Soyabean Cooperatuve
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Soyabean Cooperative Amit Goel (29007) Anand Prakash (29008) Md. Irfan Basha (29021) NehaShankar (29022) Ravi Dhanuka (29025) Debashish Maitra (F071)
Soyabean cultivation Ø Climate: warm & moist climate Ø Soil: Well drained and fertile sandy loam soil, with a pH between 6.0-7.5, Ø Temperature: mean temperatures of 20 °C to 30 °C. Ø Irrigation: generally does not require any irrigation during kharif season. Ø Planting: May- September Ø Rainfall: 60-65 cm of annual rainfall Ø seed rate of 65 to 75 kg / ha is
GLOBAL SOYABEAN CROP CALENDER
Major oilseeds
Products of soyabean Ø Soyaoil: used mostly for production of vegetable oil & wide variety of non-food products like soap etc. Ø Soyaflour: used to increase the shelf-life of many products and improve the colour Ø Soyaprotein: used in various cheese & other milk and meat substitute products Ø Soyameal: About 98 percent of soybean meal is used as a feed ingredient in mixed rations for poultry, hogs, and beef and dairy cattle. The remainder is used for human food or industrial products.
Factors influencing soyabean market • Weather at all the producing centres, domestic and international. The pod bearing period, being the most crucial. • Area planted, determined by the price of soybean against that of competitive crops, viz., maize, jowar, bajra. • International price movement, the futures market at CBOT being the major international reference market. • Pests and diseases. • Supply-demand and price scenario of
Pricing of Soybean
Deviation of price at spot market
Indian scenario of soyabean
Market size in India: Rs.5000 cr. Annual production: 6-7million tons 6-7 lakh tons in domestic consumption Import soyabean oil but exports soyabean meal • Refined Soya oil is fully consumed domestically and exports are not permitted in bulk, but only in consumer packs • India has price advantage in soya meal • Only 22-25% arrives at mandies • • • •
Share of states in Soyabean
Profile of Village Bheempur
• Total Cultivable area-1600 acres • Percentage of land under Soybean60% • Average Land holding-4 acres • Average yield-5 quintal/acre
Why Bheempur? • Traded volume through AMC is 0.071% • Local traders are the major players • Role of APMC : very limited in soya bean, majorly in cotton • No big or institutional players • Majority small and marginal farmers with a single crop – Inability of the farmer to hold the produce – Member centrality
• Lack of marketing infrastructure – storage space and information
Participants in trade of soyabean
Cost Of Production=977 Realized value=1517
Farmer
Mandal Trader Profit Margin 9.35% Commission Agent
Commission of Rs 3 per quintal
Commission of Rs 3 per quintal
Terms of exchange between farmers and traders
Terms of exchange between solvent plant and trader
Objectives of the Cooperative
• Social Objectives-Improve the socioeconomic status of the farmers • Financial Objectives- Credit linkages with Bank • Marketing Objective- Linkages with country wide market to give farmers the better returns • Technical Objectives- Linkages with agricultural specialists. • Educational Objective-Intense
Cooperative’s Function • Pooling • Provide storage facilities (losses during storage at farm level estimated to be about 0.5%) • Pledge finance • Knowledge transfer to minimize harvest and post harvest losses • Backward linkages • Thrift and Savings
Decisions • • •
Decision regarding the terms of exchange Decision regarding the supply to the Solvent Plants Point of sale decision
Transpor t to Coop
farme r
Process Flow Chart
Measurement of quantity & Moisture content
Secy/President/Accou ntant Entry into Co-op’s record
Secy/Accounta nt Storag e
Secy/President/Mem ber
Transporta tion to solvent plant
Project Manager, Members, CEO
Anama t
Sale
Exchange Between Farmers and cooperatives (refer excel
Collect future price outlook from different market participants Collect cost data of village Co-op
POINT OF SALE DECISION
Go ahead ?
Consult the members
Watch the Price
Is P ≥Pex p
Yes No
Estimation of an expected price, period of sale
No
Sale to Solvent plant
Yes
Traders & Credit Linkages How to break it? • Input suppliers • Long term & short term traders • Advances for sowing, weeding, harvesting • Thrift and credit • 50-50: Cooperative and trader
It still remains a challenge and our effectiveness is going to break it
Co-operative v/s Traders and Commission Agents • Institutional benefits- parking of produce, loan at cheaper rate, savings mobilisation • Operational Benefits-Economies of scale (total expenses incurred per quintal falls) • NVA to farmers, mitigating post harvest losses, possibility of getting out of debt-trap
THANKYOU
Cost of cultivation
Soyabean cultivation Ø Climate: warm & moist climate Ø Soil: Well drained and fertile sandy loam soil, with a pH between 6.0-7.5, Ø Temperature: mean temperatures of 20 °C to 30 °C. Ø Irrigation: generally does not require any irrigation during kharif season. Ø Planting: May- September Ø Rainfall: 60-65 cm of annual rainfall Ø seed rate of 65 to 75 kg / ha is
GLOBAL SOYABEAN CROP CALENDER
Major oilseeds
Products of soyabean Ø Soyaoil: used mostly for production of vegetable oil & wide variety of non-food products like soap etc. Ø Soyaflour: used to increase the shelf-life of many products and improve the colour Ø Soyaprotein: used in various cheese & other milk and meat substitute products Ø Soyameal: About 98 percent of soybean meal is used as a feed ingredient in mixed rations for poultry, hogs, and beef and dairy cattle. The remainder is used for human food or industrial products.
Factors influencing soyabean market • Weather at all the producing centres, domestic and international. The pod bearing period, being the most crucial. • Area planted, determined by the price of soybean against that of competitive crops, viz., maize, jowar, bajra. • International price movement, the futures market at CBOT being the major international reference market. • Pests and diseases. • Supply-demand and price scenario of
Pricing of Soybean
Deviation of price at spot market
Indian scenario of soyabean
Market size in India: Rs.5000 cr. Annual production: 6-7million tons 6-7 lakh tons in domestic consumption Import soyabean oil but exports soyabean meal • Refined Soya oil is fully consumed domestically and exports are not permitted in bulk, but only in consumer packs • India has price advantage in soya meal • Only 22-25% arrives at mandies • • • •
Share of states in Soyabean
Profile of Village Bheempur
• Total Cultivable area-1600 acres • Percentage of land under Soybean60% • Average Land holding-4 acres • Average yield-5 quintal/acre
Why Bheempur? • Traded volume through AMC is 0.071% • Local traders are the major players • Role of APMC : very limited in soya bean, majorly in cotton • No big or institutional players • Majority small and marginal farmers with a single crop – Inability of the farmer to hold the produce – Member centrality
• Lack of marketing infrastructure – storage space and information
Participants in trade of soyabean
Cost Of Production=977 Realized value=1517
Farmer
Mandal Trader Profit Margin 9.35% Commission Agent
Commission of Rs 3 per quintal
Commission of Rs 3 per quintal
Terms of exchange between farmers and traders
Terms of exchange between solvent plant and trader
Objectives of the Cooperative
• Social Objectives-Improve the socioeconomic status of the farmers • Financial Objectives- Credit linkages with Bank • Marketing Objective- Linkages with country wide market to give farmers the better returns • Technical Objectives- Linkages with agricultural specialists. • Educational Objective-Intense
Cooperative’s Function • Pooling • Provide storage facilities (losses during storage at farm level estimated to be about 0.5%) • Pledge finance • Knowledge transfer to minimize harvest and post harvest losses • Backward linkages • Thrift and Savings
Decisions • • •
Decision regarding the terms of exchange Decision regarding the supply to the Solvent Plants Point of sale decision
Transpor t to Coop
farme r
Process Flow Chart
Measurement of quantity & Moisture content
Secy/President/Accou ntant Entry into Co-op’s record
Secy/Accounta nt Storag e
Secy/President/Mem ber
Transporta tion to solvent plant
Project Manager, Members, CEO
Anama t
Sale
Exchange Between Farmers and cooperatives (refer excel
Collect future price outlook from different market participants Collect cost data of village Co-op
POINT OF SALE DECISION
Go ahead ?
Consult the members
Watch the Price
Is P ≥Pex p
Yes No
Estimation of an expected price, period of sale
No
Sale to Solvent plant
Yes
Traders & Credit Linkages How to break it? • Input suppliers • Long term & short term traders • Advances for sowing, weeding, harvesting • Thrift and credit • 50-50: Cooperative and trader
It still remains a challenge and our effectiveness is going to break it
Co-operative v/s Traders and Commission Agents • Institutional benefits- parking of produce, loan at cheaper rate, savings mobilisation • Operational Benefits-Economies of scale (total expenses incurred per quintal falls) • NVA to farmers, mitigating post harvest losses, possibility of getting out of debt-trap
THANKYOU
Cost of cultivation
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