A Study on Dhruva Cooperative Society

Group: 10

Name Roll No.

Krishna Khuntia UR21026

Narmada Rani Sahu UR21029

Rakesh Acharya UR21040

Sourav Kumar Parhi UR21052

Class: MBA (RM)

Assignment Type: Essay

1. Introduction:

Agriculture and its allied practices form the pioneers in the Indian economy. From small-scale
collectives to well-established companies, it has various organizations that add to the growth of
this sector. Similarly, the Dhruva Cooperative Society was formed in 2019 in the Koraput district
of Odisha to ensure a sustainable source of income. It was set up by a group of eleven small and
marginal farmers who adopted the collective approach and consolidated their respective lands to
start apiculture and agriculture. They started it on an experimental basis for the first quarter, and
the results were phenomenal. They had observed a surge in productivity which they connected to
the ability of the bees to act as excellent pollinators. Therefore, they adopted the model to
enhance their agriculture and develop apiculture as an alternative source of income. They
collaborated with a carpenter who designed the bee boxes for the farmers, and the entire model
was started full-fledged.

2. Working of the Cooperative Society:

It was started with an initial investment of Rs. 2000, which was the cost of setting up the bee
boxes in the controlled area of the farm. Dhruva deals with indigenous bees like Apis Cerena
Indica and Triagona majorly as they are excellent pollinators among bees. Indigenous bees

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pollinate crops in diverse agricultural systems in tribal communities in an ecologically friendly
way since they are readily accessible near where the crops are grown. Due to the bee's local
availability and adaptability, input costs are minimal. Additional revenue is generated in the
second year of training by selling honey and beeswax. Because the bees are highly acclimated to
the local environment, they do not need to migrate to find food.

2.1 Process:
Initially, training sessions are organized village-wise to instill proper awareness among people
about why beekeeping is essential and profitable at the same time. At the village level, Dhruva
teaches beekeeping, followed by hands-on assistance. Within the community, a group of "Master
Trainers" is being formed for training purposes. Honey and wax aggregation, the construction of
bee boxes with the assistance of carpenters, is done. An artificial shelter is created to rear bees
with distributed compartments. Then farmers install these bee boxes in the middle of their
farmlands. These are checked from time to time for cleaning purposes. Post 2-3 months box is
opened, and all honey gets collected carefully and segregated from bees waxes. Appropriate
training sessions are imparted to the farmers at regular intervals.

2.2 Management:

2.2.1 Organizational Culture:

Each company has a distinct cultural character. Our goal is to know the organizational culture in
cooperatives based on the premise that corporate culture is vital to an organization’s performance
and that social economy organizations are concerned with improving managerial practices and
results. Norms are unwritten rules that those in charge of the organization follow. As a result,
there are uncodified assumptions concerning organizational behaviors. A clan culture is a
business environment that is family-like or tribe-like, emphasizing consensus and similarity of
aims and values. Clan cultures are the least competitive and collaborative of the significant
corporate culture patterns. Cooperatives are founded on self-help, self-reliance, democracy,
equality, equity, and solidarity. As did their founders, cooperative members believe in the ethical
qualities of honesty, openness, social responsibility, and care for others. Forming a joint allows
local producers to band together to decide on price, produce, and markets. The training enables
the team to comprehend the rules entirely.

2.2.2 Organizational Structure:

An organizational structure is a system that provides a foundation for specific tasks directed
toward fulfilling an organization’s goals. Rules, roles, and obligations are examples of such
activities. The organizational structure also governs how information moves within the
cooperative. This Cooperative follows a mechanical model. The process by which actions,

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including planning and decision-making within an organization, are concentrated on a single
authority is called centralization.

3. Marketing Model

3.1 Product:
Honey certified as organic has been generated from plants grown following the principles of
organic agriculture. This ensures that the plants have not been subjected to any chemicals during
the growing process. When you buy organic honey, you eliminate the risk of coming into touch
with any pesticides that may have been sprayed on or near the plants that were pollinated by
honeybees. This is because organic honey is produced in a way that prevents the use of
pesticides. It is also suitable for health because it’s good south at areas which are helpful for the
human body. It also solves the issues related to digestion and the prevention of sore throat.
Flavored honey is a kind of natural honey with natural spices and herbs.

3.2 Price:
Honey sold in 200 grams will set you back Rs 360, honey sold in quantities of 500 grams will set
you back Rs 670, and love sold in quantities of 1 kilogram will set you back Rs 1250. Honey
purchases more significant than 10 liters will be eligible for a discount equal to ten percent of the
total price of the transaction.

3.3 Place:
The place can be defined as a platform producer, and consumers get an opportunity to buy and
sell the products. At first, the honey will be sold in the marketplace, where it will be sold in
medical and grocery shops, and then the market space will be targeted, which includes online
marketing.

3.4 Promotion:
The honey will be sold in bottles of sizes consisting of 200 grams, 500 grams, and one kilogram.
Several promotional tools are utilized to reach the target audience and achieve the organization’s
ultimate objectives. Those are:

3.4.1 Promotional events:

In advertising the product, we can go for promotional events by following conventional media
like outdoor branding(wall paintings and hoardings) and nonconventional media channels like
AV vans, through which we can promote the product in weekly Haat Melas and other crowded
areas.

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3.4.2 Direct Marketing:
In direct marketing, we have to directly reach the customer, which involves cold calling,
messaging, and making the customer aware of the product. This includes detailed information
about the product, the benefits of using the product, the price of the products in different
packages, and other discount offers(*if there are any). In our case, we can take the contact
numbers of the customers staying in different apartments in cities like Cuttack and Bhubaneswar,
where we can access many customers in a single place. Those will be pretty beneficial for the
producers.

3.4.3 Digital marketing:

As we all know, the world is changing rapidly with matching steps with the digital era; digital
marketing plays an essential role in promoting products. Now we have different social media
platforms like Facebook, Instagram, Share chat, etc., which are popular mediums. Especially
when we want our products to reach a larger audience, social media is the best medium. For
digital marketing, an official page can be created on Facebook and Instagram, where the product
details with prices and discount offers will be shared. The purchase link will be there so a
customer can purchase the product.

4. Financial Model
4.1 Investments:
Since this is a newly established cooperative society, it is difficult to pay dividends to investors.
Therefore, it seemed to raise funds from donor agencies and hand-holding from local NGOs. The
donor agencies have provided the funds and the essential equipment for kick-starting the
operations. Also, the NGO had helped in the training and skill development of the members
through various farm visits involved in similar types of projects.

4.2 Income:
The society aims at achieving sustainable income for all the members annually. The process of
apiculture and gathering the honey takes about three months. Therefore, there must be an
alternative income source for the farmers. As each member in a cooperative society is an equal
stakeholder, the earnings received from apiculture are divided equally among the members. In
contrast, the revenues from the farming activities are divided proportionately, based on each
member's output.
Of the 12 acres of cultivable land, nearly 75% is involved in apiculture, and the rest 25% is used
for agricultural purposes. Approximately 22 kgs of honey are produced in one quarter, giving
them an annual income of Rs. 1,10,000 for 88 kgs. Each farmer earns a daily Rs. 150 to Rs. 200
from the cultivated vegetables. This ensures a sustainable income source for the farmers all year-
round.

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Rs. 150 * 11 farmers= Rs. 1650 per day (agricultural income)
Rs. 1650* 30 days= Rs. 49,500 per month (agricultural income)
As a collective, they had an assured income of approximately Rs. 7 lakhs annually.
Each farmer deposits 10% of their daily income in the reserve of the cooperative society, and
near about 30% of the revenue from apiculture goes to the account. The rest is divided equally
among the members of the cooperative. The accumulated reserve can be used for further
expansion of the operations or reinvested in the functions. This was also used to provide short-
term loans to the members at considerably low-interest rates.

5. Social Impact
As beekeeping is a sustainable practice, it has a significant social impact. It comes with varied
advantages, which include:
● Firstly, an increase in agriculture productivity is the main reason as Bee being excellent
pollinators helps to increase agricultural production significantly.
● Other than agriculture, farmers can enjoy the side hustle of beekeeping. Selling off honey
and bee waxes commercials can add up to fortunes. It adds up to an extra livelihood
option.
● There’s been a drastic reduction in the population of honeybees over the last few years.
This is because of over-exploitation in the name of honey hunting practices. Rearing
honey bees by creating a shelter space and getting numerous returns from them adds to a
symbiotic relationship.
● This process being very facile, women's involvement can be highly measured, promoting
women's empowerment.
● Additionally, this will improve the overall biodiversity as this cooperative will strive to
cater to all the stakeholders of society having sustainable development.

6. Conclusion

As the global population grows astounding, so makes the demand for natural resources.
Consumption of food is on the rise. In such a situation, productivity must be boosted. Due to a
lack of other resources, sustainable agriculture is necessary. Due to their role as one of the
world's most important pollinators, bees have become almost indispensable. Conserving them
would undoubtedly broaden the scope of agriculture and provide farmers with good returns. In
addition, bees produce honey and may be a source of additional income. In addition, it enhances
biodiversity and provides value to nature. Beekeeping becomes more critical for human survival
if we are to achieve long-term, sustainable growth, and development.

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7. References

● Davis, J. (2020, April 23). How long does it take for a new beehive to produce honey?
Bee Keeper Facts - Beekeeping For Beginners And Hobbyists. Retrieved July 10, 2022,
from https://beekeeperfacts.com/how-long-does-it-take-for-a-new-beehive-to-produce-
honey/
● About Us. UTMT Society. (n.d.). Retrieved July 10, 2022, from
https://www.utmtsociety.org/

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