Growing rice, growing tensions: strategic challenges in the Madadgar Cooperative Society (A)

Learning outcomes After completing the case discussion, students will be able to: Case overview/synopsis The Madadgar Cooperative Society is an agricultural cooperative established in Badin, Sindh, with the aim of enabling small rice farmers to escape exploitative market arrangements and access higher-value export markets. Initiated and operationalized by Mr Abdul Hameed Abro, the cooperative brought together 60 small farmers, arranged collective financing, supplied quality inputs and coordinated cultivation under a shared production and marketing strategy. The central plan was to process rice through the cooperative’s own mill and sell collectively to export buyers, thereby improving prices, transparency and farmer incomes. As the 2025 harvest approached, however, the cooperative faced a critical challenge. The rice mill was not yet operational, no export order had been finalized and private mills in the region were fully booked. Local brokers began offering attractive spot prices, increasing pressure from farmers who were uncertain about waiting without confirmed buyers. Management now faced a difficult decision: whether to allow farmers to sell independently this season, risking dilution of collective discipline, or to hold farmers together around the long-term cooperative vision despite short-term uncertainty. The case places students at this decision point, requiring them to evaluate strategic, operational and governance trade-offs in cooperative-based supply chains. Complexity academic level This case is suitable for undergraduate final-year students studying agribusiness, supply chain management and value chain analysis and for postgraduate and MBA students. It can also be used in introductory courses on cooperative management or agricultural entrepreneurship. Subject code CSS 9: Operations and logistics.