March 19, 2012
Swiss premium chocolate maker Stella, a business as old as independent India, now buys all the cocoa produced by the Indian Organic Farmers Producer Company Limited (IOFPCL) of Wayanad in Kerala. The company has had an exemplary relationship with the cocoa farmers of south India. The company stuck with these farmers even after the produce repeatedly failed to meet the high quality standards set by the firm. They conducted training for the farmers here and they invited them for training to Switzerland. All the commitment and dedication, so rare in today's business world, is finally paying off. And following some coverage in the Business Standard and a few other publications, awareness is spreading.
I got the opportunity today to speak to Chackochan, the chairman of IOFPCL. He is one of those few good men who make this land wonderful despite all the corrupt clutter that characterises it. He was born in Wayanad into a family that had migrated from Kottayam in 1948. After receiving his degree in Physics, Chemistry and Mathematics from University of Mysore in the late 80s, he took over the family farm.
In 1989, he set up a non-profit consortium of medicinal plants farmers because he saw that medicinal plants that grew wild aplenty in Wayanad in his childhood were fast disappearing and the medicinal farms that were operating in the area followed a thoroughly unsustainable model.
"People said I was mad to try organic farming at that time," he recalled, "but now, 20 years later, they insist on buying from us because they realize our plants make effective medicine. Organic farming is expensive but you are never going to see any effect from medicines that hit the market with a heft marketing budget!" His work with organic farm drew the attention of M.S. Swaminathan Foundation. After a brief stint with the foundation when he helped other farming consortiums, he returned to full time farming. This time cocoa was his choice crop.
Indian cocoa didnot have a reputation in the international market. He was determined to change it. But it wasn't going to be a chocolaty journey! From 2004 to 2008, the IOFPCL racked up losses of 25 lakhs. State Bank of India gave a loan to save the company. Chackochan pledged his home and property to get that loan. "I was fully committed to the project. I knew we could create top quality crop. It was only a matter of time and effort. So I didn't mind standing security for that loan."
That was when Swiss company Stella took an interest in their crops. But for three seasons, despite repeated training, the Indian produce still contained a lot more undesirable moisture content. A small team of farmers were invited to Switzerland for training. "Stella's corporate values matched ours perfectly. And their values were not just on paper or for sloganeering. They were committed to the welfare of their farmers as well as their end users."
I asked him what else was memorable about his first Europe trip. He had no hesitation in admitting that he had prejudices. "I had thought Europeans were arrogant. I was so wrong. The CEO of that global giant received us himself at the airport. He gave us a personal tour of the factory. Imagine that! We were just simple farmers. Which company in India will treat you like that. The CEO gave a dinner in our honor at a hotel in an island. Next time, the other managers told us that they had never been to that hotel because it was not affordable. We were blown away. I think in India our "Athithi devo bhava" is mostly on paper!"
In 2009, finally, the produce from Kerala met Stella's standards and there has been no looking back since then. Now IOFPCL ships coffee to Finland and Germany and coconut oil and ginger to Canada. A first consignment of high grade organic pepper is getting ready for Canada in April first week. The packaging is also now done in Kerala itself.
But Chacko Sir worries that "organic" is rapidly being reduced to just a label. As expected, it is easy to get anything certified as organic from India as long as you know the right people and have the right kind of money. Plenty of such produce is going abroad. "The tragedy is that even buyers are playing along with sheer short term profit in mind. Such farming is absolutely unsustainable!" he laments sincerely.
His wife and two girls who are in college help him in all the farm activities. "My day begins at 5am. I am already at work by 7. Work continues till 6-7pm. Later in the night, I get busy with the good old medicinal farm activities. This work keeps me engaged and relaxed. I hardly know any sports nor have time for arts. I must have seen around 15 movies in my whole life. And who wants to waste time on TV that shows you multiple versions of apparently the same news!"
I told him that it was the Business Standard article that caught my attention. Have there been other media interest? "Yes, a French TV channel was here. Articles came in CityStyle that publishes from Delhi and another Kannada magazine." Has there been any interest from business schools, Indian or abroad, about such an outstanding collaborative effort and exemplary business model? "No!"
Somewhere during the half an hour conversation, when his calm, patient voice had me reduced to an eager student, Chacko Sir said, "Honest, genuine effort will never fail. But it takes time. We have to be patient, that's all!" I wonder if the world madly chasing the quickest buck and the latest fad will hear his message!
Stella launched its extra dark chocolate, Noir India Origines Intenses, in a campaign called "Incredible India". Chackochan is truly an incredible Indian!
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