A farmer’s cooperative in Kerala to start a cafe chain

India: A farmers operated cooperative in Kottayam is planning to open a chain of coffee shops which will sell the organic coffee. They are cultivating the organic coffee on their own. The name of the cooperative society is Manarcadu Social Service Society (Mass) and they are planning to start the chain by the name of Cafe de Monde. The first shop will be opened in Kochi in few months and then they will spread the chain to other towns of the state. The idea is to sell the beans only from virgin plantations.

In future they are also planning to sell organic fruits and vegetables through these shops as there is limited scope for exporting the same. The Mass was incorporated in year 2001 and has 5000 farmers spread in 18 villages and cultivating in 3100 hectares spread. The society has another company by the name of Plantrich Agritech Pvt. Ltd which exports coffee, spices and cocoa to Europe. The society produces of 2600 tonnes of coffee, 4000 tonnes of spices and 1870 tonnes of fruits annually. There last year turnover through exports was of INR30 crore and the sale of organic products is increasing at a rate of 20% per year.

According to TechSci Research, the awareness about organic products in India is increasing day by day as people are more focused in buying the organic foods, but still there is a huge potential to grow as Indian land has the capabilities to grow every type of organic foods. Organic farming on the other hand helps in protecting the land and the water resources as well. Also, with growing young population and increasing urbanization coffee shops/cafes culture is expected to grow on a significant rate.

According to a recent report published by TechSci Research, “India Coffee Shops / Cafés Market Forecast, Consumer Survey and Opportunities, 2021”, market for Coffee Shops / Cafés in India is projected to grow at a CAGR of over 11% during 2016 - 2021. In addition to India urban centres like New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata, entry of new chains into tier II and tier III cities is anticipated to emerge as a major factor driving growth in coffee shops / cafes market in the country over next five years. India coffee shops / cafes market is highly fragmented, with Café Coffee Day, Costa and Starbucks being few of the leading chained coffee shops operating in the country.