The case study discusses the `Alu' potato chips venture in Thailand undertaken by the San Sai Land Settlement Cooperative (SSLSC). A brief history of the evolution of the cooperative sector in Thailand is given, along with information about changes in the business environment that led to the emergence of new generation cooperatives. The case describes in detail, the issue of potato farming in Thailand and SSLSC's role in the same. It goes on to discuss the reasons behind the start of the `Alu' venture. The case also covers marketing strategies adopted for the chips venture and the various developmental projects undertaken by the cooperative.
In 1935, the land settlement program was started in Thailand under royal patronage with 8,127 rai1 of land. In 1937, the San Sai Land Settlement Cooperative (SSLSC) was set up. Four other such primary cooperatives were registered in 1938 with 93 families as members and 1,341 rai of land was allotted to them. In 1951, there were a total of 21 land settlement cooperatives with 521 members and 7,913 rai of land. On September 28, 1973, these cooperatives were merged into one (Refer Exhibits I and II for notes on the evolution and structure of cooperatives in Thailand and new-age cooperatives).
On June 24, 1974, the cooperative became a limited cooperative with 3,165.2 rai of land area and 521 members2. By 2000, Thailand had 100 land settlement cooperatives with a membership of 1,47,382,3370 agricultural cooperatives with 47,89,493 members, and 76 fisheries cooperatives with 13,859 members.3
The SSLSC was the first cooperative of its kind in Thailand. Its purpose was to offer landless farmers a possibility to acquire land and to clear new farmland in forest areas. Selected farmers were provided with 15-30 rai of land and were extended credit to cover the cost of land clearing and building of houses. Once the farmers had repaid all loans and the land was in full utilization, the farmers could receive full property rights of the land. The settlers in San Sai were fortunate to have access to irrigation, as a new irrigation dam had been constructed in the area only a few years before. Hence, in contrast to many other settlement projects in Thailand, the allocated land in San Sai was fully utilized. |
