Organic Cotton Market Report 2018
Organic Cotton Market Report 2018 Strapline? Foreword from La Rhea Pepper Call to action
Towards a more connected community SET A TARGET
The organic cotton sector has been working diligently to Starting with the Organic Cotton Accelerator (OCA) and Commit to transitioning your cotton usage improve livelihoods and agricultural impacts for the past Textile Exchange’s Organic Cotton Round Table (OCRT), to organic and set quantitative, time-bound 25 years. All of us care deeply about the vibrancy of discussions are in place to plan on how to work more targets to help track progress. the sector and its leading role in the sustainable textile closely to support a more connected community and BE CONFIDENT IN YOUR journey yet, for the past number of years, the organic sector-wide collective impact. How can the OCRT’s CONTENT CLAIMS cotton sector’s growth hasn’t been reflecting this. convening, catalyzing and educating work compliment Earlier this year, we asked - would a more connected OCA’s work investing in key issues and farm end Use a chain of custody standard to track community support organic cotton to have a larger support to lead to a greater collective impact? your product to market. collective impact? We are very excited about this direction and look MAKE AN IMPACT As a part of this deep reflection, we spoke with many of forward to your input and help in connecting the sector Work with suppliers to build transparency you, hearing directly and indirectly some clear desires. for greater impact. Stay tuned for more information on and ensure impact on the ground. While we know impressive work is being done and this following the 2018 Global OCRT in Milan on 22 organic cotton production is up this year, we also know October. INVEST IN TRANSITIONAL we are nowhere near where we need to be to have Looking for innovative ways to do great the level of impact we know the sector could have. things? Invest in cotton in transition-to- One concern we have heard loud and clear is the La Rhea Pepper fragmentation of the sector and lack of required aligned organic, blended with your certified organic. Managing Director, leadership. Textile Exchange DIVERSIFY YOUR SOURCING We therefore looked for best practice models that Consider a diverse approach to building your demonstrate what it takes to move from isolated organic supply base, different regions offer impacts to a collective, connected impact. It turns out different opportunities. there are five key conditions needed: DO BUSINESS DIFFERENTLY 1. A Common Agenda How do you re-engineer your sourcing 2. Shared Measurement practices? OCA, ChetCo, OrganiMark’s “cluster” program - each help brands and 3. A Mutually Reinforcing Action Plan suppliers leverage scale they create together.
4. Continuous Communication TAKE YOUR SEAT AT THE TABLE
5. A ‘Backbone’ Structure to support it Join our Global and Regional Organic Cotton Round Tables.
Cover Page Photo: Farmer Field School, Ethiopia - Pesticide Action Network UK Independent review
BSD Consulting performed an independent review of Accountability Principles and considered that the After careful revision of the OCMR 2018 and its underlying the data collection process used by Textile Exchange report has satisfied the Inclusivity and Responsiveness data collection process, we can affirm that Textile Exchange in compiling data for the annual Organic Cotton Market principles in full. A total of eight local ambassadors was able to improve the accuracy and completeness of the Report (OCMR). The objective of the critical review have been involved in this year´s data collection presented data and deliver a reliable picture of the current is to provide Textile Exchange’s stakeholders with an process. With the help of this support staff and partner state of organic cotton production. Using data triangulation independent opinion about the quality of the reported organizations, Textile Exchange was able to establish and investigation, the team put a considerable effort in data and the adherence to the principles of international a strong network of partners allowing it to approach compiling the global data. benchmarks such as the AA1000APS (2018) and the the data collection from different perspectives. During GRI Standards. The full statement is available here. the production year, many producer groups have been To further benefit from this effort, we recommend that Textile visited in loco, which allowed first-hand confirmation Exchange expand the report in future cycles with impact BSD Consulting considers the total of 117,525 MT of numbers. Furthermore, Textile Exchange has made data that can distinguish the importance of organic certified of organic cotton for the production year 2016/17 updates in the data collection methodology applied in production in an environment of increasing sustainability reported in the OCMR 2018 to be an accurate and the prior report and presented a revised version in order claims of market partners and related certification schemes reliable estimation. Textile Exchange has made a major to conduct the data collection of this report during our with less rigid benchmarks for production. effort in obtaining more data from Certification Bodies review process. (CBs) and, at the same time, improved the quality of producer data, by establishing direct relations with With reference to the Impact principle, the OCMR 2018 the groups through visits or using data from existing is providing case studies to document the evolution and Beat Grüninger partner programs to confirm the data sets derived from development of organic cotton in all covered regions Director, Group Partner, BSD producer sources. The data collection process also and also predicts a significant increase of converted Consulting satisfied the completeness principle to a great extent areas in the coming years. So far, anecdotal references as it covered 32 out of 64 cotton producing countries, on how organic cotton will contribute to the Sustainable representing nearly 95 percent (21,936,000 MT) of Development Goals suggest that cotton will have a the total production registered by the International strong positive impact on society and environment. Cotton Advisory Committee (ICAC). The data has been compiled using three different sources: Data For the next reports, we recommend that Textile delivered directly by producer groups, data from official Exchange gather objective data from impact studies governmental agencies registering certified production that can corroborate this impact. Given the fact that and data provided by certification bodies. consumers often do not make a clear distinction between organic and less rigid sustainability BSD has verified a sample of templates used by the certifications, such impact data can prove that organic ambassadors for data collection and confirmed that has stronger positive footprint and is key to further triangulation and quality checks have been used increasing organic certified cotton production. to guarantee accuracy of the data to the extent it was technically possible for Textile Exchange. BSD Consulting evaluated the application of the four What’s inside
Contents EMENA & Central Asia 38
Key findings 6 Q&A with Aydin Unsal 43
The year in numbers 6 Stakeholder directory 45
Snapshot of the wider organic sector 7 Latin America & the Caribbean 46
Global organic cotton production 8 Q&A with Orlando Rivera 50
2016/17 organic cotton production 9 Stakeholder directory 52
Q&A with Anita Chester 11 South & Southeast Asia 53 Organic Cotton Round Table 12 Q&A with Arun Ambatipudi 58 Organic cotton & the Sustainable Development Goals 13 Stakeholder directory 64 Brand commitments to organic cotton 14
Q&A with Crispin Argento 15 United States of America 65
Stakeholder directory 16 Q&A with Sally Fox 70
Organic cotton pricing 17 Stakeholder directory 72
Fiber classification 19 Standards & Certification 73
Africa 20 Organic textiles certification 75
Q&A with Prama Bhardwaj 25 Central Database System 76
Stakeholder directory 29 Methodology & Disclaimer 77
China 30 2018 methodology & disclaimer 78
Q&A with Veronica Yow 34 About Textile Exchange 80
Stakeholder directory 37 © | Page 4 Welcome to the 2018 Organic Cotton Market Report
We are happy to note that this year’s Welcome back to Textile Exchange’s 13th Organic be found in India, Tanzania, and Pakistan, with China, OCMR and the processes leading up to Cotton Market Report (OCMR). Turkey and Kyrgystan also reporting substantial areas. putting this report together have been “ GRI compliant. This improvement fills a Our 2018 report is packed with even more data and Our mantra: Growth must come with Integrity. critical data gap in the sector and C&A analytics, alongside the ever-popular country round- Foundation is glad to have supported ups and bite-sized, yet totally inspiring, stories from the In this report you will find many fine examples of organic Textile Exchange on this journey. We hope organic field. cotton programs across the globe. You will see they are transparent, otherwise they would not be featured. that this trajectory continues allowing the Globally, organic cotton production grows ten percent. These champions, among others, work hard to grow industry to make informed choices based the sector with integrity and respect for their fellow on credible data. We are pleased to announce a ten percent growth in partners, their communities, and the environment. organic cotton fiber production in 2016/17, over the year before. The biggest volumes are coming from We are proud to be independently verified. India, China, Turkey and Kyrgyzstan. Anita Chester After two years of intensive work with BSD Consulting, Head of Sustainable Raw Many countries have growth in the double-digits. supported by the C&A Foundation, we have some big Materials, C&A Foundation news to report this year. We are extremely proud to We witness strong growth in China, the USA, and announce that our data collection and management Brazil this year, with Uganda, Tanzania, and Benin also systems have been independently assessed by BSD’s achieving high growth on the African continent. auditing arm and found to be GRI compliant. This is a While organic still occupies less than one percent rewarding moment for Textile Exchange, especially for of global cotton production, it’s interesting to look our data and analytics team and regional ambassadors at the organic share within each country. Tanzania who have worked so hard for this recognition. and Tajikistan are producing between seven and ten Reserve your place at the Table. percent of their overall cotton supply organically, while Kyrgyzstan’s organic was calculated at an impressive Whether it’s Milan, Izmir, or Koudougou, there’s a place 66.8 percent of the country’s overall production. for all at Textile Exchange’s Organic Cotton Round Table. Join us and you will receive a warm welcome! In-conversion figures reveal serious growth is just We hope to see you soon. around the corner.
One of the most exciting observations is the potential for growth we are seeing through reported in-conversion Liesl Truscott figures, which reveal that a whopping 217,721 ha (50 Director of Europe & Materials Strategy, percent of the current land area) are in conversion to Textile Exchange organic. The largest areas of in-conversion land can Key findings
Organic cotton production Substantial areas of land are The year in numbers grows ten percent globally. in transition to organic. In 2016/17, global organic cotton 214,863 hectares of cotton-growing 117,525 472,999 214,863 production reached 117,525 MT land were in transition to organic fiber, representing a ten percent in 2016/17, almost 50 percent of Organic Cotton Organic Certified Organic Fiber (MT) Land (ha) In-Conversion growth. This stems, for the most the current certified land area. This Land (ha) part, from China, fuelled by growing indicates strong growth over the demand both from the organic next few years as this land reaches TOP 5 PRODUCING COUNTRIES: dairy industry and the domestic certification. The vast majority of textile sector. Other countries that in-transition land is in India, with the
contributed significantly to the remainder stemming predominantly Tajikistan Kyrgyzstan 6,405 mt +10% 8,019 mt growth include Tanzania, Uganda, from Pakistan, China, Tanzania, and 5.4% over 2015/16 6.8% Benin, Turkey, and the USA. Turkey. Turkey 7,741 mt Organic Cotton Fiber (MT) 6.6% China India 22,521 mt More brands are committing Promising developments 19% +56% 59,470 mt over 2015/16 to organic. from organic cotton 51% initiatives span the globe. Organic Certified Land (ha) A growing number of brands and retailers are setting targets and From brand commitments and signing commitments to increase government-backed initiatives to TOP 5 PRODUCING COUNTRIES BY: GROWTH IN GOTS CERTIFIED their use of organic cotton, either industry collaborations and strategic FACILITIES: under their own steam or as part of partnerships, there has been a IN-CONVERSION GROWTH public, group commitments such as surge in the efforts being made (HA LAND) (% VOLUME) the German Textile Partnership or across the globe to grow and the Sustainable Cotton Challenge. support the organic cotton sector. In India 172,180 Senegal +427% Such commitments are driving this report, you will find directories at Tanzania 18,409 Brazil +155% change in supply chains as brands the end of each section showcasing invest in finding innovative and long- just some of this great work. Pakistan 12,283 Uganda +155% term solutions to secure supply and China 5,108 Benin +72% h8% build greater transparency. Turkey 2,721 Egypt +70% 5,024 Certified Facilities
BACK TO CONTENTS © | Page 6 Snapshot of the wider KEY ARABLE CROPS KEY PRODUCING REGIONS (LAND) organic sector Cereals Europe 13.5m ha The wider organic sector continues to expand globally, with a Green fodders 15 percent rise in organic farmland and a 12.5 percent rise in Oilseeds the number of organic producers from 2015 to 2016. Dry pulses This page provides a snapshot of the wider organic sector in Latin Oceania America 27.3m ha 2016 (the most recent statistics available). It’s useful to have Textile crops 7.1m ha these trends in mind as we dive into the growth trends in organic cotton in the remainder of this report. 0m ha 1.5m ha 3.0m ha 4.5m ha
FARMERS CERTIFIED LAND MARKET
The number of organic producers is increasing. 57.8m ha The global organic market is growing and consumer demand is organic farmland (incl. in-conversion) increasing. 2.7m organic farmers 178 countries $91.4b US in organic farming global organic food market 2016
+12.8% +15% +12% over 2015 over 2015 over 2015
TOP 3 COUNTRIES: FARMERS TOP 3 COUNTRIES: LAND TOP 3 COUNTRIES: MARKET
Uganda Australia US 835,000 27.1m ha $44.4b US
India Argentina Germany 210,352 3.0m ha $10.85b US
Mexico China France 210,000 2.3m ha $7.65b US
1. FiBL & IFOAM - Organics International, 2018, The World of Organic Agriculture: Statistics & Emerging Trends 2018
BACK TO CONTENTS © | Page 7 Global organic cotton production
BACK TO CONTENTS 2016/17 organic cotton production
A global snapshot 220,478 472,999 117,525 2016/17 was an exciting year for the Data Revisions Organic Farmers Organic Certified Land (ha) Organic Cotton Fiber (MT) organic cotton community. As well as seeing promising developments from Textile Exchange relies on its data organic cotton initiatives across the providers for data comprehensiveness, globe, we also saw a ten percent growth accuracy and integrity. Whilst we carry in global fiber production, which reached out a systematic completeness check 117,525 MT. on our data processes, this is done on best available information at time of 10% 214,863 0.5% This growth stems for the most part from reporting. For this reason, as we gain Fiber Growth Over Organic In-Conversion Cotton Globally Is Organic China, fuelled by growing demand both further insights and information from 2015/16 (MT) Land (ha) (ranging from <1-67%) from the organic dairy industry and the our data sources each year, previously domestic textile sector. Other countries reported data is corrected and revised that contributed significantly to the global to accurately reflect historical trends and 97% 18 Countries Global Production Comes From Just growth include Tanzania, Uganda, Benin, growth rates. The following revisions are Producing Organic Cotton Turkey, and the USA. made this year: 7 Countries*
Another noteworthy trend this year is the • 366mt fiber reported for Pakistan in substantial area of cotton-growing land 2015/16 was transferred into Year 3 INDIA CHINA KYRGYZSTAN TURKEY in transition to organic, which totalled in-conversion. 214,863 ha, suggesting strong growth over the next few years. To put this • 4,524mt fiber reported for USA in figure into perspective, it is equivalent to 2015/16 was adjusted to 3,599mt. 51% 19% 7% 7% over 50 percent of the current certified • Fiber production for Greece was land area. Over 80 percent of this updated to 1,114mt, 1,155mt, in-conversion land is in India, with the 990mt, 686mt, 517mt, 1,320mt 51TAJIKISTAN+49P 19+81P USA 7+93PTANZANIA7+93P remainder stemming predominantly from and 1,403mt between 2010/11 Pakistan, China, Tanzania, and Turkey. and 2015/16, respectively.
In total, there were 220,478 farmers • 275mt fiber reported for Kyrgyzstan producing organic cotton in 2016/17, in 2013/14 was adjusted to 335mt. 4% 3% spread across 18 countries. Together, 5% they produced 117,525 MT organic • Fiber production for Kyrgyzstan, cotton fiber on a total certified land area Tajikistan and Turkey reported for 5+95P 4+96P 3+97P of 472,999 ha. 2015/16 should be for 2016/17. As *The remaining 11 countries (and their global mark share) are: Egypt (1.5%); Greece (0.7%); Uganda (0.7%); Benin (0.6%); retrospective data was not available, Burkina (0.4%); Peru (0.29%); Mali (0.1%); Brazil (0.04%); Senegal (0.004%); Thailand (0.004%); Argentina (0.0003%). the data was not adjusted. BACK TO CONTENTS © | Page 9 2016/17 organic cotton production
Global trends COMPARISON BETWEEN CONVENTIONAL AND ORGANIC COTTON PRODUCTION TRENDS
30,000,000 300,000 2004-05
25,000,000 250,000 Organic Fiber Production (MT)
2005-06 20,000,000 200,000
2006-07 15,000,000 150,000
10,000,000 100,000 2007-08
Conventional Fiber Production (MT) 5,000,000 50,000 2008-09 0 0
2009-10 Conventional
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Organic 2010-11
2011-12 REGIONAL ORGANIC COTTON PRODUCTION - 5 YEAR TRENDS
2012-13 100,000 Africa 90,000 2013-14 80,000 China
70,000 EMENA & 2014-15 60,000 Central Asia 50,000 Latin America 2015-16 40,000 & Caribbean
Fiber Production (MT) 30,000 South & 2016-17 20,000 Southeast Asia 10,000
0 50,000 100,000 150,000 200,000 250,000 300,000 United States 0 2012-13 2013-14 2014-15 2015-16 2016-17
Organic Cotton Fiber Production (MT)
BACK TO CONTENTS © | Page 10 Q&A with Anita Chester
each of the regions that we work in are Where do you go from unique in their agro-climatic and socio- here? Anita Chester Q economic contexts, they experience Head of Sustainable Raw Materials, a common thread of challenges. We are deepening our work both in C&A Foundation Lack of access to good quality non- India and globally. While continuing to genetically modified (non-GM) cotton is increase the number of organic cotton easily the greatest obstacle that holds farmers, we also focus on strengthening back organic cotton. This is not just a farmer collectives. We need to drive Where is C&A Foundation organic cotton farmers in their programs a shift from philanthropic to market in its journey of its organic have seen an income increase of over problem in India; it is a challenge even Q in countries where GMOs have not based models. Simultaneously, we cotton program? 25 percent compared to conventional will continue to support OCA’s work to farmers in the same areas, thanks to been approved. This is not surprising The case for organic cotton may not be bring the industry together and embed around 50 percent decrease in input as research has mostly been biased immediately evident, but its restorative newer business models in the sourcing cost. This, when the reported yield even in favour of GM cotton seeds, and and regenerative nature presents operations of brands. These business after four years was 3 percent less than there has been limited investment and an incredible opportunity to radically models are aimed at both improving their conventional neighbours. Further, research on indigenous cultivars. transform the textile industry’s impact the business case for farmers as well a recent Life Cycle Assessment study on both the environment and farmers’ Other challenges include i) the lack as the integrity for brands. OCA will supported by C&A Foundation reveals lives. In 2014, C&A Foundation began of support systems for farmers that also coordinate industry investments the substantially reduced environmental its journey of supporting farmers to enables access to good quality into areas, such as seed research footprint for organic cotton compared to adopt organic cotton farming practices. bio-pesticides and bio-fertilisers, and breeding. While actively engaging conventional. Already the foundation, along with and knowledge on organic cotton with agriculture universities, research nine partner organizations, has made Additionally, C&A Foundation’s work practices; (ii) weak market signals and institutes and seed companies to it possible for approximately 54,000 with the Organic Cotton Accelerator a fragmented supply chain, which address the seed challenge, C&A smallholder farmers across Brazil, (OCA) has been critical to move the makes market access for organic cotton Foundation is committed to contributing China, India, Pakistan and Tanzania to entire industry, as has our continuous farmers difficult; and (iii) a weak policy towards a robust global strategy for transition to organic cotton. Once fully engagement with governments, which environment for organic cotton. These non-GM seed. Collaboration is critical to certified, these farmers will constitute has yielded initial positive results in terms common factors that resonate with the make organic cotton thrive. an additional 20 percent of the existing Indian experience, teach us that there of policy level support For more information on the C&A global organic cotton farmers. is a lot to be done, and organizations need to come together and pool their Foundation’s work in organic see the What have been the Foundation’s 2017 Annual Report In India, where C&A Foundation started lessons learnt in the journey collective resources and efforts to create its organic cotton work, farmers Q above? synergies. are beginning to see the economic benefit of organic cotton. In 2017-18, Even though there is renewed interest in foundation partners in India reported that organic cotton, challenges remain. While Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 11 Organic Cotton Round Table
The Organic Cotton Round Table continues to regionalize Global OCRT Milan 2018: launch of the global assembly
Textile Exchange’s Organic Cotton into focus, strengthening existing efforts In line with the OCRT’s current between regions, supply networks and Round Table (OCRT) provides the and initiatives, and shaping customized regionalization strategy, the 2018 Global global thinking to develop the pathway shared space needed for the organic approaches. OCRT in Milan will put the spotlight on to regional growth. cotton community to convene, learn the great work and collaborations taking more about issues facing the organic Textile Exchange first introduced the place in each region. OCRT Scholarship Fund cotton sector and, most importantly, find concept of the Regional OCRT in Izmir Textile Exchange has always striven to ways to take action. in 2017. In partnership with Izfas, it This will be achieved through the co- was designed to explore opportunities creation of a General Assembly for ensure that the OCRT is as inclusive After six years of approaching barriers for organic cotton in Turkey, Egypt and Organic Cotton. Delegations from each as possible and, with the new General to growth in organic cotton at the Central Asia, returning again in May region will come together alongside Assembly approach this year, it is more global level, the benefits of regionalizing 2018 (more on page 42). The success brands, retailers and other stakeholders, important than ever to have voices strategies has become increasingly in Izmir has now led to the launch of the to report on and discuss globally from each region and part of the supply apparent. Ultimately, the same issues Regional OCRT Burkina Faso, part of a their regional updates, activities and network in the room. We have therefore and opportunities exist for all, but new collaboration with Catholic Relief successes. The General Assembly established the OCRT Scholarship each region is at a different stage of Services on a series of organic cotton will take the informal linkages of the Fund, contributions to which will go development and therefore requires a focused activities in West Africa (more current OCRT to a more focused and towards providing support to farmers different strategy, alongside designated on page 26). mindful model of engagement between and other regional representatives who resources, investment models, and stakeholders, encouraging a two-way wouldn’t otherwise have the means to networks of supporters. We are at an exciting stage now flow of information between regional travel to Milan to participate in the 2018 where we can learn from our collective communities. All of the ingredients OCRT. Benefits also flow back to brands Textile Exchange has found that bringing experience in other regions, tap into that make the OCRT so valuable to and other stakeholders, who gain the people together at the regional level what works, and fast-track innovation stakeholders will remain, such as the opportunity to meet and learn from a from all parts of the supply network is and action! multi-stakeholder, accessible, and wider range of producers and regional a powerful way to catalyze action by catalytic principles, with the added representatives. bringing region-specific opportunities impact of strengthened interaction
BACK TO CONTENTS © | Page 12 Organic cotton & the Sustainable Development Goals
Learn how organic cotton helps achieve the SDGs:
• Achieving SDGs Through Organic Cotton (webpage)
• Achieving SDGs Through Organic Cotton (pdf)
• Global Organic Textile Standards & the SDGs
• How Textile Exchange is supporting the SGDs
The U.N. Sustainable Development cities, regenerating and nurturing the How can the textile industry advance these targets? Goals — also known as Global Goals earth, its resources, and its people. or the SDGs — is an inter-governmental KPMG and Textile Exchange have just agreement of the United Nations and The UNDP has identified three priority released a report entitled “Threading 193 countries that provides a framework SDGs as central to its strategic plan - 1: the Needle: Weaving the SDGs into the of 17 specific, aspirational goals that End Poverty, 10: Reduced Inequalities, textile, retail and apparel industry”. address the social, economic and and 16: Peace, Justice and Strong environmental dimensions of sustainable Institutions. Organic cotton makes a A culmination of industry interviews, development. significant contribution to all three – NGO input, and desk research, the providing a market-driven solution to report highlights shared value examples Organic cotton can play an important poverty, reducing inequality by raising for companies in the sector grappling role in helping countries achieve the farm incomes, and promoting inclusive with how to integrate the SDGs into their SDGs. Millions of people around societies through its reliance on core business and global supply chain. the world live in rural communities cooperative working. Organic cotton The report builds on the SDG Industry dependent on agriculture. Holistic is the vehicle to organic communities, Matrixes, by taking a value chain organic farming systems based on the and success depends upon SDG approach to corporate action on the organic principles of health, ecology, 17: Partnership for the Goals, building SDGs specifically in the apparel sector. fairness and care build thriving and committed, interdependent supply resilient communities that attract people networks that share risk and reward. to stay on the land rather than move to
BACK TO CONTENTS © | Page 13 Brand commitments to organic cotton
Where organic cotton was once seen Superdry, for example, has said it will German Textile Partnership’s big shift towards organic cotton as “niche,” today, brands of all sizes be working with farmers and suppliers are making it a major component to support and help grow the organic The German Textile Partnership will have binding deadline and volume of their fiber and material portfolios. cotton sector in order to be able to is a multi-stakeholder partnership targets for all members. Alongside More and more brands and retailers reach their ambitious goal of using 100 with the objective of achieving individual goals, Partnership members are setting targets and signing up to percent organic cotton by 2040. social, environmental and economic have jointly agreed to use at least 35 commitments for increasing their use improvements all along the textile supply percent sustainable cotton by 2020, Other brands are making strong of organic cotton, encouraged by chain. Partners include the following with 10 percent of the total volume being commitments too, including (but far growing evidence of the sustainability stakeholder groups: business sector; organic cotton. The aim is to increase from limited to): Skunkfunk, Stella benefits of the fiber, and by the non-governmental organizations; trade the proportion of sustainable cotton to McCartney, and EILEEN FISHER, millennial generation bringing its buying unions; standards organizations; and 70 percent by 2025, with 20 percent who have all committed to sourcing power to the market. the German government. From 2018, being organic cotton. 100 percent organic cotton by 2020; the Partnership for Sustainable Textiles According to the Key Insights Mantis World, who commits to 100 Report from Textile Exchange’s percent organic cotton by 2021; and 2017 Preferred Fiber & Materials Nudie Jeans Co, who committed to 2025 Sustainable Cotton Challenge Benchmark, 60 percent of participants 100 percent organic cotton by 2017, who completed the organic cotton a target they have now achieved. In May 2017, 13 of the world’s In March 2018, it was decided that the module said they have set SMART most renowned clothing and textile International Sustainability Unit would targets for uptake of organic cotton. Many more brands are committing to companies, in the presence of His close. Given this decision, it was agreed Many are also part of public, group using organic cotton as part of their Royal Highness The Prince of Wales, that Textile Exchange would take over commitments such as the German wider commitments to source all of signed up to the 2025 Sustainable the role of the initiative’s Secretariat, and Textile Partnership or the Sustainable their cotton from more sustainable Cotton Challenge. In October 2017, 24 we are thrilled to help keep this great Cotton Challenge. Such commitments sources, such as those brands that more companies signed up at Textile momentum going. are driving change in supply chains have signed up to the Sustainable Exchange’s annual conference. C&A as brands invest in finding innovative Cotton Challenge or are part of the also joined in January 2018, bringing the If your company is interested in signing and long-term solutions to secure German Textile Partnership. total number of companies to 38. up for the 2025 Sustainable Cotton supply and build greater transparency. Challenge, please fill out the Pledge on The initiative is a catalyst to spur a the initiative webpage. shift in the market towards the use of more sustainable cotton. Through Participating companies are required this challenge, these companies have to independently publish their progress committed to ensuring that 100 percent through Textile Exchange’s Preferred of the cotton they use comes from Fiber & Materials Benchmarl Program. sustainable sources by 2025.
BACK TO CONTENTS © | Page 14 Q&A with Crispin Argento
at the farm.Through our mission, we Where do you see OCA in are focused on integrity, supply, quality Q a year’s time? Crispin Argento and impact. Our “farm first” approach brings together the entire supply chain OCA is the first market-driven multi- Executive Director, to invest in programs and innovations stakeholder initiative dedicated entirely to Organic Cotton Accelerator and support the farmers that dedicate the enrichment and promotion of organic themselves and their families to growing cotton. Since its inception at the Organic this extraordinary fiber for our benefit and Cotton Round Table (OCRT), OCA has set ambitious goals around growth, but Tell us about your vision for What are you most excited enjoyment. recognizes there are many immediate the organic cotton sector about doing in your new Q solutions that will lead to real impact in Q role? As we continue to come together as At OCA, we are committed to creating a sector around a shared vision and the near future. a prosperous organic cotton sector I am thrilled to be leading OCA at a time platform through OCA, we will finally Over the course of this year and the that benefits everyone—from farmer to when the sustainable cotton sector is realize the full potential of organic cotton next, it is OCA’s primary responsibility to consumer. To drive this commitment, gaining that critical momentum to bring and its contributions for people, planet bring the sector together to leverage our OCA Affiliates and Partners have come lasting change. Personally, I am humbled and long-term prosperity for generations collective expertise, mobilize resources together to make organic cotton a and honored for the opportunity to to come. and continue to demonstrate through viable, scalable and impactful solution work with people across the sector and our programs and interventions that for all. OCA is focused on accelerating around the world, who have dedicated What have been the key organic cotton is a viable and scalable investments and interventions that serve their lives to advancing organic cotton learnings in the journey solution from farmer to consumer. from farmers to spinners, brands to the sector – addressing challenges Q above? throughout the supply chain with activists, to the people on my team. It is OCA is a movement, a platform emphasis on the farm and farmers. their vision, expertise and commitment OCA is focused on engaging and and a tool to make organic cotton a that inspires my dedication to OCA’s and developing farmers, seed and scaling success. Where and how far we go As a global platform, OCA celebrates the sector’s success. That is what truly investment in the sector to accelerate as a sector will be entirely up to those the diversity within the cotton sector; we excites me. integrity, quality, supply and impact— that have made organic cotton their value the contributions that sustainable globally. This includes a cutting- edge business. It is our willingness, together cotton has made to advancing positive What is the key role you direct brand-to-farm sourcing service, as representatives of the sector, to impact all over the world. Our larger Q see OCA playing? farmer capacity building, industry- work and invest in its future. What that vision recognizes organic cotton’s role in leading farm business intelligence and As an accelerator, OCA was formed to looks like I don’t know, but I imagine it meeting 2030 Sustainable Development impact data, investments in non-GMO drive the solutions in the sector that will includes a future where organic cotton Goals and we take special pride in seed innovations, integrity and product lead to systemic and lasting changes is synonymous with positive economic, the vital role OCA plays in driving all traceability as well as the development through its investments and interventions social and environmental impact for all. sustainable cotton forward. of a fund to empower farm groups and scale sector investments. For more information, visit the OCA Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases website. an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 15 Stakeholder directory SWITZERLAND Who’s doing what across the globe? bioRe Foundation Non-profit
This map locates the headquarters of some of the key international organizations working on organic cotton. Region-specific activities are detailed later in this report. C&A Foundation Non-profit UNITED KINGDOM
CottonConnect FiBL Non-profit Research Institute
Fairtrade HELVETAS Swiss International Intercoorporation Voluntary Standard Non-profit
Pesticide Action Network UK Non-profit GERMANY
GIZ Soil Association Non-profit Non-profit
Global Organic Textile Standard (GOTS) USA Voluntary Standard
Textile Exchange SOUTH AFRICA Non-profit OrganiMark IFOAM-Organics International Service Company Non-profit
THE NETHERLANDS
Organic Cotton Supply Chain Intervention: Standards/Chain of Custody Market making Accelerator (OCA) Non-profit Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 16 Organic cotton pricing
There is no universally accepted • Trade agreements between to farmers who are trading at the farm Country Fiber Seed Lint definition or formalized mechanism producers and buyers gate, often receiving their annual income type US$/kg US$/kg Avg. Avg. for arriving at a price for organic seed in one lump sum. Farmers sell to cotton or fiber. • Fairtrade certification on top of aggregators, ginners, mills, occasionally Benin S-M-L 0.55 2.10 organic certification. to brands, and also to traders in the Brazil S-M-L 0.80 2.40 The rule-of-thumb is to take a Burkina Faso S-M-L 0.60 The average price differential is open market. reference price (this is usually the China L-ELS 3.39 somewhere between 5 and 20 conventional cotton price quoted in the If farmers are vertically integrated into China S-M-L 2.93 country of origin or on the international percent, but can be as little as one the mills, or they have agreed trade and Egypt L-ELS 1.39 4.13 commodity market at a set time) percent or as large as 100 percent. price arrangements with a buyer, partner India S-M-L 0.72 1.90 and add a percentage increase to company or organization, the price can The price differential is supposed to India L-ELS 0.88 2.15 cover the organic value addition, and cover: be decoupled from the commodity possible compensation for a loss in market, or at least a minimum price is Kyrgyzstan S-M-L 1.80 yields. • Cost of production (and any agreed upfront, alongside other terms Mali S-M-L 0.60 losses in yield) and conditions of trade. Pakistan S-M-L 0.55 1.45 This differential is often called a “price Peru L-ELS 0.94 2.79 premium”, at Textile Exchange we • Internal Control System (ICS), Costs during manufacturing, such Senegal S-M-L 0.60 refer to it as a “price differential.” It is certification and inspections as factory certification, bookkeeping, Tajikistan S-M-L 0.55 1.88 agreed to between buyer and seller, chain of custody, product segregation, yet heavily influenced by conventional • Training and extension services possibly machine cleaning and running Tanzania S-M-L 0.58 commodity market prices. smaller volumes, need to be part of the Turkey S-M 0.71 2.08 • Investment in farming operations final costing, but it is the value-addition Turkey M-L 0.78 2.17 Differentials on the seed cotton or • A percentage may also go at the growing stage where the majority Uganda S-M-L 1.52 on the lint (ginned fiber) can range towards the collective needs of of the organic benefits are made. USA S-M-L 2.55 depending on factors such as: the community such as schooling, USA L-ELS 3.33 [See more on pricing models here: health care, and housing • Market conditions and price A World Beyond Certification: A best elasticity, and market variances (in • Research, development and practices guide for organic cotton the supply and demand cycle) investment in seed and farm trading models, Textile Exchange and • Quality and staple length innovations Kering, page 21-25.]
• Country of origin The seed cotton price is the amount paid for the harvested cotton bolls Note: This organic cotton pricing table provides estimated averages only, based on conversations with local experts. • Amount of trash or contamination (with seed still attached). It is the seed In 2016/17, according to our information, organic cotton prices ranged from US$/kg 1.45-3.33 (average of 2.34) cotton price that is most important compared to the Cotlook Index that ranged from 1.71-1.95 (average of 1.82) over the same time period. Please refer to accompanying text that explains factors affecting price, alongside organic differentials.
BACK TO CONTENTS © | Page 17 Organic Cotton Lint Prices
The organic lint price is the market price USA organic upland averaged 2.55 of the post-ginned cotton fiber. The USD/kg, around 40% over the Cotlook 300,000 seeds have been removed (for seed Index. USA organic Pima sold at 3.33 selection breeding or for processing by USD/kg. the organic food or feedstock sector). 250,000 The fiber is compressed and baled for Sales of Indian organic (short, medium, the textile industry. This is the product long) fiber averaged 1.90 USD/ that feeds the spinning mills. Lint can be kg, fetching around 7% on top of conventional sales. ELS fiber averaged sold to the spinners by farmers, ginners, 200,000 or traders. 2.15 USD/kg.
Turkish organic lint prices averaged Peruvian organic (the high quality pima with an extra long staple) lint prices 2.17 USD/kg, ranging between 1.90 150,000 and 2.32 USD/kg, depending upon averaged USD 2.79, but prices varied quality and staple length. Turkish organic between USD 1.95 and 3.63 through fiber averaged 10 percent higher out the year. than conventional prices on the Izmir Brazil produced Fairtrade organic cotton 100,000 Commodity Exchange. in North West of the country. The fiber Organic Cotton Fiber Production (MT) In China organic fiber prices averaged prices ranged between USD 1.80 and 2.93 USD/kg (differentials ranging 3.00 per kg, averaging 2.40 USD/kg. 50,000 between 15-35% over conventional Organic fiber from Kyrgyzstan, Tajikistan prices). ELS prices averaged 3.28 USD/ and Pakistan was priced between 1.45 kg, up to 60% higher than conventional and 1.60 USD/kg. ELS prices in China. 0 India Turkey 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
BACK TO CONTENTS © | Page 18 Fiber classification
Global organic cotton fiber classification mapping KYRGYZSTAN TURKEY CHINA Jala-Abad Aegean Xinjiang L YC:50Ne L MIC:4.1-4.4 | YC:45-50Ne M L MIC:4.4 | YC:34-50Ne USA EGYPT Izmir Gansu Texas Belbeis / Fayoum Elbeheira TAJIKISTAN M MIC:4.3-4.9 | YC:40Ne M MIC:3.5-4.7 | YC:34-40Ne S M MIC:4.3-7.6 | YC:10-40Ne EL MIC:4.3-4.9 | YC:50-80Ne Fergana Valley/Khujand Hubei M MIC:3.91 | YC:40Ne BRAZIL M MIC:4.7 | YC:34-40Ne Piaui M MIC:4 | YC: 30-40Ne Ceara M MIC:4 | YC: 34-50Ne INDIA Rio Grande Do Norte M MIC:4 | YC:30-40Ne Rajasthan M MIC:3.5-4.9 | YC:30-40Ne Paraiba S M MIC:4 | YC:10-40Ne Madhya Pradesh M MIC:3.2-4.9 | YC:30-40Ne Pernambuco M MIC:4 | YC:30-40Ne Odisha M L MIC:3.7-4.5 | YC:24-45Ne PERU Andhra Pradesh Lambayeque L EL MIC:3.6-4.9 | YC:40-80Ne L EL MIC:3.2-6.2 | YC:35-60Ne Tamil Nadu Tarapoto L EL MIC:2.2-3.8 | YC:40-120Ne S MIC:3.2-6.2 | YC:10-40Ne Karnataka BENIN MALI TANZANIA L EL MIC:3.0-3.5 | YC:40-90Ne Chincha Glazoue Banikoara Shinyanga L MIC:3.2-6.2 | YC:35-50Ne M YC:20-40Ne Maharashtra M YC:20-40Ne M YC:20-40Ne M MIC:3.5-4.2 | YC:24-40Ne Banikoara Singida Fiber Length Accronyms M YC:20-40Ne Gujarat SENEGAL M YC:20-40Ne S M MIC:3.2-4.5 | YC:10-40Ne S Short MIC = Fiber Micronaire Koussanar, Senegal BURKINA FASO M YC:20-40Ne M Medium Ne = YC unit - English UGANDA System (1 Ne = 1 Hank/ lb) PAKISTAN L Long Bobo Dioulasso M L YC:20-60Ne YC = Yarn Count M YC:20-40Ne M MIC:3.5-4.9 | YC:24-36Ne EL Extra Long
3. Kering and Textile Exchange, 2017. Organic Cotton - A fiber classification guide. Africa
Photo: C&A Foundation, Tanzania
BACK TO CONTENTS © | Page 20 MALI Africa REGIONAL PRODUCTION SENEGAL 130 MT UGANDA 4 MT 2+98S 765 MT 24,380 46,555 29% 1+99S ETHIOPIA Organic Farmers Organic Certified Fiber (MT) 13+87S Land (ha) Year-On-Year Growth In 0+100Conversion +S 5,863 18,978 5% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
BURKINA FASO
5-YEAR PRODUCTION TRENDS 491 MT 4,000 BENIN 3,500 Benin 8+92S 3,000 Burkina Faso 699 MT 2,500 Mali 2,000 Senegal 12+88S TANZANIA 1,500 Tanzania Fiber Production (MT) 1,000 Uganda 3,773 MT 500 Madagascar 0 64+36S 2012-13 2013-14 2014-15 2015-16 2016-17
BACK TO CONTENTS © | Page 21 Tanzania Senegal Burkina Uganda Benin Faso
Africa Mali
In East Africa, Tanzania continues to BENIN account for the vast majority of the 2,715 7,369 1,363 277 4,337 8,319 region (as well as the continent’s) In Benin, the partnership between the Organic Farmers organic cotton production, followed by national Organization for the Promotion Uganda. Ethiopia will also join the mix in of Organic Agriculture (OBEPAB) and 2017/18 as PAN UK’s project reaches PAN UK enabled the recruitment of two 3,384 3,731 9,865 92 16,883 12,600 Organic Certified certification. additional female field agents. Farmers Land (ha) have been trialing new methods, such In West Africa, the 2016/17 season as using palm oil processing residue as saw favorable climate conditions which, fertilizer. As a result, producers achieved 699 491 130 4 3,773 765 Organic Cotton combined with training and support the highest organic cotton yield in the Fiber (MT) received by farmers in Benin and West Africa region, at 226 kg fiber/ha. Burkina Faso, resulted in an increase in production in each country except Mali, BURKINA FASO no data no data 569 no data 18,409 no data where investment is lacking. Organic In-Conversion In Burkina Faso, the RECOLTE project, Land (ha) While farmer numbers in the region led by Catholic Relief Services (CRS), continues to support farmers of the decreased by 2 percent, production 72% 5% 4% 427% 17% 155% increased by 33 percent, reflecting National Union of Cotton Producers of Fiber Year-On-Year improvements in yield experienced in Burkina (UNPCB) in training to improve Benin and Burkina Faso. These two production techniques. This resulted in an impressive yield increase of 63 countries accounted for the majority (53 0.6% 0.4% 0.1% 0.004% 3.2% 0.7% percent in 2016/17. RECOLTE is also and 37 percent, respectively) of West Share of Global Organic Africa’s total organic cotton production in involved in developing the first organic Cotton Production 2016/17. cotton gin in West Africa, as well as a new seed development initiative that 0.4% 0.2% 0.05% 0.1% 9.2% 2.7% aims to improve the quality and quantity Organic Share of National of non-GMO seed in Burkina Faso. Cotton Production Textile Exchange is partnering with CRS on a series of activities in Burkina Faso in 2018, including a Regional Organic Cotton Round Table. Read more about this and other CRS/ RECOLTE project updates on pages 26 and 28.
BACK TO CONTENTS © | Page 22 Africa
MALI SENEGAL
Mali’s production of organic cotton, In Senegal, Yakaar Niani Wulli (YNW), which reduced significantly in 2015/16 which was the main producer group in when the group MOBIOM ceased previous years, has ceased producing production, remained stable in 2016/17. organic cotton after struggling to find a However, it is expected to decrease market for it. again next year, largely due to reduced farmer training and support. This support A new farm group was created named was previously provided by HELVETAS’ SODEFIX, located in the district of organic cotton program, which has Missirah Wadene in the west of the now ended. The National Federation of country. SODEFITEX produced 4 MT Producers of Organic and Fair Farming of organic cotton fiber in 2016/17 but, in Mali (FENABE), which is made up of unless the market situation changes, little some of MOBIOM’s previous farmers growth is anticipated in the near future. but also many newcomers, sells its organic cotton through The Malian Textile Development Company (CMDT) but is finding it lacks the support required to grow the project. There is, however, a new project being initiated that could turn this situation around (see page 28).
Photo: Pesticide Action Network UK, Ethiopia
BACK TO CONTENTS © | Page 23 Africa
TANZANIA with plans to significantly expand its land area and farmer numbers over the In Tanzania, an impressive 9.2 percent coming years. of the country’s overall cotton production is organic, which is the second highest UGANDA rate globally (after Kyrgyzstan). This figure is expected to grow further in the Gulu Agricultural Development Company coming years, with both of the countries’ (GADC), which accounts for all of organic cotton producer groups, bioRe Uganda’s organic cotton production, Meatu and BioSustain, expanding their saw an additional 2,319 farmers production. become certified in 2016/17, resulting in a 155 percent increase in production, bioRe Meatu has over 1,000 ha currently from 300 to 765 MT fiber. This follows in conversion to organic. The group a recent development project that buys cotton from farmers based on included agricultural training for farmers. floor prices set by the government every 2017 saw the start of a 3-year support season, with a 15% premium added program, which aims to strengthen based on the average price of the last village communities, provide financial five years. training, and establish self-organized support groups. BioSustain is collaborating with the C&A Foundation and Cotton House Africa,
This year’s crop has confirmed the good performance of the newly introduced seeds with all organic farmers registered with bioRe Tanzania Ltd. The higher yields as well as the good fiber quality “ (28mm) are benefitting both the farmers and the industry alike. It is a great success of the team of bioRe Tanzania Ltd. that the efforts of more than twenty years of promoting organic practices are now materializing in improved livelihoods of farmers. Christa Suter Managing Director,
bioRe Foundation Photo: Top and bottom left: bioRe, Tanzania; Bottom right: C&A Foundation, Tanzania
BACK TO CONTENTS © | Page 24 Q&A with Prama Bhardwaj
in manufacturing facilities in some the West. Similarly, brands and retailers countries – notably Kenya and Ethiopia. in the West would be wise to consider Prama Bhardwaj new supply lines from Africa where CEO and Founder, Mantis World | However there is so much more to transparency is readily available and Chair of Textile Exchange’s Pan-Africa do to increase yields, provide support lessons can be learned from other textile for farmers and to create markets for Sourcing Working Group producing regions. The availability of the cotton. In some countries, there raw material including organic cotton are many multi sector actors who already exists – I hope in the medium are working collectively in the region other regions where intensive farming of term we will see the development and Why Africa? from NGOs, brands and retailers, conventional cotton has been the norm. growth of a high quality supply chain. Q Government agencies, producers In 2015 I was chairing a breakout At Mantis World we have always and suppliers. This is the sort of Through multi stakeholder discussion, session on Africa at the OCRT in sourced from Tanzania since we started collaboration needed to bring about I believe Governments will hear a loud Hamburg. There was a strong desire 18 years ago. Not just the raw material, meaningful and sustainable long term and clear message of what is needed from brands and retailers to explore but finished garments and we have now growth across the region. at the policy and implementation level to sourcing from Africa and from farming switched all our Tanzanian production really propel growth. The supply chain groups who needed markets for their of garments to organic cotton certified Where next? needs to be developed so that much organic cotton, but no one really knew to GOTS and OCS standards. So Q needed value addition is kept within how to connect and where to go. As a the region, bringing with it technology, we know that it is possible albeit not Sub sahara Africa is diverse and young result the Pan Africa Sourcing Working employment and development. The without challenges and hope to act as – the average age is 18 compared with Group was created to map, connect work Mantis World is doing with vertically an example and source for other brands the average age in Europe of 40. So and grow sourcing of organic cotton and integrated factory Sunflag Tanzania and retailers. many of tomorrow’s consumers and sourcing in Africa. The interest in the keeps the whole value chain in one innovators will be African. I hope to see work of the Group demonstrates clear How Far have we come as country in Africa and so we know that consolidation and growth of trade within signals for growth and understanding of Q an industry? it is possible. What will be needed is the region as African consumers will this sector. more investment along with a favourable Interest in the region has never been need supply of textiles, and a growing stronger. At Mantis World, we have policy climate to really grow the sector Sub-Sahara Africa affords several number will want to move away from more customers than ever asking for and make it more commercially viable. benefits for sourcing organic cotton. buying the fast fashion castoffs from “made in Africa” garments. We are Many countries have banned seeing huge growth of organic farmers GMO cotton, and because of the in Tanzania and Uganda, the regional small number of actors in the field, OCRT bringing together actors in transparency and integrity are assured. West Africa and an exciting project There is huge potential for poverty of in conversion cotton in Ethiopia. reduction without the damaging There has also been a dramatic rise environmental impact we have seen in Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 25 Africa
What Textile Exchange is doing
We are excited and eager to partner with Textile Exchange in growing the organic cotton sector in Burkina Faso and the region. Connecting Regional Organic Cotton Round Table | Burkina Faso to different markets, thousands of organic cotton producers, September 28, 2018 “ more than half of whom are women, for inclusive and sustainable Textile Exchange is delighted to be interviews that were carried out for the development are our common goals. collaborating with Catholic Relief MOSP by Change Agency. Boubacar Kamissokho Services (CRS) on a series of organic Chief of Party, cotton focused activities in West Held during the Salon International du CRS RECOLTE Project Burkina Faso Africa. These include the launch of a Coton et du Textile (SICOT, 27-28th new Regional Organic Cotton Round September), the Regional OCRT is Table (OCRT) in Koudougou on 28th part of four days of events focused on Organic and Fairtrade Cotton Coalition West Africa September 2018, a Market Opportunity organic and fair trade cotton in West Scoping Project (MOSP), and a Africa, including a workshop of the Faso, Senegal and Benin together documentary-style video. The agenda Organic and Fairtrade Cotton Coalition with Aproca, ecos and FiBL and in for the Regional OCRT will be framed West Africa on 26th September, and a partnership with Fairtrade International around the results of the research field trip on 29th September. and Textile Exchange. The aim of this initiative is to establish and maintain The Organic and Fairtrade Cotton market access for tens of thousands Coalition West Africa was launched of small farmer families in West Africa Pan-Africa Sourcing Working Group in December 2017 by six producer producing organic-fairtrade cotton and organizations from Mali, Burkina other organic crops. Textile Exchange’s Pan-Africa Sourcing Virtual meetings are held quarterly, with Working Group was initiated at the occasional in-person meetings, usually 2016 Organic Cotton Round Table in held during the annual Global OCRT. Salon International du Coton et du Textile Hamburg, when it was proposed that The ultimate objective of the group is a group be established to work on the to develop and support the market The Salon International du Coton et increase international trade by creating various priorities that had been identified for preferred/more sustainable cotton du Textile (SICOT) aims to expose and linkages between cotton companies, for expanding organic cotton production produced in Africa. The current focus of promote Burkina cotton as an industry the National Cotton Producers Union of in Africa and better connecting to the group is to map the African cotton for capital investment into cotton Burkina (UNPCB), and buyers from all supply networks. The group is chaired and sustainability sector by building processing. It will be an opportunity to over the world. by Prama Bhardwaj, CEO of Mantis a stakeholder map and a supplier World, and currently has 23 members. directory. If you’d like to find out more about Textile Exchange’s Pan-Africa Sourcing Working Group or Regional OCRT, please contact [email protected].
BACK TO CONTENTS © | Page 26 C&A Foundation’s organic cotton program, Tanzania
2017 marked the beginning of C&A that the farmers have access to seeds Foundation’s organic cotton program in and bio-pesticides. Tanzania. The program, implemented by GIZ, currently trains over 5,000 cotton These companies have been leaders in farmers on organic cotton cultivation Tanzania’s sustainable cotton movement practices. Two progressive cotton and, through their support, it is expected companies – Alliance and BioSustain – that, in its first year, the program will yield are facilitating the training and ensuring 1,200 MT in-conversion cotton lint.
Photo: Pesticide Action Network UK, Ethiopia
Pesticide Action Network supports 200 cotton farmers in Ethiopia to achieve organic certification
Since 2013, with financial support certification. By learning to farm from TRAID, Pesticide Action Network sustainably, these farmers are not only (PAN) has been providing support in the protecting their health and that of the form of finance, technical assistance planet but are also achieving yields and market linkages to over 2,000 over 100 percent higher than untrained smallholder cotton farmers in southern farmers in the same area. Ethiopia. Organic cotton production requires confident, well-trained farmers As of early 2018, there is a total of with crop and pest management and 2,883 smallholder farmers involved in problem-solving skills. the project, with even more expected to join over the coming year. There is The training offered by PAN through potential, therefore, that this region’s its Farmer Field Schools demonstrates production of organic cotton could grow the benefits of good crop husbandry, significantly, though it is important to Integrated Pest Management (IPM), and note that the decision on whether or not soil improvement without the use of to certify to organic is entirely up to the expensive and hazardous pesticides. individual farmer, so the extent of this growth in not yet certain. In December 2017, 200 of the farmers in this project gained organic cotton Photo: Top & bottom left: C&A Foundation, Tanzania; Bottom right - Pesticide Action Network UK, Ethiopia
BACK TO CONTENTS © | Page 27 Pesticide plants for organic cotton in Mali The first organic cotton gin in West Africa
The Royal Botanic Gardens at Kew in current use of pesticide plant species. It On February 15th, 2018, the ground- Growers Of Burkina) to resolve the UK is carrying out a Pesticide Plants will not only identify those pesticide plant breaking ceremony took place for the bottlenecks related to delayed ginning Project for the production of organic species and their active compounds, first organic cotton gin in West Africa, of organic cotton. This, in turn, will cotton in Mali, funded by the Darwin but help cultivate them, optimize located in Koudougou. The gin is a encourage growth in organic cotton Initiative and TRAID. The project is their use and promote awareness of collaboration between the USDA-funded production and international trade. working with local farmers and national biodiversity and pesticide plants among RECOLTE project, CRS, UNPCB, and Currently, organic cotton is ginned six institutions in-country to understand the policy makers and local people. SOFITEX. It is hoped that the gin will be months later than conventional cotton, up and running by early 2019. which delays the entire production chain and payment to producers and, in The installation of the plant will enable turn, discourages timely organic cotton UNPCB (National Union Of Cotton production and participation.
Photos: Top & bottom left - Textile Exchange, Burkina Faso; Right - RECOLTE Project/ Catholic Relief Services, Burkina Faso
BACK TO CONTENTS © | Page 28 BENIN
Textile Exchange Stakeholder directory Non-profit
Who’s doing what In Africa? Sourcing Coalition for Organic-Fairtrade This map highlights some of the key organizations working to Cotton from West Africa (CCBE) support organic cotton in this region. Partnerships
ETHIOPIA Cotton House Africa MALI Pesticide Action (CHA) Non-profit FENABE - National Network Federation of Organic Non-profit and Fairtrade Producers (previously Pesticide Action MoBioM) Network UK Producer Organization Non-profit
OBEPAB BURKINA FASO Non-profit
Catholic Relief UGANDA Services/RECOLTE SENEGAL (Revenue through Gulu Agricultural TANZANIA Cotton Livelihoods, YAKAAR NIANI WULLI Development Trade, and Equity) Company bioRe Tanzania Producer Organization Non-profit Service Company Non-profit
SODEFITEX UNPCB Service Company Elmertex Producer Organization Service Company BioSustain Service Company
C&A Foundation Partnerships
Supply Chain Intervention: Standards/Chain of Custody Market making GIZ Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Partnerships Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 29 China
Photo: CottonConnect, China
BACK TO CONTENTS © | Page 30 China REGIONAL PRODUCTION
XINJIANG
824 11,846 52% GANSU Organic Farmers Organic Certified Fiber (MT) 20,473 MT Land (ha) Year-On-Year Growth 91+9S 92,048 MT +91S 22,521 5,108 19% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
5-YEAR PRODUCTION TREND
25,000 SHANXI
20,000 Seed HUBEI 15,000 Pilot China 0+100+S 10,000 1 MT Fiber Production (MT) 5,000 2+98S 0 2012-13 2013-14 2014-15 2015-16 2016-17
BACK TO CONTENTS © | Page 31 China China
There are three main provinces In China, to sell a product as organic, producing organic cotton in China - brands and retailers need to be certified 824 Xinjiang, Gansu and Hubei - though the to China-NOP (GOTS and OCS Organic Farmers majority of production takes place in cannot be labeled). As a result, local Xinjiang. There was a significant increase brands, particularly SMEs, have also of 52 percent in the country’s production begun to adopt the China-NOP for 11,846 Organic Certified of organic cotton in 2016/17, particularly the domestic market. The China NOP Land (ha) of cotton certified to China’s National standard is much more strict in terms of Organic Program (NOP). This took requirements, for instance allowing only China’s total production to 22,521 MT, natural dyes and requiring the cotton 22,521 Organic Cotton 19 percent of the global total. used in the product to be 100 percent Fiber (MT) organic. This increase in production is, for the most part, fueled not by the textile In terms of organic cotton pricing, the 5,108 industry but by demand from the organic gap between China and India seems to Organic In-Conversion Land (ha) dairy industry, which uses organic cotton have narrowed compared to last year, seed as feed for dairy cattle, particularly though is still significant. A number of in the Xinjiang region. farms are focusing on growing ELS 52% organic cotton as a way to combat the Fiber Year-On-Year China has a significant area of land in price differential between China and conversion to organic, totaling 5,108 ha India. in 2016/17, which will reach certification 19% over the next couple of years, indicating Suppliers in China have noted that Share of Global Organic that the current growth trend in China’s brands are beginning to ask more Cotton Production organic cotton production looks set to frequently about sourcing organic continue. cotton from within China, but quantity 0.5% remains an issue. Demand aggregation Organic Share of National and clustering is something that Textile Cotton Production Exchange’s China Working Group will be looking at as a potential solution.
BACK TO CONTENTS © | Page 32 China
What Texile Exchange is doing
China Working Group
Textile Exchange’s China Working Group conventional to preferred fibers and was formed following the Regional materials at scale, resulting in substantial Strategy Meeting for China held during reductions of environmental impacts. the 2017 Organic Cotton Round Table in Washington D.C. At this meeting, Key focus areas for the group include: many questions arose and the need for • Education and training to engage a region-specific working group became consumers, the market place, apparent. suppliers and manufacturers.
Though Textile Exchange already has • Harnessing the momentum of the fiber-specific working groups, it was SDGs, which China is leading on. decided that a cross-cutting, multi-fiber working group was needed for China. • Supplier mapping to build networks This was due to the country being the and supporting suppliers in the biggest producer and user of many of adoption of preferred fibers and the world’s major fibers and materials, materials. and also having a large and growing fashion and apparel market. • Transparency and traceability to ensure integrity. Though relatively new, the China Working Group already includes • Clarification on regulations to members from brands, suppliers, address misconceptions. manufacturers and industry If you’d like to find out more about Textile organizations. The aim is to create a Exchange’s China Working Group, framework, network and business case please contact Evonne Tan: Evonne@ on which China has the knowledge, TextileExchange.org confidence and supply chain connections to collectively move from
BACK TO CONTENTS © | Page 33 Q&A with Veronica Yow
this need. Organic premium again What iInspires and excites is based on production. Models like Q you to keep going? Veronica Yow carbon insetting helps companies to invest in practices that reduce carbon Manager, Sustainable Markets & Seeing the difference in the soil when emissions within their supply chain while Finance, Rare compost is applied vs. commercial supporting farmers to adopt carbon organic fertilizer vs. chemical. The color, farming practices. This helps companies the texture, the moisture in the soil and to meet both sustainable sourcing and when you smell the soil, you smell life. and promoting organic and climate- climate goals. What was great about And especially when farmers see and 2017? smart practices that improve the soil Q understand this. such as compost and improved residue Meeting Qi Suqin for the first time management. during the brands site visit that we organized. Ms. Qi is a farmer and also We also begun a new and exciting the Campaign Manager for Rare’s “Let’s partnership with Shokay, which Farm Organic” project which is funded specializes in yak wool to develop a by C&A Foundation. She helps to Yak Cotton blend from in transition promote organic practices among her cotton from our partner farms to offer peers at our partner farm. I’ve known of more varieties of organic/in transition Ms.Qi for a couple of months then but products, especially for smaller brands have not met her yet. When I saw her, which normally only source fabric. More she immediately embraced me like an information is available here. old friend even though we’ve never met. Through that site visit, we secured a What was the most 3-year purchase agreement from a local important lesson you’ve Chinese brand for that farm. Although Q learnt since starting your the quantity isn’t big, it’s a good work in organic cotton? beginning to get more brands to support Feed the soil and let the soil feed the organic/in transition particularly in China. plants. Organic certification serves a What are you working on certain function but is not a true proxy Q right now? for environmental outcomes. We need to align intention and incentives to actively We are supporting farmers to transition support farmers adopt practices that Photos: Rare, China Extra Long Staple cotton towards will restore soil health and there needs organic cultivation in Xinjiang, China to be a financial mechanism that meets Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 34 China
C&A Foundation organic cotton program in China CottonConnect’s activities in China
C&A Foundation supports organic cultivation yielding 4 MT lint certified CottonConnect works closely with introduced them to new technologies, cotton cultivation in China in and 186 MT lint in conversion. The brands on interventions aimed at microfinance and credit options. It is a collaboration with two key partners – foundation’s efforts have motivated the improving productivity and reducing first step towards long term resilience CottonConnect and Rare. Currently C&A commitment of supply chain actors, with environmental impacts in cotton for communities, providing a platform Foundation’s partners support farmers additional investment support coming production in China, through REEL for access to finance and community with organic cotton cultivation in three in from Huiton – a spinning mill based Cotton, BCI and organic programs. organization. The Rights and Life Skills provinces – Hubei, Shandong and in Shandong, and Organic Cotton CottonConnect implements projects training Women in Cotton communities Xinjiang. Across these three regions 347 Awareness – a local Chinese brand to in the Xinjiang, Hebei and Shandong are trained and empowered with the Hectare area is under organic cotton the farmers in these programs. regions. skills to take action in their lives, and are respected. Women account for 45 percent of the total employed population in China. Together with C&A Foundation, Fewer female farmers than male farmers CottonConnect provides technical and attend CottonConnect technical training, financial support to farmers in China, though they are major workforce in enabling them to convert to organic and cotton farms. CottonConnect therefore become certified. introduced the Women in Cotton program into China, consisting of To find out more about CottonConnect’s Farmer Business School and Rights and activities in China and other cotton Life Skills. Farmers Business School growing regions visit their website: encourages farmers to see their farm cottonconnect.org as a business and CottonConnect has
Photo: CottonConnect, China Photos: CottonConnect, China
BACK TO CONTENTS © | Page 35 China
Rare’s extra-long-staple Academy of Agricultural Sciences, Luthai organic cotton now practices biological pest control, introducing predatory mites, spraying BT Since 2015, Rare, as part of a program bio-pesticides, and planting corn as a funded by C&A Foundation, has trap-crop. Vertically integrated from farm leveraged its renowned community to manufacturing, Luthai has transitioned behavior-change approach to help 207 of its 6,667 hectares of land to establish an organic cotton presence organic ELS cotton this past year. in China. In 2018, Rare partnered with two large farms in the Xinjiang region to The second farming partner, Jintian begin producing organic Extra-Long- Farm, is one of the few farms in Staple (ELS) cotton. ELS cotton is the Xinjiang to practice crop rotation prominent textile for luxury products. Its (alternating between rice and cotton high staple-length allows for a finer yarn- every three years). Established in 2004 count, ensuring a more premium feel, as a family-business, Jintian adopted and greater longevity. China’s particular Rare’s community-based approach to variety of ELS (grown exclusively engage the now 200+ Jintian farmers in Xinjiang) is comparable with the in adopting organic farming practices. prestigious Peruvian Pima, Indian Suvin, Jintian transitioned 58 of its 1,467 and Egyptian Giza cotton varieties. hectares of lands to organic ELS cotton this past year. Jintian is also located on The first farming partner, Luthai Farm, the path of migratory birds. was the first Better-Cotton-Initiative (BCI) farm in China, and remains the nation’s Both farms remain deeply excited largest (conventional) ELS cotton about the prospects of their premium, grower. In collaboration with the Fujian environmentally conscious fiber.
Photos: Rare, China
BACK TO CONTENTS © | Page 36 Stakeholder directory
Who’s doing what in China?
This map highlights some of the key organizations working to support organic cotton in this region.
CHINA
Textile Exchange Non-profit
C&A Foundation Non-profit
Rare Non-profit
CottonConnect Social Enterprise
Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 37 EMENA & Central Asia
Photo: Cotonea, Kyrgyzstan
BACK TO CONTENTS © | Page 38 EMENA & Central Asia REGIONAL PRODUCTION
GREECE TURKEY KYRGYZSTAN
850 MT 7,741 MT 8,019 MT 2,614 17,407 7% Organic Farmers Organic Certified Fiber (MT) Growth 3+97S 31+69S 32+68S Land (ha) Over 2015/16
24,756 3,887 21% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
5-YEAR PRODUCTION TRENDS
9,000 8,000 Egypt EGYPT TAJIKISTAN 7,000 6,000 Greece 5,000 Israel 1,742 MT 6,405 MT
4,000 Kyrgyzstan 3,000 Fiber Production (MT) Tajikistan 7+93S 23+77S 2,000 Turkey 1,000 Please note that, since publication of the 2017 OCMR, it has come to our attention that the data reported for Turkey, Kyrgyzstan, and Tajikistan’s 2015/16 production was incorrect. Additionally, it has 0 since been discovered that Greece also produces some organic certified seed cotton, though it is 2012-13 2013-14 2014-15 2015-16 2016-17 not separated at the gin and is therefore not currently sold as organic cotton fiber on the market.
BACK TO CONTENTS © | Page 39 Kyrgyzstan Tajikistan Greece Turkey EMENA & Central Asia Egypt
Overall, this region experienced a seven fiber on the market. For manufacturing percent rise in organic cotton production organic cotton yarn, Greece currently 360 no data 1,009 1,049 196 in 2016/17. Though Central Asia (in imports organic fiber from Turkey. Organic Farmers this case Kyrgyzstan and Tajikistan) experienced a marginal decline in According to the Greek Ministry of production following the considerable Rural Development and Food, there 542 1,153 6,929 4,920 3,863 were 1,153 ha of land growing organic Organic Certified spikes seen over the previous two years, Land (ha) Egypt and Turkey both saw increases. cotton in 2016/17. Total production is Additionally, it came to our attention that estimated at 2,500 MT seed cotton, Greece is also producing organic cotton which would be equivalent to around 1,742 850 8,019 6,405 7,741 850 MT fiber. Organic Cotton (read more opposite), which further Fiber (MT) bumped up volumes. Greece’s most important area for cotton production, and where the organic EGYPT no data no data 991 175 2,721 cotton is also grown, is Larissa and Organic In-Conversion In Egypt, there is exciting news from Karditsa in the center of the country. Land (ha) FILMAR SpA’s Cottonforlife project, Organic cotton production in Greece which recently announced that it is is subsidized by the European Union 70% 39% 0.5% 3.2% 2.2% being scaled up to a National Project at approximately 500€/ha. The Cotton Fiber Year-On-Year through the United Nations Industrial Committee, organized by the Greek Development Organization (read more Ministry, is trying to include organic on page 44). cotton production as part of the Greek 1.5% 0.7% 6.8% 5.4% 6.6% Share of Global Organic There was also good news from Cotton Trademark strategy, but this is still Cotton Production SEKEM, which saw its total organic in development. cotton production more than double. 4.6% 0.4% 66.8% 7.5% 1.1% GREECE Organic Share of National Cotton Production It came to our attention this year that there is cotton being grown organically in Greece, though it is not separated at the gin due to the quantities rarely reaching processing minimums and is, therefore, not currently sold as organic cotton
BACK TO CONTENTS © | Page 40 EMENA & Central Asia
KYRGYZSTAN TAJIKISTAN TURKEY 2017/18, as some of the 2,721 ha of land currently in conversion to organic Last year, Kyrgyzstan experienced Tajikistan, which last year saw a Between 1995 and 2016 , Turkey’s reaches certification. significant growth. This stabilized in considerable spike in production, overall (conventional) cotton cultivation 2016/17; however, another 991 ha is experienced a marginal decline in area reduced dramatically from 757,000 This trend is also likely to impact the in conversion to organic, suggesting 2016/17. A large portion of Tajikistan’s ha to 416,000 ha, despite demand for import/export markets, with a decrease further growth in the coming years. This production stems from the DoCotton cotton having increased. However, 2017 in cotton imports and an increase in trend is being fueled largely by projects Group, which came on board last year marked a change in this trend, with an maize imports. At present, approximately implemented by Turkish mills. Almost and produce organic cotton for Turkish increase in cotton production of nine half of Turkey’s 1.5 million MT annual all of this production is exported to mills. Bio-Kishovarz, the longstanding percent and growth also anticipated for cotton consumption is imported. Turkey to be processed after ginning, Fairtrade producer group located in 2018. Turkey retains its unique status of though the organic Fairtrade cotton Khujand, where production is carried being GMO-free and, as GM cotton produced by BioServices, the initial out on smallholder - or “Dekhkan” One of the main reasons for this is that production spreads rapidly across the pioneer of organic cotton in Kyrgyzstan – family farms, remains very active. Turkey’s Ministry of Food, Agriculture and globe (now accounting for around 77 and previously backed by HELVETAS, Though experiencing a slight decline in Livestock changed its support policy percent of global cotton cultivation), the goes mainly to mills in Eastern Europe. production this year, it has another 175 against maize and in favor of cotton. major problems experienced with GM BioServices remains very active and ha in conversion to organic. The support premium paid per kg of cotton in some countries indicate how experienced a 21 percent growth in seed cotton was 42 kurus in 2011, important Turkey’s GMO-free status production of organic cotton in 2016/17. rising gradually each year to 75 kurus in 2016. In the same period of time, the is for the global cotton industry (both premium paid per kg of maize remained conventional and organic). In recent consistent at 4 kurus, until 2016 when years, the Turkish National Cotton it was halved to 2 kurus. Turkish farmers Council has been working to create an are naturally very responsive to market identity for “GMO-Free Turkish Cotton.” fluctuations and so this policy change is leading to growth in domestic cotton production; a trend that is seen for both conventional and organic cotton.
In 2016/17, 7,741 tons (1.1 percent) of Turkey’s overall cotton production was organic, representing growth for the second year running. Though only 2 percent in 2016/17, a sharp Photo: HELVETAS Swiss Intercooperation, Kyrgyzstan rise is expected in this growth trend
BACK TO CONTENTS © | Page 41 EMENA & Central Asia WAPRO: The integration of water stewardship into organic cotton projects What Textile Exchange is doing Water consumption for irrigation cotton sector with water stewardship. purposes has been regarded as weak point of cotton even under organic The first phase of WAPRO ran from cotton farming conditions. Doubtless, 2015 till 2018 and was implemented Second Regional Organic Cotton Round Table, Izmir organic cotton production may bear in six-subprojects in the four countries potential water related benefits created of India, Pakistan, Kyrgyzstan and Tajikistan. Organic cotton farmers in Textile Exchange first introduced the President of Demeter International, by less water demand within the overall Kyrgyzstan and Tajikistan were integrated concept of the Regional Organic Cotton join us as keynote speaker, alongside crop rotation, higher soil water retention into the water stewardship work. Round Table (OCRT) in Izmir in 2017. over 100 representatives from brands, capacities due to higher organic matter Met with great interest, a second producer groups, NGOs, government content and particularly qualitative The first WAPRO phase generated a Regional OCRT in Izmir was held on agencies and industry organizations, advantages due to non-contamination wealth of knowledge regarding water 10th May 2018 during the 9th EKOLOJI including GOTS, H&M, HUGO BOSS, of run-off water. Nevertheless, there saving measures and technologies on Trade Show, hosted and sponsored IFOAM – Organics International, Nudie is room for improvement by adopting field level as well as valuable lessons once again by our key collaboration Jeans, and Stella McCartney. You can modern approaches of water on how to moderate and implement partner, IZFAS. We were honored to read their inspiring insights in the 2018 stewardship thereby addressing also water stewardship processes and have Helmy Abouleish, CEO of the Highlights Report. issues of water governance and water communicate them on relevant policy SEKEM Initiative and recently elected distribution via collective action of cotton levels. farmers. The second phase of WAPRO is now The WAPRO project’s name is derived in its final planning stages. Aimed to run from an acronym of WAter and until end 2021 with an overall budget PROductivity. It is a multi-stakeholder of 15 Million US$ it will be comprised initiative funded by the Swiss Agency for of ten subprojects, two of which being Development and Cooperation (SDC), fully organic and another two (Kyrgyzstan with HELVETAS Swiss Intercooperation and Tajikistan) having a majority of the as consortium leader, and is an attempt farmers as organic cotton farmers. to combine value chains in the rice and
Photo: HELVETAS Swiss Intercooperation, Kyrgyzstan
BACK TO CONTENTS © | Page 42 Q&A with Aydin Unsal
Aydin Unsal Owner and President of the Board, Egedeniz Textile
Can you tell us a little bit What are you most proud Q about Egedeniz Textile? Q of? Egedeniz was the first certified We recently decided to start measuring organic textile company in Turkey. We and managing our social footprint, have contracted farmers for organic starting from the 2018 crop year. agriculture, and sell organic cotton as fiber, yarn, knitted and woven fabrics, We are also a strong supporter of the and garments to many well-known SDGs, and have a robust CSR agenda brands around the world. that we have been mapped to the SDGs. What were the highlights of Q 2017? Q What does the future hold? In 2017, we developed a Living Wage project with one of our customers for Global organic cotton consumption the workers who are involved in the growth is still at very slow pace, just manufacturing of our products. This like Turkish domestic market. Despite project will continue over the coming this slow growth, we are receiving years. increasingly enquiries from many different countries around the world, We also added 6 large-scale farmers mostly from start-up companies. to our organic project, increasing our We are also developing yarns/fabrics current production by 50 percent. These 3. Shift, 2018, Egedeniz Textile’s Living Wage Project farms will be certified organic from the from recycled materials as demand for 2019 crop year. these grows, including some blends with organic cotton. I believe Turkey has the potential to become a leader for these qualities. Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 43 Cottonforlife partners with UNIDO to scale up organic cotton production in Egypt
Cottonforlife, a private sector initiative of staple Egyptian cotton by improving the FILMAR SpA that has been supporting a economic, social and environmental group of contracted farmers in Egypt to performance of cotton growers and grow long and extra-long staple organic processors and strengthening support cotton for the last three years, recently institutions. The activities will be carried announced that it is being scaled out in coordination with the Cotton up to a National Project through the Egypt Association to protect the purity United Nations Industrial Development of Egyptian cotton and to build new Organization (UNIDO) in response business models with everyone involved to growing consumer demand and in the supply chain, both local and sustainability commitments of brands. international.
Through the national project, UNIDO and Cottonforlife currently cultivates organic FILMAR are working in coordination with cotton on around 120 ha in Damietta, institutional counterparts such as Egypt’s northeastern Egypt, in partnership Ministry of Trade & Industry and Ministry with Sekem. The new partnership with of Agriculture and Land Reclamation, UNIDO will allow these demo plots to be as well as other national stakeholders, rolled out more widely, and the potential to improve transparency, traceability to benchmark practices to international and sustainability in Egyptian cotton standards is also being explored. production and industrial processing. The aim is to promote organic and non-contaminated long and extra-long
Photo: CottonForLife/ UNIDO, Egypt Photos: CottonForLife/ UNIDO, Egypt
BACK TO CONTENTS © | Page 44 Stakeholder directory KYRGYZSTAN Who’s doing what in EMENA & Central Asia? Bio Services This map highlights some of the key organizations working to Service Company support organic cotton in this region.
HELVETAS Swiss Intercoorporation Non-profit TURKEY
Textile Exchange Cotonea / Elmertex Non-profit Partnerships
IZFAS Partnerships TAJIKISTAN
GIZ EGYPT Non-profit
SEKEM Service Company HELVETAS Swiss Intercoorporation
Non-profit
Cotton for Life Partnerships Bio-Kishovarz cooperative Producer Organization
Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 45 Latin America & the Caribbean
Photo: Tatiana Cardeal for C&A Foundation, Brazil
BACK TO CONTENTS © | Page 46 Latin America & the Caribbean HAITI REGIONAL PRODUCTION
Pilot Project
100+0S BRAZIL 474 1,226 16% Organic Farmers Organic Certified Fiber (MT) Year-On- Land (ha) Year Growth 1143 MT +89S
381 460 0.3% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
PERU
5-YEAR PRODUCTION TRENDS 338 MT 7,000
6,000 Argentina 89+11S ARGENTINA 5,000 Brazil
4,000 Peru 0.4 MT 3,000 Paraguay
Fiber Production (MT) 2,000 Nicaragua 1+99S 1,000 Colombia
0 2012-13 2013-14 2014-15 2015-16 2016-17
BACK TO CONTENTS © | Page 47 Argentina Brazil
Latin America & the Caribbean Peru
Organic cotton production in Latin last year didn’t help the situation. The America is characterized by smallholder lack of effective governmental programs 5 308 161 family farms organized in groups, usually or investments from the textile industry in Organic Farmers supported by NGOs or traders. The the organic sector was again sorely felt. production is rainfed and therefore very In spite of this, the region still dependent on the climate situation. 100 496 630 experienced a 16 percent growth in Organic Certified Since 2013, the region has been production of organic cotton overall, with Land (ha) affected by the natural phenomenon production taking place predominantly in “el Niño,” which resulted in several Perú and Brazil, and a small amount also years of severe drought in producing 0.4 43 338 in Argentina. Momentum in the region Organic Cotton regions. Peaking in 2016, the drought Fiber (MT) is building, with a growing number significantly affected production of of strategic events and movements organic cotton. underway related to organic and more no data 155 305 2017 saw the beginning of a transition sustainable cotton, and a number of Organic In-Conversion back to a more typical climate, but institutes associated to big retailers Land (ha) farmers were still very affected by losses already having expressed agendas to from previous years. Lack of investment, develop more sustainable supply chains. no data 155% 21% a shortage in supply of good quality The potential for organic cotton in this Fiber Year-On-Year seed, and a great deal of uncertainty region is certainly looking bright. meant that the strong growth anticipated for this region has not yet been realized. <0.01% 0.04% 0.3% Economic instability in countries such as Share of Global Organic Argentina, Colombia, and Brazil over the Cotton Production
<0.01% <0.01% 1.5% Organic Share of National Cotton Production
BACK TO CONTENTS © | Page 48 Latin America & the Caribbean
What Textile Exchange is doing ARGENTINA of ESPLAR in Ceará and EMATER in Paraíba. This resulted in 43 MT organic For many years, since the end of a cotton fiber cultivated on 220 ha (part Organic Cotton Round Table Regional Strategy: project known as “Another South of a total production area of 496 ha). Latin America Market,” there was no significant Another 155 ha is growing cotton in organic cotton production in Argentina. transition to organic. 2017 saw the At the 2017 Organic Cotton Round importance of creating a Platform to Notwithstanding the unfavorable political launch of the first Brazilian Eco Fashion Table (OCRT), held in Washington improve awareness of the potential of and economic situation in the country, Week, with tremendous coverage in the D.C. on October 12, Textile Exchange organic cotton as a sustainable value a project began in the Chaco province media. hosted a Regional Strategy Meeting for chain, and to promote and divulge and 2017 saw the first biodynamic Latin America, with participation from related projects, partnerships and certified organic cotton produced in PERU stakeholders including C&A Institute, business opportunities in the region. the country. The company Stay True In Perú, Bergman Rivera/Ecotton Natural Cotton Colors, Timberland, Textile Exchange, with its growing developed a beautiful project in the Smallholder Farmers Alliance Haiti, experience in catalyzing and developing native community QOM and five farmers remains responsible for the country’s production of organic cotton. Working Bergman Rivera/Ecotton. VEJA/VERT regional strategies for organic cotton, of the project produced the first 0.4 MT Shoes, SOCiLA and COSA. is keen to progress this platform, but of organic cotton fiber from 2.5 ha of with producer groups in different regions of the country, they assisted and bought regional partners and funders are land (part of a total production area of The participants of this important needed in order to achieve this. 100 ha). The project is growing and it is organic cotton from 161 farmers who, in meeting expressed the necessity to estimated that production will reach 10 2016/17, produced a combined total of increase organic cotton production Join us for the 2018 OCRT in Milan on MT in 2018. 338 MT fiber on 311 ha (part of a total and processing in Latin America October 22 to continue the discussions production area of 630 ha). Another and the Caribbean’s textile industry. on creating a regional strategy for Latin BRAZIL 305 ha of cotton growing land area is in Also discussed was the fundamental America and the Caribbean. transition to organic. In Brazil, drought in the northeast region lingered on for a fifth year, but at last gave some signs of ending. There was a significant increase in the number or organic cotton farmers in 2016/17 reaching 308 (up from 232 the previous year), thanks in particular to the work
BACK TO CONTENTS © | Page 49 Q&A with Orlando Rivera
Orlando Rivera Managing Director, Bergman Rivera
What are the main changes taught them. Having crops with better Q you have seen in the 30 yields each year and also working with years that Bergman Rivera rotation crops that are beneficial for soil has been producing and health and translates into more income promoting organic textiles? for them. One of our biggest challenges is not having a market for cotton seed, We have noticed that the final consumer which represents 2/3 of the cotton is getting more interested in the supply branch weight. chain and traceability behind the products they purchase. Awareness What does the future hold in fair social practices, sustainability Q for Bergman Rivera? and transparency have become an important ally in the growth of organic Our main focus is to expand our organic cotton. I think that we have educated cotton project as we are experiencing our consumers and in these times when a high increase in demand. In order information is open to everyone our to achieve this, we need to develop a open doors policy is more valued. long term relationship with new groups of farmers that are willing to work with What achievements are organic cotton. Q you most proud of, and have there been any big Growing cotton, as you know, is very challenges? challenging due to pricing and labor demand in comparison to other crops. Photos: Bergman Rivera, Peru We have to comment about our most Therefore growing our organic cotton valued partners: the farmers. They have areas is a constant goal that we have. learnt to appreciate the knowledge We also believe in strong partnerships that our technical team gives them and with brands which is crucial to achieve Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases applied in their farms everything we’ve this vision and plan for the future. an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 50 C&A Institute, Brazil Potential for Organic Cotton in Haiti
C&A Foundation has been working Ceará province. Starting in 2018, the Another promising initiative is launching In 2017, the project ran a field-study to with ESPLAR and EMBRAPA Cotton foundation will also support DIACONIA in Haiti, where the Smallholder Farmers test the adaptation of different cotton to expand production of Mocó organic in engaging 750 smallholder farmers Alliance, in partnership with Timberland, varieties, including some organic cotton supply (multi-annual cotton on organic cotton cultivation across is re-introducing cotton production to cottonseed from Brazil and also varieties variety, with long fiber that is more the states of Alagoas, Ceará, Paraíba, the country after 30 years. The goal is to from India and the USA. The study’s resistant to drought). This initiative Pernambuco, Piauí, Rio Grande do chart new territory for sustainable cotton findings will inform the first commercial currently engages 300 farmers in Norte and Sergipe. production by creating a business model planting by up to 500 farmers in 2018. that also integrates organic cotton with combating climate change, improving The project is also exploring the use of food security and empowering women. blockchain technology to integrate data, traceability, transparency and efficiency into a smallholder supply chain in Haiti.
Photos: Left - ESPLAR/ C&A Foundation, Brazil; Right - Tatiana Cardeal for C&A Foundation, Brazil
The FAO’s South-South Cooperation
The FAO was also active in the region in 2017 with its Strengthening the Cotton Sector through South-South Cooperation program, which generated a partnership with Brazilian research institute EMBRAPA and resources such as a publication about Brazilian experience in organic colored cotton production.
Photo: ESPLAR/ C&A Foundation, Brazil Photo: Tatiana Cardeal for C&A Foundation, Brazil
BACK TO CONTENTS © | Page 51 Stakeholder directory
Who’s doing what in Latin America & The Caribbean HAITI
Smallholder Farmers This map highlights some of the key organizations working to Alliance support organic cotton in this region. Social Enterprise
BRAZIL COLOMBIA Textile Exchange ESPLAR SOCiLA Non-profit Non-profit Non-profit
FAO (South-South EMBRAPA Algodão Cooperation project) Research Institute Non-profit PERU Instituto Lojas Renner Ecotton C&A Institute Non-profit Producer Organization Non-profit
Sustainable Fashion Lab Partnerships ARGENTINA
Stay True Social Enterprise
Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 52 South & Southeast Asia
Photo: C&A Foundation, India
BACK TO CONTENTS © | Page 53 South & Southeast Asia REGIONAL PRODUCTION
PAKISTAN MYANMAR
In Pilot Conversion Project 192,128 387,596 1.8% Organic Farmers Organic Certified Fiber (MT) Growth 0+100+S 100+0S Land (ha) over 2015/16
59,474 184,462 51% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
5-YEAR PRODUCTION TRENDS
100,000 INDIA
80,000
59,470 MT 60,000 India THAILAND
Thailand 40,000 99+1S
Fiber Production (MT) 4 MT 20,000 1+99S 0 2012-13 2013-14 2014-15 2015-16 2016-17
BACK TO CONTENTS © | Page 54 Pakistan Thailand
South & Southeast Asia India
MADHYA 192,060 2 66 RAJASTHAN PRADESH Organic Farmers
461 MT 27,968 MT 386,464 1,056 76 Organic Certified 1+99+S 47+53+S Land (ha) GUJARAT 59,470 0 4 Organic Cotton Fiber (MT)
8,551 MT 172,180 12,283 no data Organic In-Conversion 14+86+S Land (ha) MAHARASHTRA ODISHA 1% n/a 50% Fiber Year-On-Year 6,735 MT 15,186 MT
51% 0% 0.004% 11+89+S 26+74+S Share of Global Organic Cotton Production KARNATAKA TELANGANA 1.0% 0% 0.4% Organic Share of National 1396 MT +99+S 1173 MT +99+S Cotton Production
BACK TO CONTENTS © | Page 55 INDIA What Textile Exchange is doing
Organic farming in India is certified farmers in India joining organic cultivation under the National Program for Organic systems. However, during this time, Production (NPOP) and, as in other production of organic cotton in some Farm engagement countries where organic cotton is a small areas was replaced by production holder crop, it is carried out with the of other organic crops, as farmers Over the last year, Textile Exchange collecting data directly from 100 percent aid of an Internal Control System (ICS). respond to changes in the market. has continued its push to strengthen its of India’s organic cotton farm projects This allows producer groups to practice Additionally, a small but important portion data collection systems and processes, (82 percent visited in person), as well as group certification, where individual of previously certified farmers have particularly in India, as part of its Data from APEDA and almost all certification certification would be onerous and been demoted back to in-transition Investment Initiative, supported by the bodies. This data is cross-checked costly. status as they resolve contamination C&A Foundation. As a result, we were between the various sources before problems. As a result, India’s organic able to achieve even greater clarity by being reported. In 2016/17, there were 1 million organic cotton production experienced an overall farmers growing food and fiber certified decline during this period, but that trend to NPOP by 28 accredited certification is now stabilizing. The decline between bodies. The total land area certified was 2015/16 and 2016/17 was only 1.2 Global Organic Cotton Round Table 1.44 million ha, with the major crops percent, compared to 20 percent the grown being sugarcane, oil seeds, previous season, and the future looks At the 2018 Organic Cotton Round Southeast Asia, to report out on and cereals, millet, cotton, pulses, medicinal bright as strong growth is forecast over Table (OCRT) in Milan, Textile Exchange discuss progress/challenges with a plants, tea, fruits, vegetables, spices, the next few years. is introducing a new “General Assembly” global audience, with the focus on and coffee. In 2016/17, the total land approach that will provide space for enabling both visibility of all regions and area of all organic cotton-growing ICS Thanks to the efforts of organic producer delegations from each organic cotton cross-learning between. was 386,464 ha, of which it is estimated groups and organizations such as the producing region, including South & that 43-45 percent (168,654 ha) was Organic Cotton Accelerator and the C&A actually planted with organic cotton. Foundation, as well as the continued engagement of brands and retailers at Madhya Pradesh continued its significant the farm and supplier level, huge areas Industry engagement leadership in terms of the amount of land are in conversion to organic. of organic cotton fiber produced, Based on current projections, it is Textile Exchange continues to support meetings, such as those hosted by accounting for 47 percent of India’s estimated that organic cotton production supply chain mapping for a number of OCA, C&A Foundation, brands and total production, followed by Odisha will grow 35–40 percent by 2020. its members and, now with a full time retailers, certification bodies, and the (26 percent), Gujarat (14 percent), and Country Program Manager based in Organic and Fair Cotton Secretariat Maharashtra (11 percent). Bangalore, also actively participates (OFCS) of which we are an active in many more regional events and member. Between 2012/13 and 2016/17, there has been growth in the number of
BACK TO CONTENTS © | Page 56 PAKISTAN
There was no certified production of is also a project by Pakistan’s Rural Climate change is a harsh reality now in India as elsewhere. While organic cotton in Pakistan in 2016/17. Business Development Center (RBDC) everyone is impacted, farmers suffer the most especially in rainfed However, there are over 12,283 ha and Lok Sanjh Foundation that is agricultural scenarios. If we want cotton in the future to be available growing cotton in conversion to organic initiating the organic certification process “ to the industry and not transform into a luxury, we will need assured as part of the C&A Foundation/ WWF for its cotton production this year. Read supply chains that are nurtured, with farmers being taught the skills to project that is due to reach certification more about these initiatives on page 63. adapt. Needless to say concerted efforts to improve seed R&D and in the 2019/20 harvest year. There seed availability, especially for the organic sector, are key. The industry needs to recognize and act upon this gap in a collaborative manner, as it has significant implications for the future. THAILAND Prabha Nagarajan The Green Net Cooperative, first river to grown organic cotton. Thanks Organic Cotton Expert, India introduced in last year’s report and to the organic and fair trade scheme Thailand’s only known organic cotton implemented by Green Net, farmers CottonConnect’s activities in India producer, is part of the Rim Khong receive a good price for their cotton. Organic Agriculture Project. The Green Net recently supported the Together with C&A Foundation, supply chain partners are collaborating Cooperative had a successful year in transition from a third-party certification CottonConnect is promoting to create a robust supply network, in an 2016/17, with record-high yields as a system to a local Participatory Guarantee organic cotton production, training effort to secure a traceable and reliable result of cool weather and plentiful water System (PGS), which works well for cotton farmers in Gujarat, Madhya organic cotton supply for its brands. during the growing season. This led to a these farmers. Existing customers Pradesh, Rajasthan and Maharashtra. A case study exploring the learnings growth in production from 2.8 to 4.2 MT having trust in Green Net’s PGS and CottonConnect also runs sustainable from this pilot will be released soon, organic cotton fiber, which was grown therefore have continued to purchase organic projects in Madhya Pradesh, and is intended to be a useful resource on 76 ha. the cotton, and new customers are also enabling cotton farmers to connect for companies seeking to bring supply showing interest, drawn in by the fact with global supply chains and providing chain partners together and build Though a small-scale project, 66 that the supply chain is very localized. gender training to women.Transparency connected supply chains. traditional fishing families benefit from the Ginning is carried out in the village, and and verification is important in cotton additional income bought in by utilizing cotton bales are then transported to a production so CottonConnect their small plots of land alongside the factory 500km away for processing. developed the traceability software tool called Tracebale, which provides reassurance of sustainable cotton supply.
CottonConnect is also now working with Kering on a project in India in which all
Photo: CottonConnect, India
BACK TO CONTENTS © | Page 57 Q&A with Arun Ambatipudi
Together, individual ChetCo companies ChetCo now has nearly 25 brands, possible by uptake commitments from can effectively address, and continue to spanning 11 countries and four brands and manufactures. Arun Ambatipudi improve upon, the factors that underpin continents, including two new brands - Executive Director, both the supply sustainability and No Nasties and Soul Space - selling on What does the future hold? Chetna Organic impact value of their cotton. Namely: the domestic market in India. Q the economic stability and resiliency, Both Chetna and ChetCo will act as
environmental health, and social welfare best practice teaching/ learning institutes benefit that farming communities need What are you most proud of that these initiatives have for producer organizations and emerging Can you tell us a bit about the for growing high-quality organic cotton Q achieved over the years? sourcing coalitions around the world. A Q ChetCo Model? over the long term. partnership has just been announced Access to finance. Chetna has received with the West Africa Sourcing Coalition, The Chetna Coalition (ChetCo) Together, ChetCo members agree to 13 Croles (~$2 million) working capital with others to come. collectivizes SME brands and participate in, but are not limited to, finance with collateral of less than manufactures for effective supply chain four categories of cooperative-action 10 percent this year. This was made risk management at the cotton source: mandates to make year-on-year the organic farming community. improvements to the sustainability, resiliency, and value of their ChetCo acts as a coalition to grow, marketplace, their coalition, and their scale, and organize their communal farming communities. demand to reliably off-take the full community harvest volume each What were the highlights of season. Members act collaboratively to Q 2017? produce value and reduce risk. Each This year, our value chain coalition season, members grow the value of ChetCo had 70 percent uptake against cotton, their cooperative, and their production of Chetna Organic’s nearly farming community. The members 8,000 smallholder cotton farmers. This work together in efforts to continuously has grown from 15 percent prior to enhance the quality, integrity, traceability, ChetCo’s formation five years ago. and transparency of their fiber. At the same time, members send strong Approximately INR 5,500 ($76) was paid market messages and support per quintal (100 kg), with a premium sustainable community development of INR 250-600 ($3.47 - $8.32). An Photo: Chetna Organic, India through efforts in seed purchase, additional INR 176,000 ($2,580) per healthcare, education, and livelihood quintal was paid in Fairtrade premiums Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases initiatives for farmers. on around 3,000 MT of seed cotton. an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 58 Organic and Fairtrade Cotton Secretariat, Madhya Pradesh C&A Foundation’s organic cotton program in India
The Organic and Fairtrade Cotton Key developments in 2017-18 include: The C&A Foundation’s organic cotton be complemented by additional efforts Secretariat (OFCS) in India, incubated program in India adopts a hotspot by Solidairdad on addressing the by C&A Foundation, having now entered • Approval from the government approach to improve the livelihood of water stress challenge in the region by its third year in Madhya Pradesh, has to set up India’s first center of smallholder organic cotton farmers with promoting micro-irrigation and rainwater been able to successfully show that excellence on organic cotton a vision to contribute towards resilient management solutions. the whole is greater than the sum research at Madhya Pradesh’s communities and landscapes. of its parts. Active participation of leading State Agriculture University. Collectively, at present, the farmers its diverse stakeholders in Madhya In this journey, C&A Foundation has supported by C&A Foundation and • Commitment by the government supported four partners – Action partners cultivate 23,378 ha of cotton Pradesh, including seed companies, to establish at least 100 organic farm groups, ginners and spinning for Social Advancement, Aga Khan area yielding 6,977 MT lint certified and cotton clusters across Madhya Foundation, CottonConnect and 3,224 MT lint in conversion. The goal mills; representatives of research and Pradesh. academia; policy makers; as well as WWF-India - in training and certifying is to help establish independent self- brands and retailers has resulted in • Allocation of a separate auction over 34,000 in-conversion cotton sufficient farmer collectives (comprising leapfrog advancements for organic platform for organic produce in farmers, mainly in the hotspot of of organic cotton farmers) in these cotton in the the state. This has state-operated agricultural markets. southern Madhya Pradesh (also known hotspots that can engage directly in significant implications for the global as the Nimar region). In 2018, the the organic cotton supply chain. As the organic cotton industry, considering that • Deepened industry-academia Foundation also started a program foundation supports a holistic multi- nearly a quarter of the world’s organic collaboration on non-GM seed with Solidaridad in a second intended cropping landscape approach to organic cotton is cultivated in Madhya Pradesh. breeding research. hotspot in the state of Maharashtra with cotton farming, these farmer collectives the eventual aim of engaging 10,000 also stand to gain additional income On May 8, 2018, C&A Foundation and farmers in organic cotton cultivation. from accessing markets for other the Government of Madhya Pradesh The organic cotton program here will organic produce. co-organised a day long celebration on organic cotton called Cotton Trailblazers. This event, dedicated to celebrating Madhya Pradesh’s global leadership in organic cotton production, brought together organic cotton farmers, civil society actors, government and industry representatives on one platform. The event has fuelled many conversations between stakeholders, including farm groups and brands that shall further the cause of organic cotton cultivation.
Photo: C&A Foundation, India Photo: C&A Foundation, India
BACK TO CONTENTS © | Page 59 Second phase of Seeding the Green Future bioRe’s non-GMO seed program
“Seeding the Green Future,” a project participatory research model of this As the availability of GMO-free cotton the project expects to distribute and sell of the Research Institute of Organic project helps to empower female seed in India remains a big challenge, the multiplied seeds to bioRe® farmers Agriculture (FiBL) is entering into its and male farmers through enhanced the bioRe® Foundation and its partners and other interested farm groups. second phase of Green Cotton, collaboration with researchers, breeders, conducted their own seed research co-funded by Mercator Foundation seed companies, advisors, and the at bioRe® in India. Now, after eight The successful research at bioRe® in Switzerland and the Organic Cotton textile industry. Current partners include years of extensive work, the project has India involves the active participation Accelerator, which will run from 2018- Chetna Organic, Pratibha Syntex, completed the required multi-location of farmers, and is focusing particularly 2022. CottonConnect, Action for Social trials to sustain its results and is on the on the evaluation of cotton genotypes Advancement, University of Gwalior, verge of having new, GMO-free cotton under organic conditions. The seed The overall goal of this participatory University of Akola, and the Center genotypes for release in 2018. evaluation program is currently in its breeding project is to improve the for Sustainable Agriculture. Additional third phase, and is collaborating closely livelihood of organic cotton growers funding would enable us to engage The multiplication of selected seeds is with Dr. S.S. Patil from the University of through improved non-GM cotton additional farmers in other cotton already in progress. Over the next year, Agriculture Dharward. cultivars with genetic diversity for growing region of India. adaptation to changing climate. The
Photo: Green Cotton, India Photo: bioRe India
BACK TO CONTENTS © | Page 60 C&A Foundation study on cotton cultivation systems in Madhya Pradesh
While the impacts of different cotton systems- BCI, Conventional & Organic Environmental Impacts: Socio-economic Impacts: farming systems on farmers, their in Khargone district of Madhya Pradesh, livelihood and the environment may be India. • Compared to conventional cotton, • Farmers often learn of organic broadly understood, there is lack of organic cotton shows lower cotton through social networks. The socio-economic study covered negative environmental impacts. credible data to support how smallholder • Farmers largely perceive organic cotton farmers are impacted. As a about 1,200 farming households from each of the cultivation systems. The • The acidification potential for farming in terms of the potential step forward to address this gap, C&A organic cotton is 22 times more for economic benefits. Foundation commissioned two separate environmental study which was a Life Cycle Assesment of 1 metric tonne seed conventional cotton compared to but interrelated studies – one to assess organic cotton. • Exclusive organic cotton cultivation the socio-economic impacts, and cotton, covered 100 households from is less likely to use pesticides, but another to assess the environmental each of the cultivation systems. • The global warming potential for some farmers self-reported use - impacts of three cotton cultivation Some key highlights of the study were: organic cotton is 50 percent lesser this needs to be validated through than conventional cotton. soil testing.
• The fresh/blue water consumption • Organic cotton farmers are more for organic cotton is 41 percent less likely to be in debt and have higher than conventional cotton. debts than conventional cotton farmers.
• In 2016-17, 49 percent of the organic cotton farmers made profit from agriculture; however, on an average both conventional and organic farmers made losses. Thus, it is important to create incentives to motivate farmers to continue cotton farming.
• Organic farmers reported significantly lower yields than conventional counterparts.
Photo: C&A Foundation, India Photo: C&A Foundation, India
BACK TO CONTENTS © | Page 61 RESET for regenerative organic in India Sense Organics initiates organic cotton project in Myanmar
MetaWear and Grameena Vikas for RESET regenerative organic “in After more than a decade of supporting holder farms certified to organic GOTS Kendram Society for Rural Development conversion” cotton. Organic Cotton farming in India, three with the plan to double each year for have co-created RESET, a program that years ago, Sense Organics and five years. By putting farmers first in targets tribal cotton farmers in India’s • 2018 | Support secured from Armstrong Spinning Mills began to this program, early indications are that cotton belt, supporting them and their Control Union, the Textile Exchange, develop an organic cotton program in income levels will increase by at least 25 communities as they adopt regenerative and the Rodale Institute to develop central Myanmar. While the country has percent and progress will be measured organic farming practices. RESET aims the first-ever Regenerative Organic many challenges, the plight of the cotton against the Sustainable Development to make farming a win-win-win for the In Conversion farming standard to farming communities is considerable Goals while the lint price will still be environment, society, and economy. As be piloted on RESET farms during with no access to high value markets, competitive with global price of organic the first vertically-integrated regenerative the 2018/2019 season. extension services or quality inputs. cotton. program, RESET is uniquely positioned • 2018 | Guaranteed demand from In addition to this, the cotton price to have lasting impact in these three fluctuates extremely aggressively and With over a quarter of the world’s USA and EU markets, ensuring population on its borders, an available areas. price premiums to farmers. with no minimum support price, the business case for farmers has been very 15,000 acres of rainfed land without Highlights of the pilot program include: • 2018 | Initial investment and weak keeping many trapped in a cycle GMO contamination and ready for organic GOTS certification, a huge • 2016-2017 | Two successful pilot operations support from the of poverty. government of Andhra Pradesh. willingness from farmers, eager to sew seasons representing 88 tribal Today, the project has secured financial the benefits of organic cotton farming farmers receiving price premiums support from C&A Foundation and into their communities, close trade links the UK’s Department for International with India, Bangladesh and China and Development, with technical support one of the fastest growing garment from Peterson and certification and industries in the world. compliance from Control Union. So Pure Myanmar, a Myanmar registered To learn more, please contact Kirsten subsidiary of SO Germany is now Weihe - Keidel. conducting seed trials on Government and small holder farms covering 50 acres in organic conditions. With a focus on seed development and multiplication, extension services, trade finance, multi-cropping, market access and full item level traceability, next year they aim to plant over 1500 acres under small Photo: RESET, India
Photo: Sense Organics, Myanmar
BACK TO CONTENTS © | Page 62 C&A Foundation’s organic cotton program in Pakistan SIA Foundation Pakistan
Imran Asgher, SIA Foundation Pakistan In Pakistan, C&A Foundation is Balochistan. This greenfield program is testing the feasibility of organic cotton galvanising interest from the government SIA Foundation Pakistan was founded by like-minded textile professionals aware of production in the world’s fourth largest on creating enablers for organic cotton the upcoming challenges being faced by the textile industry in Pakistan. cotton producing countries. The including supply of non-GM seed, from The Foundation’s Organic Cotton Cultivation (OCC) program launched in 2017, with foundation is currently supporting 4000 many reputed research institutions, a pilot project initially for multiplication of non-GMO organic seeds for large scale farmers in Balochistan province to such as Lasbella University for research organic cotton cultivation in the country. This pilot, which is located in the village transition to organic cotton production on organic pesticides; Central Cotton Veyaro, Lesbela district of Balochistan, is set to expand up to 5,000 ha over the next on 19,895 hectares yielding 9,143 MT Research Institute on non-GM seed two years. lint. The program is implemented by breeding and from supply chain actors. WWF- Pakistan in collaboration with the SIA Foundation is committed to train around 2,500 farmers for organic cotton Agriculture Extension Department (AED), cultivation and expand gradually over the coming five years. The Foundation will support farmers through their first, second and third year conversion from Progress for Pakistan’s Rural Business Development Center conventional to organic certification. The aim of the expansion is to convert 6,000 cotton farmers to organic cultivation. Dr. Shahid Zia, Managing Director, RBDC SIA Foundation achieved a key milestone by establishing a partnership with Agriculture Extension Department (AED) of Balochistan within the first year of its The Rural Business Development Additionally, RBDC has been partnered foundation. A memodrandum of understanding has been signed to promote organic Center (RBDC) in Pakistan continues to by Saif Group (a national company cultivation within Balochistan with support of the AED team on the ground. promote organic cotton production in dealing with cotton processing and the country. Though lacking sufficient trade) to support organic cotton SIA Foundation is also committed to planting neem trees in targeted project areas. funding to scale up the project, some production in this area, with Saif Group Neem is a natural pest deterant used to minimize pest attacks on the cotton crop. recent developments have raised having agreed to buy all organic cotton hopes. and in-transition cotton from the farmers. With their support, RBDC is organizing The research project that was initiated farmer groups for training who plan to by RBDC with Government of Punjab in grow organic cotton next year. 2017 went very well. The cotton varieties that farmers in the area generally use to produce organic cotton are of short staple length but, in this research, varieties with reasonable staple length (29 to 31) have been grown successfully. Photo: SIA Foundation, Pakistan
BACK TO CONTENTS © | Page 63 Stakeholder directory
Who’s doing what in South & Southeast Asia
This map highlights some of the key organizations working to support organic cotton in this region. PAKISTAN INDIA C&A Foundation Non-profit Textile Exchange Chetna Organic Non-profit Farmers Association (COFA)
WWF Pakistan Industry Association
Non-profit Organic & Fair Cotton Secretariat (OFCS) Chetna Coalition (ChetCo) RBDC Partnerships Partnerships Service Company
Organic Cotton Accelerator (OCA) C&A Foundation SIA Foundation Non-profit Non-profit Non-profit
CottonConnect APEDA MYANMAR Social Enterprise Governmental Organization Sense Organic Service Company bioRe India THAILAND Non-profit Pre-Organic Cotton Partnerships Government seed Green Net Cooperative development program Non-profit Governmental Organization
Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 64 United States of America
Photo: Texas Organic Cotton Marketing Cooperative, USA
BACK TO CONTENTS © | Page 65 United States of America REGIONAL PRODUCTION
NORTH CAROLINA
0.65 MT 58 8,369 26% Organic Farmers Organic Certified Fiber (MT) Growth 1+99S Land (ha) over 2015/16
4,529 496 4% Organic Cotton Organic In-Conversion Share of Global Organic Fiber (MT) Land (ha) Cotton Production
5-YEAR PRODUCTION TREND
5,000
4,000 NEW MEXICO TEXAS 3,000 USA 307 MT MT 2,000 4,221 Fiber Production (MT) 1,000 7+93S 93+7S
0 Adjustment: Please note that the production data reported for the United States 2012-13 2013-14 2014-15 2015-16 2016-17 in the 2017 OCMR was incorrect, and has been retrospectively adjusted.
BACK TO CONTENTS © | Page 66 In 2016, 8,369 hectares were planted Fifteen other Texas farmers grew 422
with organic cotton in the USA. This MT on 840 ha in the High Plains area, USA yielded approximately 20,400 bales of representing ten percent of the country’s organic cotton, equivalent to 4,529 MT total organic cotton growing land area. of fiber. In New Mexico, approximately 307 MT of The Texas Organic Cotton Marketing organic cotton fiber (seven percent of the 58 Cooperative (TOCMC), a co-op of 35 national total) was grown on 458 ha by Organic Farmers family farmers based in the West Texas three farming families, two of which grew High Plains, grew 84 percent of all the Pima cotton. In North Carolina, a small organic cotton harvested in the USA amount (0.65 MT) of upland organic 8,369 Organic Certified in 2016. TOCMC grew 17,055 bales cotton fiber was grown on 1.2 ha. Land (ha) (3,799 MT) from 14,967 harvested acres TOCMC, in particular, continues to (6,057 ha) for an average of 1.1 bale per transition additional acreage into organic acre. Approximately 2,510 acres were 4,529 production, planting organic cotton Organic Cotton lost to harsh weather, including hail and Fiber (MT) on 1,225 transitional acres (496 ha) in wind. 2016. Several other High Plains farmers have limited acreage in transition. 1,793 Organic In-Conversion Land (ha)
26% Fiber Year-On-Year
4% Share of Global Organic Cotton Production
0.1% USA-based Textile Organic Share of National Cotton Production Exchange members educated USA senators about organic fiber and textiles.
Photo: On the Mark PR
BACK TO CONTENTS © | Page 67 Comparing fiber characteristics and price of organic and conventional USA cotton
Fiber characteristics Price
The quality of TOCMC’s organic cotton The cotton plant yields two crops – fiber is very similar to the non-organic cotton and cottonseed. Organic cottonseed grown in the area when it comes sales, for use as dairy feed, is a vital to length, micronaire, strength, and part of the financial equation for organic uniformity. For example, for the 2016 cotton farmers, and expanding organic crop, TOCMC’s average staple length dairies are eager to use it as a fiber- and was 29.3 mm compared to a 28.8 protein-rich feed for cattle. mm average for all the cotton in the In Texas, the price for the 2016 TOCMC area. Color grade is the only quality organic cotton crop was $1.10-1.35 per characteristic for which the organic pound of lint fiber. For the 2017 crop, cotton tends to run slightly lower. This the price increased to $1.20-1.45 per is a result of the fiber usually having pound. The USA average per pound to remain in the field on the stalk for price for 2016 crop conventional cotton an extra 4-6 weeks while waiting for a was approximately $0.68 per pound. freeze to defoliate the plants to facilitate mechanical harvest. In New Mexico, the price of organic pima was approximately $2.10 per New Mexico’s long staple pima cotton pound in both 2016 and 2017. The had a staple length of approximately 36- price of upland Acala was approximately 40 mm, while the upland Acala variety $1.30/pound. In 2017, the price for was 31-34 mm. conventional pima was approximately The average length for North Carolina $1.20 per pound and $0.75 per pound white upland cotton fiber was 31 mm. for upland cotton. The average organic cottonseed prices for the Lubbock, Texas, area for both the 2016 and 2017 crops was $500 per ton versus conventional cottonseed prices of $242 for 2016 and $193 for 2017.
Photo: Texas Organic Cotton Marketing Cooperative, USA
Photo: Dosi and Norma Alvarez
BACK TO CONTENTS © | Page 68 Texas A&M AgriLife’s cotton breeding program What Textile Exchange is doing
In 2017, the cotton breeding program agronomic performance and/or fiber at Texas A&M AgriLife Lubbock quality to these same standards. Research and Extension Center (LREC) Collaborating to expand the USA market The germplasm lines were developed released two germplasm lines under and tested on organic cotton farms development for several years - CA Textile Exchange worked closely with of social media updates from on-site (including those in TOCMC) with funding 4005 and CA 4006 - that can be the Organic Trade Association in 2017 presentations, enabled the many who from USDA’s Organic Agriculture used to breed cultivars with host plant to help raise the visibility of organic fiber could not attend to nonetheless follow Research and Extension Initiative. The resistance to thrips insects that cause among both consumers and regulators. the event using #LiveOrganic. resistant lines provided an average of 37 damage to young cotton seedlings, percent reduction in thrips damage and In May, 2017, Textile Exchange, TOCMC In October, 2017, as part of the Textile especially in organic cotton where an OMRI-approved spinosad insecticide organic farmers, and representatives Exchange annual conference, its USA- systemic insecticide seed treatments showed the same average level of of leading organic cotton and organic based leading companies visited key are not used. Young seedlings grown damage reduction. Together, spinosad wool fashion and home textile brands senators’ offices in Washington, DC, from the seed of both newly developed insecticide and resistant lines gave 80 participated in an Organic Trade to educate them about organic fiber lines exhibited substantially improved percent protection from thrips feeding Association-hosted “Live Organic from farming and the organic textile sector resistance to thrips feeding injury at the injury compared to standard cultivars Farm to Home” event in New York City. and urged Congress to strongly support field level compared with commercial with no spinosad. New cultivars available The focus was on educating consumers organic agriculture as they began Farm cultivar standards adapted for the Texas for farmers to test on organic cotton and the media that “organic is not just Bill deliberations. High Plains. They are also comparable farms could be available by 2020. for eating anymore.” A steady stream (and in some cases, superior) in overall
Participants at the Organic Trade Association #LiveOrganic event in New York City.
Photo: Organic Trade Association, USA
Photo: Dr Jane Dever, Professor and Cotton Breeder, Texas A&M AgriLife Research
BACK TO CONTENTS © | Page 69 Q&A with Sally Fox
Sally Fox to withstand soil born diseases on their For the brown color family, fiber length Plant Breeder, Owner, own and out grow and out produce pest improvements have been achieved, but pressure. those resulted in reduction of yield, so Vreseis, Ltd. I continue to work on intensity of color Brooks, California The big challenge was getting the fibers coupled with fiber length improvements produced to be long, strong, and fine while not compromising yield. enough for machine spinning. And What is Vreseis? gardens, that had not been selected capable of being machine picked. And Major improvements on color stability Q for response to ag chemicals, that I whose color did not wash out when with the reds/ochre color pallet have stood a chance of being able to develop being laundered. occurred, along with significant Vreseis is the longest running organic varieties that could be successfully be agronomic advances such as non- cotton seed breeding program that I grown organically. The very first organic cotton grown here photoperiodic cultivars. Now I am am aware of, and I continue to make in the USA was my cotton that I bred working on fiber length improvements of progress every year. I started breeding My first and second generation of and it got the conversation going about that color family. In 2016, I was able to naturally colorful cotton in 1982 (and varieties did just that. In the early 1990s, cotton. And how we might approach it’s increase seed stock of a line in this color formed Vreseis Limited in 1986 to fund we had thousands of acres of these farming more sustainably. But naturally family that I hope to find the funds to this research by selling the cotton itself). cottons being grown in Arizona and colorful cottons did not stop with the increase further soon. south Texas organically. These are parts farming, it asked the textile industry how Why bother breeding of the USA whose normal white cottons could it have a better sustainability report What’s the future for colored cotton... doesn’t received more than 11 applications card. Q colored cotton? Q everyone want white of pesticides per season, not even cotton? counting all the seed treatments and What progress have you Reduction in dye use by utilizing their defoliants. Q made with breeding the natural colors for khakis, etc. and by Well, my idea originally was that these different colors? using at a base to reduce the amount cottons that are naturally pest and With naturally colorful cottons, there is of dye required to create rich vibrant disease resistant would open the door no issue with staining of the leaves when For each color, different types of dyed colors in cotton textiles. Achievable to farming cotton organically. That machine picking, so defoliants are not improvements are called for. because these cottons have tannin the white cotton varieties offered to even required. Even the farmers who within the fiber which is a dye mordant. It farmers worldwide were all bred to be were not growing organically i.e. - used With the green cottons, fiber length and draws dyes- both natural and chemical- dependent upon chemical help from normal fertilizers - did not need to use strength have been solved, but yield and inside the fiber and thus less dye of any farmers. Everything from fertilizers to pesticides and so it seemed like the other agronomic issues, along with color kind is needed. pest management they were selected logical way to get organic cotton going. manipulation using sustainable materials to do best with. By breeding with these You start with varieties that are able to in the yarn and or fabric finishing, remain But more importantly to me is the fire cottons that were only being grown in forage the soil for their nutrients, able targets for further exploration. resistance that the tannin within the
BACK TO CONTENTS © | Page 70 Q&A with Sally Fox
brown color imparts. These I have been funding all this cottons are in the realm of research all these years by wool in terms of flammability. selling the cotton itself and They do combust, but selling the products of this with less vigor. And this cotton. Thanks to Itochu is significant. When I ran and Dr Kondo, I am still in tests as little as 13 percent business. Thanks to my mail brown cotton mixed with order customers who buy white rendered some fabrics socks and yarns and fabrics, passable on some flammability I have hung on. By myself, on tests for certain uses, such as my biodynamic farm. But, I fleeces. want to train younger people in my method of organic My current goal is to form a breeding of cotton of all non-profit that gets funded colors- yes I also breed the by industry to get good white cottons- and see this foundation seedstock to cotton offered as a possibility interested groups around the to designers all over the world world so that they can breed as the integral part of the washable, spinnable, pickable sustainable textile option that it naturally disease and pest most definitely is. resistant cottons for their own areas.
Photos: Top - Paige Green for Vreseis; Bottom - Vreseis, USA
Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases an eclectic mix of industry leaders speaking from “inside” their organizations.
BACK TO CONTENTS © | Page 71 Stakeholder directory
Who’s doing what in the USA?
This map highlights some of the key organizations working to support organic cotton in this region.
NORTH AMERICA
Textile Exchange Non-profit
Organic Trade Association Industry Association
Texas A&M Agrilife Research Research Institute
Texas Organic Cotton Marketing Cooperative (TOCMC) Producer Organization
Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms
BACK TO CONTENTS © | Page 72 Standards & Certification
BACK TO CONTENTS © | Page 73 Organic textiles certification
Certified facilities*
GOTS OCS TOP 10 COUNTRIES USING OCS & GOTS
B NIC LEN ANIC A D G 10 R 0 G E R D O GOTS has certified units in 62 countries & OCS in 40 countries
O
c c
o d o d n r n r a a te d te d nt stan nt stan 5,024 Other Countries Italy Germany Turkey Bangladesh China South Korea (2017) 766 • 238 307 480 • 49 445 • 400 534 • 730 292 • 692 69 • 207 4,642 3,663 3,814 (2016) 3,661 3,643 (2015) (2016) (2017) (2014) 3,170 3,126 3,085 (2014) (2015) (2013) 2,516 (2013)
5,024 (h8%) 3,643 (i0.5%) Certified Facilities 2017 Certified Facilities 2017
1 India : h11% 1 India : h3% 2 Bangladesh : h61% 2 Bangladesh : i0.4% 3 Germany :h38% 3 China : h14% 4 Turkey : h5% 4 Turkey : h20% 5 Italy : h57% 5 South Korea : h2% 6 China : h9% 6 Pakistan : i6% 7 Pakistan : h13% 7 Japan : i42% 8 Portugal : h88% 8 Germany : h17% 9 USA : h87% 9 Hong Kong : i45% 10 South Korea : h13% 10 Sri Lanka : i21% USA Portugal Pakistan India Sri Lanka Hong Kong Japan 99 180 194 • 165 1,658 • 933 37 41 151
*Please note that the figures detailed on this page reflect the number of facilities certified to produce GOTS/OCS products in 2016, which may differ from the number that actually produced GOTS/OCS certified products in that year.
BACK TO CONTENTS © | Page 74 Organic textiles certification Textile Exchange’s Shared Measurement System
Organic cotton is grown within a rotation to the final product, with GOTS also Information has always been core to all of Textile Exchange’s data systems system that builds soil fertility, protects addressing textile processing. how Textile Exchange delivers value, and that links producers, suppliers and biodiversity, and is grown without the use the organization was the first to collect brands to provide a holistic and multi- of any synthetic chemicals or GMOs. In 2017, there were 3,643 and 5,024 and report on organic cotton production dimensional view of impacts in preferred Organic cotton is subject to the national facilities certified to OCS and GOTS, data in 2005. Both our data collection fiber and material and paves a path for laws governing organic production respectively. Following an impressive and reporting mechanisms have the standards continual improvement. including the EEC Organic Regulation double digit growth of 21 percent in transformed significantly over the past The new Central Database System 834/2007 in Europe, USDA National 2016, the number OCS certified facilities decade. Our data collection process is described on the next page will provide Organic Program (NOP) in the United dropped by 0.5 percent in 2017. now verified according to GRI principles the traceability backbone to the SMS. States, and the National Programme Facilities certified to GOTS grew by eight and brand and retailer data is also now for Organic Production (NPOP) in India. percent, with the most significant growth collected through our recognized online Merging data with potential collaborators Voluntary standards, the Global Organic rates coming from Portugal, the USA, benchmark program, from which we on key impact indicators, such as Textile Standard (GOTS) and the Organic Bangladesh and Italy. See the previous provide valuable insights to participating water and carbon, will enable an Content Standard (OCS), provide chain page for a more detailed overview. brands and the wider sector on PFM unprecedented view of how the of custody assurance from the farm market size, demand, supply and community is doing in areas that matter impacts. most. Leveraging our current work on SDG mapping will further allow the IFOAM Motion 61 passed: fiber production and processing for Textile Exchange is introducing a Shared sector to report on impact footprint organic textiles to be covered by appropriate standards Measurement System (SMS) that will within the universally recognized SDG essentially be the connected network of framework. In November 2017, a Motion was should cover the whole supply chain (as passed by IFOAM - Organics is the case with food) and that stating International for: “Textiles advertised/ the organic fiber content (“contains X GMO testing method project conceptualised by GOTS labelled ‘organic’ and made with organic percent organic cotton”), through for fibers produced according to recognized example Textile Exchange’s Organic GOTS has initiated and conceptualized that at the end of this, we will have a standards (e.g. IFOAM Family of Content Standard, is a relevant step. a project to determine testing protocols clear idea of which tests work, what Standards), should also be processed for GM presence in cotton fiber and could be a standardized test protocol to a standard (endorsed by IFOAM - IFOAM - Organics International said it downstream products. This project and where in the supply chain these Organics International) that prohibits would communicate this to stakeholders is being funded by Organic Cotton tests are reliable. It is expected that hazardous and residual inputs according and engage with them for the Accelerator (OCA). Ideally, it will lead these conclusions will be of immense to a clear procedure.” widespread adoption of a whole-chain- to an ISO standard. It is expected that value to the entire organic cotton supply approach (chain of custody) to labelling the exercise may take between 12 and chain by removing uncertainly among IFOAM - Organics International organic textile products. 16 months depending on the scope test laboratories and test results. acknowledged that such standards accepted by the ISO. We feel confident
BACK TO CONTENTS © | Page 75 Central Database System
Development timeline - Phase 1
The Central Database System (CDS) • Provide opportunity for traceability May Project Initiation is a collaborative technical platform and transparency of material source for the chain of custody of GOTS and and supply chain member data for June – August Requirements Definition Textile Exchange standards. Developed stakeholders. June – August System Configuration in partnership between the two organizations, the CDS integrates scope The current review of the organic September Preliminary CB and Supplier Testing certificates, transaction certificates, standards for backward traceability from and volume reconciliation across all gin to farm, to be incorporated into the October Stakeholder Calls CDS, will further connect and reconcile supply chain actors for Global Organic October 2 CB Webinar Textile Standard (GOTS) and Organic the national organic farm standardsand Content Standard (OCS) in organic, as OCS. October 21 CB Feedback (Textile Exchange Conference) well as Content Claim Standard (CCS), What does this mean? Recycled Claim Standard (RCS), Global October 24 CDS Preview (Textile Exchange Conference) Recycled Standard (GRS), Responsible • CDS will be the single source December Acceptance Test Down Standard (RDS) and Responsible system for verification of scope Wool Standard (RWS) in other preferred certificates and transaction December Further Configuration & Testing fiber and materials. certificates for GOTS and Textile January 1 CDS Release (Pilots) Exchange standards. The objectives of the CDS are to: • GOTS and Textile Exchange • Increase efficiency, traceability, and standard licensees, as well as transparency of certification and its How to be involved? buyers and sellers of a transaction related activities by providing greater certificate, can check scope and • LEARN: Find out more about the development of CDS and how it affects your access to certification data; transaction certificate profile and organization. • Prevent fraud for certificates and validity in CDS. • ENGAGE: Be a part of the CDS Working Group to understand and help shape duplicate organic orders by creating CDS will be the single source system the development of the system. a single source for verification and for verification of scope certificates volume reconciliation; and transaction certificates for GOTS • SPONSOR: The CDS is an initiative to strengthen the integrity of the organic and other preferred fiber and materials. Your contribution will help our continuous • Provide standards’ impact data for and Textile Exchange standards where effort for better traceability, transparency and reporting of these materials. standard scheme owners; standard licensees as well as buyers and sellers of a scope and transaction To find out more, email:[email protected] . • Provide public facing data about certificate can check for profile and certified companies; and validity in CDS.
BACK TO CONTENTS © | Page 76 Methodology & Disclaimer
BACK TO CONTENTS © | Page 77 2018 methodology & disclaimer
Textile Exchange is in the unique position of accredited Certification Body (CB). Organic In-Transition Land: In-Transition Land refers to and August 2017 (i.e. covering 2 ICAC years), being the only organization currently reporting cotton growing practices may vary slightly land that is undergoing the required three-year the data is allocated to the first year (e.g. on the global organic cotton supply and trends from country to country but common to transition period from conventional to organic 2016). In countries, such as USA, where the on an annual basis. all is the avoidance of the use of toxic and as required by all organic standards. While no cotton is picked in October 2017 to December persistent synthetic agrichemicals (pesticides toxic chemicals are allowed during this time, 2017, data for the previous calendar year (e.g. Our priority is to ensure the accuracy and and fertilizers) and genetically modified seeds. the transition period is required to eliminate October 2016 – December 2016) is reported. quality of our data, management systems, and remaining residues left in the soil from past reporting. To that end, with the sponsorship Seed cotton: Seed cotton is the raw cotton conventional practices. Land undergoing the Cotton Producing Countries/Production: of C&A Foundation, 2018 marks a milestone including fiber and seeds (i.e. pre-ginning first, second and third year of this transition In 2018, Textile Exchange’s systematic for Textile Exchange in achieving independent cotton). period is referred to as Year 1 (Y1), Year collection, review and reporting of organic third-party verification on its organic cotton 2 (Y2) and Year 3 (Y3) In-Transition Land, cotton production covers more than 95 data processes to the Global Reporting Cotton Fiber/Lint: Cotton fiber/lint is cotton respectively. percent of overall cotton production volume Initiative (GRI) standard and Accountability that has gone through the ginning process to and 50 percent cotton producing countries. Principles for the Organic Cotton Market remove seeds, leaves and casings (i.e. post- Yield: Measured in kilograms per hectare In all, 32 of the 64 cotton producing countries Report (OCMR). ginning cotton). (kg/ha), Yield refers the amount of cotton have been identified as potentially relevant produced (in kilograms) for each hectare of for organic cotton production and covered The following sections sets out the abridged Cotton In-Conversion: For cotton to be land farmed. Yield is typically measured at two by an independently verified systematic data methodology used to collect, analyze and certified organic, it must be grown organically levels: Seed Cotton Yield (i.e. pre-ginning) and process. This identification process has been crosscheck the data on the production of on land that has undergone a three-year Cotton Fiber Yield (i.e. post-ginning). based on data collected, publicly available organic cotton fiber in 2018. transition period from conventional practices records, interviews and correspondence with (note the conversion period may be reduced Metrics (ha, kg, mt, m, b): This report uses the various stakeholders. Key terms & definitions in certain circumstances). While no toxic metric system for measurements and units chemicals are allowed during this time, the have been abbreviated as follows. Different Standards (Cultivation): Textile Exchange Organic Cotton: Organic Cotton is cotton that transition period is required to eliminate local units are converted into international, applies a complete list of all standards is produced according to the IFOAM Principles remaining residues left in the soil from past harmonized units: Ha = hectare (1 hectare = accepted in accordance to “IFOAM Family of of Organic Agriculture and certified to the conventional practices. Cotton produced 2.47 acres); kg = kilogram (1 kg = to 2.20 Standards.” A systematic completeness check IFOAM Family of Standards at the farm level. during the three-year transition period is lbs = 0.0045929637955183 US bales = was carried out on all data collected against At present, the main farm standards include termed Cotton In-Conversion. 0.005882353 Indian bales); mt = metric ton published data by 53 Certification Bodies the EU Organic Regulations in Europe (EU- (1,000 kg); m = million (1 m = 1,000,000 kg); b across 46 IFOAM Family of Standards. Reg), USDA National Organic Program (NOP) Organic Certified Land / Land Area Certified = billion (1 b = 100,000,000). in United States, and the National Programme To Organic: Organic cotton must be grown Data Source: For OCMR 2018, more than for Organic Production (NPOP) in India. on land area certified as organic to theIFOAM Reporting boundaries, 88 percent of organic cotton production was sourced from Accreditation Bodies (7 Family of standards. However, as organic completeness and accuracy Organic cotton is grown as part of a cotton is grown within a rotation system percent) and Certification Bodies (81 percent). to build soil fertility, depending on soil and Sourcing data from Organic Cotton Producers production system that sustains the health Reporting Period: The data being collected climatic conditions, the same piece of land will continue to serve as a source for cross- of soils, ecosystems and people. It relies cover a 12month cycle and are based on may also grow a variety of other crops such as validation and to understand farm level on ecological processes, biodiversity and the International Cotton Advisory Council groundnuts, maize and beans. As the scope scenarios, as Certification Body data is limited cycles adapted to local conditions, rather (ICAC) harvest year of 1 August to 31st July. of organic certification covers the variety of to a small set of indicators. than the use of inputs with adverse effects, In 2018, data for the 2016-17 harvest year crops grown, the land area recorded during and is grown in rotation with other crops that were collected. In countries, such as Tanzania, a certification process is referred to Organic replenish the soil. Organic cotton requires a where the cotton is picked between July 2016 third-party certification from an independent, Certified Land.
BACK TO CONTENTS © | Page 78 Data sources on estimated production. Production volume Reporting limitations Disclaimer collected from varying data sources is reported in OCMR on an as-is basis and does not Data was collected from a combination of four • The integrity of organic cotton is Textile Exchange collects and reports account for any variance between estimated sources - Authorization Bodies, Certification assumed addressed through the production of certified organic cotton data and actual production. Bodies, Organic Cotton Producers and Other certification process and that all organic from Accreditation Bodies, Certification Business Aggregators and Stakeholders (i.e. cotton production data provided by data Bodies, Organic Cotton Producers as well ginners, mills, manufacturers, buyers, and Historical or Average Yields: Where data sources are certified. as other stakeholders on an as-is basis. NGOs.). The data is collected via telephone is only provided for land area but not the Data reported is intended as a snapshot of production volumes, historical yields known interview, site visit, or email by the Textile • Production data provided by data production and makes no representation on for the specific project or locality or annual Exchange Ambassadors between April and sources are accurate, true and complete total supply. While Textile Exchange carries national average yields (as agreed by the July 2018. to the reporting period specified. out a systematic completeness and accuracy government and applied by certifying bodies) check on its data collection process, we rely have been used to calculate the production • The variance between estimated on our data providers for data accuracy Data analysis and checks volume. production captured at audit by a and integrity. Where data gap exists, Certification Body and the actual Textile Exchange attempts to replace these Textile Exchange makes every attempt to Land Area Certified to Organic: In selected harvest volume reported by Organic values with best estimates from historical obtain a single complete data set per country cases where land area under organic cotton Cotton Producers is acceptable (per the or comparable proxies. Data reported may from a Certification Body, a secondary data is reported and total land area certified to certification process). change due to corrections or updates from source from an Organic Cotton Producer organic is not reported, the latter is estimated data sources. and where possible a third data source from to be equal to the former. alternative stakeholders. The different data • Research findings are dependent For the purpose of the OCMR, organic cotton sets are harmonized for metric consistency on publicly available data and it is Ginning Outturn: Where only seed cotton data does not include any uncertified naturally and, in the case of missing data or data the responsibility of Certification and is available, lint production is estimated using grown cotton nor does it make any statement deviation, scenarios or average data are used. Accreditation Bodies to make available all the ginning outturn known for the country. regarding the integrity beyond its certification, Collecting data from multiple sources allows pertinent data and information. and reported numbers, as reported by our Textile Exchange to triangulate the information Estimation for Intercrops: Where only the data providers. from different providers and cross-check total certified land was reported, the average against data reported in the past. In case of rate of intercrops was applied to derive fiber inconsistencies, rationales for decision-making production. (e.g. in India an estimated 33 are defined in a systematic process and percent for intercrops is applied as per documented. The final aggregates are proofed Certification Body methodology). by industry experts. Land In-Conversion: In selected cases where Special remarks in-conversion organic cotton fiber production from land area in-conversion is reported and Production Volume: A Certification Body land area in-conversion is not reported, yield estimates the production volume of an is applied as the divisor to derive land area Organic Cotton Producer at time of audit. in-conversion. Within the certification process, a variance of up to 10 percent is permitted between estimated production (at time of audit) and actual harvest (post audit). As at time of data collection, Organic Cotton Producers would have realized its harvest, data collected from Organic Cotton Producers is likely to be based on actual production whereas data reported by Certification Bodies is likely to be based
BACK TO CONTENTS © | Page 79 About Textile Exchange
Founded 15 years ago, Textile Exchange is a global non-profit with more than 260 Textile Exchange has three tiers of membership to suit your company or members that represent leading brands, retailers and suppliers – the quality and organization’s needs, including Friend, Supporter, Partner (Brand/Retailer) and global reach of which has meaningfully accelerated the use of preferred fibers and Partner (Supply Network). Current Partner level members include: increased the adoption of standards and certifications in the global textile industry. As an organization, Textile Exchange creates leaders in the sustainable fiber and materials sector by providing learning opportunities, tools, insight, standards, data, measurement and benchmarking—and by building a community that can collectively accomplish what no individual or company can do alone.
Textile Exchange members are connected to a powerful community of brands, retailers and companies, large and small, from across the textile world—all seeking to create a more sustainable and responsible fiber and materials industry. Members gain access to a suite of valuable tools, relevant data, insight reports, industry networks and connections —and, above all, the opportunity to take action, individually or collectively. Our goal is to help you succeed. Please join us in our collective journey!
Also: Materials Innovation Lab | Shanghai Different Chemical Fiber Co., Ltd.
BACK TO CONTENTS © | Page 80 Acknowledgements
It has been a privilege to work with the C&A Foundation again this year, alongside the committed community of organic cotton farmers, manufacturers, brands, and retailers to generate this report. We would like to extend our sincere gratitude to all that have contributed data, expertise, updates and photos for their continued and valuable co-operation:
APEDA • Bergman Rivera • bioRe Foundation • BioSustain • C&A Foundation • Catholic Relief Services • Chetna Coalition Chetna Organic • Control Union • Cotton Connect • ECOCERT • Eko-Tar • EMBRAPA Algodão • ESPLAR • Fair Cert Fairtrade International • FENABE • FiBL • FiLMAR – GOTS - Green Net Cooperative - Gulu Agricultural Development Company HELVETAS Swiss Intercooperation • Instituto C&A Brazil • Justa Trama • KOWA • National Cotton Classification Center Greece Natural Cotton Color • Natural Fashion • OneCert • OBEPAB • Organic and Fairtrade Cotton Secretariat - Organic Cotton Accelerator Organic Cotton Colours • OrganiMark • Pratibha • Pesticide Action Network UK • Pesticide Action Network Ethiopia RARE • RDFC • Rural Business Development Center Pakistan • SEKEM • Sense Organice - Smallholder Farmers Alliance SOCiLA • SODEFITEX • Stay True • Suminter • Texas A&M AgriLife • Texas Organic Cotton Market Cooperative Vreseis, Ltd. - UNPCB • USDA Foreign Agricultural Service • VEJA Shoes
Report production team Regional data collection team
Liesl Truscott (Lead) Africa: India: Turkey, Egypt and Central Asia: Evonne Tan Silvère Tovignan, Lazare Amish Gosai Atila Ertem Lisa Emberson Yombi, Leonard Mtama Amish Gosai Alice Dos Santos China: Latin America: United States: Evonne Tan Silvio Moraes Sandra Marquardt Phil Bettany (Report Design)
BACK TO CONTENTS © | Page 81 Textile Exchange envisions a global textile industry that protects and restores the environment and enhances lives. www.TextileExchange.org
To learn more about organic cotton, visit Textile Exchange’s dedicate microsite:
www.aboutorganiccotton.org
For the latest news and trends in the wider preferred fiber and materials landscape, look out for Textile Exchange’s 2018 Preferred Fiber & Materials Market Report 2018, being released soon.
BACK TO CONTENTS © | Page 82