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The Campco Ltd., as a "Co-operative" is a success story of the people, by the people for the people and successful implementation of the vision and values of all
the great founders of this country, like Mahatma Gandhi.

The early 1970's showed a glut in the market and thereby the price of arecanut came down sharply and consequently the growers were put into misery and
hardship. The solution for this crisis was found in the birth of 'Campco' on 11th July 1973 and established itself as a multi state co-operative - a joint venture of
the states of Karnataka and Kerala.

CAMPCO a brand name that people have come to trust through their own experience.

ARECANUT is an important commercial crop in India and finds a place in all

religious, social and cultural functions in India. Cultivation of Arecanut is mostly
confined to States of Karnataka, Kerala and Assam,but the consumption is spread
all over the country. India is considered as the largest Arecanut producing country
in the world.

The total acreage under cultivation is 264000 hectares and the annual production
estimated at 313000 metric tones,with Karnataka and Kerala accounting for nearly
72 percent of total production. Over six million people are engaged in arecanut
cultivation, processing and trade.More than 85 percent of the area under cultivation
is made up of small and marginal holdings.

A sudden marketing crisis in the year 1970-71, when prices registered a marked
fall which caused considerable concern to the growers, was the genesis for the
setting up of this Co-operative Venture (what popularly is called The CAMPCO).
Growers had been thrown into panic with the prices coming down by half of what
was prevailing till 1970-71 season.

Various measures were thought of for organized marketing management and

leaders among growers sat together to find a way out. State Government of
Karnataka, on the advice of an Expert Committee, recommended organizing a
Central Agency in the Public or Co-operative sector. With the blessings and active
support extended by the State Governments of Karnataka and Kerala, the CAMPCO
was registered on 11th July 1973 under sec.7 of the Karnataka Co-operative
Societies Act read with sec.4(2)of the Multi State Co-operative Societies Act 1984.
Through perseverant efforts of far sighted , dedicated and resourceful leaders,with
the cooperation and assistance of equally dedicated growers under the guidance of
the State Governments of Karnataka and Kerala, this institution took giant strides
forward and has turned into a tower of strength to the areca growing community in
the country.

The CAMPCO has been functioning effectively with the main objectives of

‡ Procuring Arecanut and Cocoa grown by member cultivators and if necessary,

from other growers on an agency basis or on outright purchase basis
‡ Sale of Arecanut and Cocoa and their products to the best advantage of members
and also to advance loans to members on the pledge of goods and to do all other
things necessary to carry out the objective.
‡ To promote and develop Areca and Cocoa cultivation,marketing and processing.

The area of operation of this cooperative for procurement and processing of

Arecanut and Cocoa extends to the States of Karnataka and Kerala,but for the
marketing activity, the area has been extended to the whole country. Arecanut
purchase operations were extended to Assam,Andaman and Goa but in recent years
purchase operations in Assam had to be closed due to disturbances.

Starting with its Head office at Mangalore in coastal Karnataka, the CAMPCO
began with a handful of procurement centers in Karnataka and Kerala. The Campco
adopted a safe policy for purchasing and marketing the commodity and maintaining
standards in quality assiduously with the dedicated cooperation of a network of
diligent officers and workers. The society achieved success by leaps and
bounds,stood the brunt of changing trends,market recessions and upheavals,glut in
the market and even national calamities in the marketing field for more than two
and half decades. Confidence has gained among the growers for areca cultivation as
an economically viable and comfortable proposition.

The co-operative encouraged growers to take-up Cocoa cultivation as an inter crop

in the latter half of the 70's as a supplemental crop. This grew up to become a large
scale operation with good results. A sudden withdrawal by the buyers of Cocoa
from the procurement operations due to crash in the international market came as a
shock to cultivators. Karnataka and Kerala governments enthused at this stage the
CAMPCO to enter on the scene to rescue the farmers from distress.CAMPCO
willingly took up the responsibility to enter the cocoa market and performed a
savior's role.As a strategy for survival in the International scene the CAMPCO
played a major role in establishing a name for Indian Cocoa, which hitherto had not
been achieved. It procured Cocoa Pods from growers and adopting scientific
processing methods to market standards,released dry cocoa beans matching in
quality in the world market to that of Ghana,Brazil and other leading Cocoa
cultivating nations. With a view to creating a permanent demand and a steady
market for the beans,Campco established a Chocolate Manufacturing factory at
Kemminje village in Puttur Taluk in Dakshina Kannada District adopting foreign
technical collaboration in chocolate making.The factory was set up in 1986 at an
initial investment of RS.116.7million and a licensing capacity to produce 8800
metric tones.The factory also entered into technical cooperation venture with
NESTLE (India) Ltd,for diversifying product brands.It has been producing a variety
of products - semi finished items like Cocoa Mass, Cocoa Butter and Cocoa Powder
and finished products in moulded line, count line, Chocolate drink etc. .CAMPCO
chocolate has gained extensive market popularity in India.

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The Management of CAMPCO vests in the Board of Directors consisting of 17

Directors. These Directors are elected or nominated as per the provisions of Bye
Laws.

The day to day activities are conducted by the Managing Director. The Executive
Committee and the Business Committee devote more time to scrutinise and decide
about the financial and business transactions of the Institution.



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Varieties Of Cocoa Beans

Origins Of Cocoa And Its Spread Around The World

The genus Theobroma originated millions of years ago in South America, to the east
of the Andes. Theobroma has been divided into twenty-two species of which T. cacao
is the most widely known. It is the Maya who have provided tangible evidence of
cacao as a domesticated crop. Archaeological evidence in Costa Rica indicates that
cacao was drunk by Maya traders as early as 400 BC. The Aztec culture, dominant in
Mesoamerica from the fourteenth century to the Conquest, placed much emphasis on
the sanctity of cacao. The first outsider to drink chocolate was Christopher Columbus,
who reached Nicaragua in 1502 searching for a sea route to the spices of the East. But
it was Hernan Cortés, leader of an expedition in 1519 to the Aztec empire, who
returned to Spain in 1528 bearing the Aztec recipe for xocoatl (chocolate drink) with
him. The drink was initially received unenthusiastically and it was not until sugar was
added that it became a popular drink in the Spanish courts.

Cocoa tree varieties

`
 dominated the market until the middle of the eighteenth century but today
only a few, if any, pure Criollo trees remain.

   is a large group containing cultivated, semi-wild and wild populations of

which the Amelonado populations are the most extensively planted. Large areas of
Brazil and West Africa are planted with Amelonado.

Amelonado varieties include, Comum in Brazil, West African Amelonado in Africa,

Cacao Nacional in Ecuador and Matina or Ceylan in Costa Rica and Mexico. Recently
large plantations throughout the world used Upper Amazon hybrids.

The



 populations are considered to belong to the Forasteros although they
are descended from a cross between Criollo and Forastero. Trinitario planting started
in Trinidad and spread to Venezuela and then was planted in Ecuador, Cameroon,
Samoa, Sri Lanka, Java and Papua New Guinea.
Categories of Cocoa Beans
 The world cocoa market distinguishes between two broad categories of cocoa
beans: O
   O cocoa beans, andO O or O
O cocoa beans. As a
generalisation, fine or flavour cocoa beans are produced from Criollo or Trinitario
cocoa-tree varieties, while bulk cocoa beans come from Forastero trees. There are,
however, known exceptions to this generalisation. Nacional trees in Ecuador,
considered to be Forastero-type trees, produce fine or flavour cocoa. On the other
hand, Cameroon cocoa beans, produced by Trinitario-type trees and whose cocoa
powder has a distinct and sought-after red colour, are classified as bulk-cocoa beans.

The share of fine or flavour cocoa in the total world production of cocoa beans is just
under 5% per annum. Virtually all major activity over the past five decades has
involved bulk cocoa.

Harvesting & Post-harvest

Harvesting Cocoa

Forastero-type cocoa beans are used for making CAMPCO CHOCOLATE and
Harvesting of Cocoa involves removing ripe pods from the trees and opening them to
extract the wet beans. The pods are harvested manually by making a clean cut through
the stalk with a well sharpened blade. The pods are opened to remove the beans within
a week to 10 days after harvesting. In general the harvested pods are grouped together
and split either in or at the edge of the plantation. Sometimes the pods are transported
to a fermentary before splitting. After extraction from the pod the beans undergo
fermentation and drying process before being bagged for delivery.
Fermentation

Fermentation can be carried out in a variety of ways, but all methods depend on
removing the beans from the pods and piling them together or in a box to allow micro-
organisms to develop and initiate the fermentation of the pulp surrounding the beans.
The piles are covered by banana leaves. The fermentation process decides the quality
of raw cocoa. The fermentation process begins with the growth of micro-organisms.
The chemical reactions that take place during fermentation cause the chocolate
flavour and colour to develop. The length of fermentation varies depending on the
bean type and origin. Forastero beans require about 5 days and Criollo beans 2-3 days.
Drying

Cocoa beans are dried after fermentation in order to reduce the moisture content
from about 60% to about 7.5%. Drying must be carried out carefully to ensure that
off-flavors are not developed. Drying should take place slowly. If the beans are dried
too quickly some of the chemical reactions started in the fermentation process are not
allowed to complete their work and the beans are acidic with a bitter flavour.
However, if the drying is too slow moulds and off flavors can develop. Various
research studies indicate that bean temperatures during drying should not exceed
650C. There are two methods for drying beans - sun drying and artificial drying.

Processing Cocoa
Transforming Cocoa beans into Chocolate

   The cocoa beans are cleaned to remove all extraneous material.

   To bring out the chocolate flavour and colour the beans are roasted. The
temperature, time and degree of moisture involved in roasting depend on the type of
beans used and the sort of chocolate or product required from the process.

   A winnowing machine is used to remove the shells from the beans to leave
just the cocoa nibs.

   The cocoa nibs undergo alkalization, usually with potassium carbonate, to
develop the flavour and colour.

  The nibs are then milled to create cocoa liquor (cocoa particles suspended in
cocoa butter). The temperature and degree of milling varies according to the type of
nib used and the product required.

  Manufacturers generally use more than one type of bean in their products and
therefore the different beans have to be blended together to the required formula.

   The cocoa liquor is pressed to extract the cocoa butter leaving a solid mass
called cocoa press cake. The amount of butter extracted from the liquor is controlled
by the manufacturer to produce press cake with different proportions of fat.

  The processing now takes two different directions. The cocoa butter is used
in the manufacture of chocolate. The cocoa press cake is broken into small pieces to
form kibbled press cake which is then pulverized to form cocoa powder.

   Cocoa liquor is used to produce chocolate through the addition of cocoa
butter. Other ingredients such as sugar, milk, emulsifying agents and cocoa butter
equivalents are also added and mixed. The proportions of the different ingredients
depend on the type of chocolate being made.
  The mixture then undergoes a refining process by traveling through a series
of rollers until a smooth paste is formed. Refining improves the texture of the
chocolate and reduces the particle size of sugar and cocoa to around 30 microns.

  The next process, conching, further develops flavour and texture. Conching
is a kneading or smoothing process. The speed, duration and temperature of the
kneading affect the flavour.

   The mixture is then tempered or passed through a heating, cooling and
reheating process. This prevents discoloration and fat bloom in the product by
preventing certain crystalline formations of cocoa butter developing.

  The mixture is then put into moulds or used for enrobing fillings and cooled
in a cooling chamber.

  The chocolate is then packaged for distribution to retail outlets.

` `8


 Chocolate Manufacturing Unit is located at Kemminje Village near Puttur in

Dakshina Kannada District, Karnataka, India.

A youngster of 30 years old with vigour and valour, it had taken giant steps in its
toddling stage itself to fulfill the growers aspirations. undisputedly, Campco can claim
the credit of establishing the areca and cocoa market. The Campco was encouraging
the growers to grow cocoa as an intercrop to arecanut as cocoa has an international
market

The principle buyer of cocoa till 1980 suddenly stopped buying cocoa during the
peak cocoa season due to slump in international cocoa price. To safeguard the
interests of its growers Campco had to enter into Indian cocoa market also. Cocoa was
bought in the form of wet beans from the farmers. The Campco has been furnishing
the cocoa growers with cocoa saplings to the tune of 1,00,000 at free of cost to
promote the cultivation of cocoa. Adopting scientific methods of fermentation and
drying, campco could successfully export quality cocoa beans to european countries.
Perceiving the future necessity of cocoa products and market strategy for cocoa, with
the supporting nod from the central government and state governments of Karnataka
and Kerala, Campco had carved a niche by establishing a biggest chocolate factory in
South - East Asia, located in Puttur - a taluk headquarter located 50 km away from the
coastal city Mangalore.

Nurtured by Sri Varanashi Subraya Bhat, the founder president, the factory with all
imported machinery was completed in a record time of 4 years, with an additional
financial assistance from a consortium of Industrial Development Bank of India
[IDBI.], Industrial Credit Corporation of India [ICICI], and Industrial Finance
Corporation of India [IFCI], The factory was commissioned by Sri Gaini Zail Singh,
the then President of India on 1st September 1986. The Campco had a break through
within 4 years with an enthuastic support from the chocolate consumers and traders. It
netted a profit of Rs. 27.5 Lakh in the year 1990-91. Eminent presidents, Board of
Directors, Managing Directors, Secretaries have navigated and have been navigating
Campco's cruiser cleverly and concernfully. It has steered its way during last 30 years
in placid as well troubled waters with a pledge to make the farmer members reach
their destinations safely and satisfactorily. This is made possible also with the
unstinting support of diligent and devoted employees of the organisation.

Cocoa cultivation is of recent origin in India; being an inter crop it has a great
potential for growth in the vast plantations of areca and coconut in southern states of
Kerala, Karnataka, Tamilanadu and most recently in a few places of Andhra Pradesh.
Campco, through its undeterent efforts over the years has been able to install a sense
of confidence in the cocoa cultivators through its procurement policy that has ensured
reasonable prices to them. In purport of this, Campco has decided to establish cocoa
liquor, butter and powder processing facilities and a chocolate manufacturing plant as
an extension of its activities for achieving its overall corporate objective of
safeguarding the interests of cocoa growers with better economic returns.

With the machineries manufactured by 5 major companies of the cocoa processing

and chocolate manufacturing namely

‡ M/s. Carle & Montanari Spa, Italy,

‡ M/s. l - Aasted International APS, Denmark,
‡ M/s. Otto Hansel Gmbh, West Germany,
‡ M/s. Sollich Gmbh & Co. kg, West Germany,
‡ M/s. Sig Swiss Industrial co., Switzerland,

Campco has stepped into cocoa processing and chocolate manufacturing with a
licenced capacity of 8800 mt. though it is 8800mt, the installed capacity is around
13000 mt with a cocoa beans crushing capacity to the tune of 9000 mt.

The factory manufactures -

1. Cocoa Mass, Cocoa Butter and Cocoa Powder -Industrial Products for internal &
export market.
2. Moulded chocolates, Enrobed chocolates, Chocolate Eclairs, Sugar Coated
Chocolate buttons and instantised drinking chocolate - finished products for internal
market & having export potential.
 Keeping pace with the consumer needs of the new products, Campco has recently
exported instantised milk flavouring beverage products and Chocolate Eclairs to
Australia That are formulated at product development cell of chocolate factory export
of cocoa butter to European countries also takes the cue.


  
of the chocolate factory :

‡ The factory is the largest in south east asia.

‡ The factory is one of the most modern in the world. the factory is equipped with the
most modern machineries imported from five firms of four european countries.
‡ The factory is equipped with services installed by the best firms of india.
‡ The well-experienced architects and consultants designed the factory.
‡ The factory has been completed in a record time. the factory is situated in an
industrially backward rural area in the midst of cocoa cultivation area.
‡ The Campco ltd. earns foreign exchange.
‡ Being a co-operative venture, this factory provides an opportunity to further
strengthen the co-operative movement by bringing in the dispersed marginal and
small cocoa growers under one umbrella.
‡ Quality of product manufactured is of international standard.

The industrial development of the country over the past three decades has led to
socio economic betterment of the country indicated by two parameters, the income
changing pattern as well as growth of new urban agglomerates. The global
liberalisation, the green and white revolutions has resulted in the income generation
that has uplifted living standards of the ruralites. This venture is the symbol of a new
era of enterprise and business for the cocoa grower who once faced the prospect of
destruction and defeat. Inferring from changing consumption and income pattern,
campco has been endeavouring to bring cocoa, which was christened in 18th century
by linnaeus as "theobroma - food of the gods", within the reach of the common man.
Campco produces wide range of cocoa based products of consistant quality, colour
and flavour to satisfy the wide spectrum of customers all arround the globe. these
include cocoa mass or liquor, cocoa powder, cocoa butter and other value added cocoa
based products. the philosophy of the co-operative as reflected by our commitment to
quality is simple:
 FOOD SAFETY POLICY

` `p  is committed to,

1. Implementing a Food Safety Management System with an aim to produce and

supply safe quality Cocoa, Chocolate and Confectionery Products that meet
customers¶ satisfaction and expectations.

2. Comply with legal obligations and to protect the end users with consistent safe
products through the application of good manufacturing, hygiene practices, good
distribution practices and HACCP principles.

3. Ensure all employees involved in production receive appropriate and adequate

training in food safety and handling.

4. Ensuring that both internal and external communications regarding food safety
are fully addressed.

5. Meeting all the Food Safety Management objectives and continually improve
on processes and resources.

QUALITY CONTROL

1. Campco quality control department ensures the Production and Marketing of

high quality, superior value products that consistently meet our specifications and
comply with local regulatory requirements.

2. Campco assures the customers and consumers by considering their

expectations towards quality and price factors and to supply the materials
accordingly at the point of consumption and to continuously improve by
considering the customers feedback.

3. Campco Chocolate Factory Quality control department is committed towards

supplying high quality chocolate products by applying HACCP, Good
Manufacturing Practices and Good Sanitary Principles in the process and thereby
assuring the safe quality food.

4. HACCP ensures the safety of the products as per Codex Alementarius

standards while GMP ensures the implementation of the Good manufacturing
practices and both in turn are ensured by Quality Control Department.

5. CCF Quality Assurance also covers the periodical verification and calibration
of the equipments used for process control and hence ensures the correct
proportions of the ingredients.

6. Inspection of the raw materials for stipulated specifications and final products
for its physical, chemical and microbiological parameters to ensure the full safe
quality food to the consumers and customers.

7. Final inspection of the products as per set norms along with products sensory
evaluation by the well trained and screened tasters to ensure the consistency of
the products.

8. Continual improvement with respect to technology and process for the delivery
of safe quality products to Customers/Consumers.

9. Review and update this policy ensuring it continues to reflect Campco¶s

products value in concurrence to the expectations of consumers.


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