.
• Sale of Arecanut, Cocoa, rubber and other products to the best advantage of members and also
to advance loans to members on the pledge of goods and to do all other things necessary to
carry out the objective.
• To promote and develop Areca and Cocoa cultivation, marketing and processing.
5. Financial Background of CAMPCO :
(Rs. In lakhs)
S Particulars 2009-10 2010-11 % Growth over
N previous year
1 Share Capital 1932.58 2247.50 16.30%
2 Reserve & Other funds 5192.89 6887.49 32.63%
3 Total Owned Funds 7125.47 9134.99 28.20%
4 Net-worth 12318.36 16022.48 30.07%
5 Business Turnover 59187.01 68353.26 15.49%
6 Net Profit for the year 940.38 1295.99 37.82%
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6. Financial Support from NCDC
NCDC has played the role of a catalyst for the growth of Campco, by extending financial assistance,
to the extent of ` 3375 lakh through the Govt. of Karnataka and Kerala for the following purposes.
Sl. Purpose Assistance
No. provided
(Rs. In lakh)
1 Margin money for marketing activities 641.00
2 Processing (Copper sulphate) 8.00
3 Chocolate factory 6.18
4 Working capital 3000.00
Total 3655.18
7. Growth of Campco - Core Activities
Starting with its Head office at Mangalore in coastal Karnataka, the CAMPCO began with a handful
of procurement centres in Karnataka and Kerala. The Campco adopted a safe policy for purchasing
and marketing the commodity and maintaining standards in quality assiduously with the dedicated
cooperation of a network of diligent officers and workers. The society achieved success by leaps and
bounds, stood the brunt of changing trends, market recessions and upheavals, glut in the market and
even national calamities in the marketing field for more than two and half decades. Confidence has
gained among the growers for areca cultivation as an economically viable and commercial
proposition.
a. Arecanut Marketing
CAMPCO entered the Arecanut market in November 1973 and within a short period of its
entry into the Market, the Cooperative was able to bring the market to the pre-fall level and by
its judicious and effective procurement and sales policy, and efficient business administration,
CAMPCO has been able to assure the Growers of an economical price for their produce.
Thus, by the operations of CAMPCO, the Growers are now getting a very remunerative price for
their produce, and CAMPCO has been able to stabilize and maintain the Arecanut market at a
very economical level. CAMPCO started procurement initially in 5 Centers only and today, it
operates through 143 Procuring Centers throughout the States of Karnataka and Kerala. CAMPCO
operates through 10 Sales Depots in almost all the States in India at different places.
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Campco - Areca Busines
YEAR PURCHASE SALES
Qty. in MT Value ` in Lakhs Qty. in MT Value ` in Lakhs
2006-07 38765.60 39820.44 35021.0 37394.99
2007-08 39175.00 34589.29 42483.2 41063.38
2008-09 50248.00 42634.52 50402.0 46479.31
2009-10 53937.60 49766.67 50313.6 48702.30
2010-11 52622.30 54820.49 49567.4 53139.15
b. Cocoa
CAMPCO encouraged growers to take-up Cocoa cultivation as an inter crop in the latter half of the
70's as a supplemental crop. This grew up to become a large scale operation with good results. A
sudden withdrawal by the buyers of Cocoa from the procurement operations due to crash in the
international market came as a shock to cultivators. Karnataka and Kerala governments enthused at
this stage the CAMPCO to enter on the scene to rescue the farmers from distress. CAMPCO
willingly took up the responsibility to enter the cocoa market and performed a saviour’s role. As a
strategy for survival in the International scene the CAMPCO played a major role in establishing a
name for Indian Cocoa, which hitherto had not been achieved. It procured Cocoa Pods from growers
and adopting scientific processing methods to market standards, released dry cocoa beans matching
in quality in the world market to that of Ghana, Brazil and other leading Cocoa cultivating nations.
Campco - Cocoa Procurement
Qty. in MT Value ` in lakh
Particulars 2008-09 2009-10
Qty. Value Qty. Value
a) Wet Beans 888.95 914.57 3709 1260.1
b) Dry Beans 2449.24 2599.72 1021 1458.82
Total 3338.19 3514.29 4730 2718.92
c. Processing
With a view to creating a permanent demand and a steady market for the beans, Campco established
a Chocolate Manufacturing factory at Kemminje village in Puttur Taluk in Dakshina Kannada
District adopting foreign technical collaboration in chocolate making. The factory was set up in 1986
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at an initial investment of RS.116.7million and a licensing capacity to produce 8800 metric tons
annually. The factory also entered into a technical cooperation venture with NESTLE (India) Ltd,for
diversifying product brands. It has been producing a variety of products - semi finished items like
Cocoa Moss, Cocoa Butter and Cocoa Powder and finished products in moulded line, count line,
Chocolate drink etc. .CAMPCO chocolate has gained extensive market popularity in India.
After entering into the Cocoa market CAMPCO was able to export Cocoa Beans worth Rs. 40
million to European countries in the initial phase of operations. India was not known as a Cocoa
producer in the international Trading Community, since yearly production was hardly 5 to 6
thousand tons which is not even 0.3% of the total world consumption.
CAMPCO - PERFORMANCE OF CHOCOLATE UNIT
YEAR FINISHED SEMI-FINISHED
QUANTITY VALUE QUANTITY VALUE
In MTS Rs. in lacs In MTS Rs. in lacs
2006-07 1833.96 1917.9 2161.87 2751.39
2007-08 2865.93 3152.8 3652.55 4719.92
2008-09 3123.49 3638.27 4129.99 5839.42
2009-10 2892.12 3634.04 3555.77 5875.8
2010-11 3444.51 4972.31 3907.99 8118.45
8. Other Diversified Activities
a. Wind Mill
Continued use of fossil fuel for meeting the energy needs would add to emission of Green House
Gases resulting in global warming and climate change. As a small step towards reducing this bad
effect CAMPCO has installed a wind mill at a cost of Rs.656.88 lakhs at Hoovinahadagali Taluk in
Bellary District which will produce about 30 lakh units of Electricity which is a pollution free green
energy. The electricity is being used at the Chocolate Factory which will considerably reduce the
energy costs.
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During 2011-12 also Campco has installed 2 more Wind Turbine Generators of total capacity of 1.7
MW at a cost of Rs.1036 Lakhs at Chikkodi Village of Belgaum District. With these installations the
Factory's 70% power requirement will be met by Green energy.
b. Rubber Procurement
As a part of diversification of its activities, Campco has commenced Rubber procurement by
identifying potential areas. Additional collection centres will be opened in a phased manner.
Details of Rubber procurement as on 31/12/2011
Opening Stock Qty. in Qtls. Value Rs. in Lakhs
Opening Bal 981 216.34
Purchases 4840 996.90
Sales 5067 1068.60
Closing Stock 745 138.64
c. Consumer Packaging Unit
Reaching the Consumer direct has been one of the ambitions of CAMPCO for long. The Small
Consumer Packaging Unit has been commissioned on 11/7/1997 and ‘Mangala Supari’ has been
launched’. A research study conducted to explore the market feasibility has painted a bright
picture for the roasted arecanut. Since this product could not capture market upto CAMPCO’s
expectation, it has started manufacturing Kaju Supari - a mixture of Cashew and Supari on a trial
basis expected to be a grand success in the market.
d. Mobile Procurement Unit
Service at the door-steps of the Farmer has always been Campco’s goal. It has started a mobile
areca procurement unit at Theerthahalli to concentrate in the interior areas where there is no
adequate transportation facility. The mobile van on a notified day will go to a notified place and
facilitate the Arecanut Grower to sell his produce.
e. Research & Development
A new Research and Development wing has been opened and the price behaviour analysis is being
taken up as the first step. On 20/5/1998 a Research and Development Trust with Dr.D.Veerendra
Heggade, Dharmasthala as its President and CAMPCO President as the Managing Trustee has been
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established. This trust is actively involved with fixing a fair price and conducting a sensitivity
analysis.
CAMPCO’s Research and Development Wing, has a tie-up with SDM Ayurveda College, Udupi.
They have developed medicinal products on an experimental basis such as Pooga Syrup and Pooga
Trim, which will soon be marketed after obtaining proper license.
f. Online Trading
To be at par with the latest technology and Online Trading, CAMPCO has initiated and arranged to
list Arecanut also in the Commodities List at Multi Commodity Exchange of India Ltd., for futures
trading. It has also made a Franchisee Agreement with National Bulk Handling Corporation to
provide Warehousing and Quality Certificate for Arecanut.
9. Conclusion
In a highly competitive environment, cooperatives are ideal institutions to support the farmers
because of their spread and reach as also their close affinity with the farming community. They are
the only institutions to bank on for the Government for effective price support and market
intervention operations who have the infrastructure, experience and expertise to act as an effective
counter veiling force in the market. The need of the hour is providing them with a level playing
field and operational freedom. The CAMPCO with its vast experience and holding capacity is able to
bring market stability to a great extent. CAMPCO made its advent as a Saviour of Arecanut
farmers. With the dynamic leadership and management, coupled with unstinted support of the
CAMPCO’s Grower Members, the Institution could diversify its activities in different perspectives
and its time tested sustainablity has acquired a unique status in the country. It is hoped that the
collective endeavour of all the concerned would enable CAMPCO to emerge as a force to reckon to
greater heights with at National level.
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