Organic Cotton Market Report 2018 - Textile Exchange

Page created by Randall Lane
 
CONTINUE READING
Organic Cotton Market Report 2018 - Textile Exchange
Organic Cotton
Market Report 2018
Organic Cotton Market Report 2018 - Textile Exchange
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.                                                                                                               DIVERSIFY YOUR SOURCING
                                                                                  Textile Exchange
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
Organic Cotton Market Report 2018 - Textile Exchange
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
Organic Cotton Market Report 2018 - Textile Exchange
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

Africa20                                                  Organic textiles certification              75

Q&A with Prama Bhardwaj                              25   Central Database System                     76

Stakeholder directory                                29
                                                           Methodology & Disclaimer                    77

China30                                                   2018 methodology & disclaimer               78

Q&A with Veronica Yow                                34   About Textile Exchange                      80

Stakeholder directory                                37
                                                                                             ©   |   Page 4
Organic Cotton Market Report 2018 - Textile Exchange
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-
                                                              In this report you will find many fine examples of organic           Foundation is glad to have supported
ups and bite-sized, yet totally inspiring, stories from the
                                                              cotton programs across the globe. You will see they                  Textile Exchange on this journey. We hope
organic field.
                                                              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
Organic Cotton Market Report 2018 - Textile Exchange
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
  growth include Tanzania, Uganda,         from Pakistan, China, Tanzania, and
                                                                                                                       Tajikistan
                                                                                                                       6,405 mt
                                                                                                                                         Kyrgyzstan
                                                                                                                                          8,019 mt
                                                                                                                                                                            +10%
                                                                                                                         5.4%
                                                                                                                                            6.8%
                                                                                                                                                                            over 2015/16
  Benin, Turkey, and the USA.              Turkey.                                                        Turkey
                                                                                                         7,741 mt
                                                                                                                                                                  Organic Cotton Fiber (MT)
                                                                                                           6.6%
                                                                                                                                                China
                                                                                                                                              22,521 mt
  More brands are committing               Promising developments
                                                                                                                      India
                                                                                                                    59,470 mt
                                                                                                                                                 19%                        +56%
  to organic.                              from organic cotton                                                                                                              over 2015/16
                                                                                                                       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
Organic Cotton Market Report 2018 - Textile Exchange
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
2016 (the most recent statistics available). It’s useful to have    Textile crops                                                                         7.1m ha
                                                                                                                                                                                                       27.3m ha
these trends in mind as we dive into the growth trends in
                                                                                0m ha            1.5m ha   3.0m ha              4.5m ha
organic cotton in the remainder of this report.

                             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                                                                                                                                               $91.4b US
         organic farmers                                                    178 countries                                                                   global organic food market 2016
                                                                            in organic farming

           +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
Organic Cotton Market Report 2018 - Textile Exchange
Global organic
                   cotton production

BACK TO CONTENTS
Organic Cotton Market Report 2018 - Textile Exchange
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
                                               on our data processes, this is done
117,525 MT.
                                               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
Organic Cotton Market Report 2018 - Textile Exchange
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

                                                                                                 Conventional Fiber Production (MT)

                                                                                                                                                                                                                                                                                                     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

                                                                                                                                        5,000,000                                                                                                                                      50,000
  2008-09
                                                                                                                                                 0                                                                                                                                     0

                                                                                                                                                     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
  2009-10                                                                                                                                                                                                                                                                                  Conventional
                                                                                                                                                                                                                                                                                           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

                                                                                                 Fiber Production (MT)
                                                                                                                                                                                                                                                                                           EMENA &
  2014-15                                                                                                                               60,000                                                                                                                                             Central Asia
                                                                                                                                        50,000
                                                                                                                                                                                                                                                                                           Latin America
  2015-16                                                                                                                               40,000                                                                                                                                             & Caribbean
                                                                                                                                        30,000
                                                                                                                                                                                                                                                                                           South &
  2016-17                                                                                                                               20,000                                                                                                                                             Southeast Asia
                                                                                                                                        10,000
                                                                                                                                                                                                                                                                                           United States
                                                                                                                                            0
            0

                   50,000

                               100,000

                                                150,000

                                                                   200,000

                                                                             250,000

                                                                                       300,000

                                                                                                                                                 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

                      Anita Chester
                                                                                             each of the regions that we work in are
                                                                                             unique in their agro-climatic and socio-               Q          Where do you go from
                                                                                                                                                               here?
                                                                                             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
Q                                                                                            problem in India; it is a challenge even               a shift from philanthropic to market
        in its journey of its organic        have seen an income increase of over                                                                   based models. Simultaneously, we
        cotton program?                      25 percent compared to conventional             in countries where GMOs have not
                                                                                             been approved. This is not surprising                  will continue to support OCA’s work to
                                             farmers in the same areas, thanks to                                                                   bring the industry together and embed
The case for organic cotton may not be                                                       as research has mostly been biased
                                             around 50 percent decrease in input                                                                    newer business models in the sourcing
immediately evident, but its restorative                                                     in favour of GM cotton seeds, and
                                             cost. This, when the reported yield even                                                               operations of brands. These business
and regenerative nature presents                                                             there has been limited investment and
                                             after four years was 3 percent less than                                                               models are aimed at both improving
an incredible opportunity to radically                                                       research on indigenous cultivars.
                                             their conventional neighbours. Further,                                                                the business case for farmers as well
transform the textile industry’s impact
                                             a recent Life Cycle Assessment study            Other challenges include i) the lack                   as the integrity for brands. OCA will
on both the environment and farmers’
                                             supported by C&A Foundation reveals             of support systems for farmers that                    also coordinate industry investments
lives. In 2014, C&A Foundation began
                                             the substantially reduced environmental         enables access to good quality                         into areas, such as seed research
its journey of supporting farmers to
                                             footprint for organic cotton compared to        bio-pesticides and bio-fertilisers,                    and breeding. While actively engaging
adopt organic cotton farming practices.
                                             conventional.                                   and knowledge on organic cotton                        with agriculture universities, research
Already the foundation, along with
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     of policy level support                         Indian experience, teach us that there
                                                                                             is a lot to be done, and organizations                 For more information on the C&A
global organic cotton farmers.
                                                                                             need to come together and pool their                   Foundation’s work in organic see the
                                                     What have been the
In India, where C&A Foundation started
its organic cotton work, farmers             Q       lessons learnt in the journey
                                                     above?
                                                                                             collective resources and efforts to create
                                                                                             synergies.
                                                                                                                                                    Foundation’s 2017 Annual Report

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
                                              in 2017. In partnership with Izfas, it       This will be achieved through the co-       Textile Exchange has always striven to
ways to take action.
                                              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,
of organic cotton, encouraged by            Other brands are making strong
                                                                                      chain. Partners include the following       with 10 percent of the total volume being
growing evidence of the sustainability      commitments too, including (but far
                                                                                      stakeholder groups: business sector;        organic cotton. The aim is to increase
benefits of the fiber, and by the           from limited to): Skunkfunk, Stella
                                                                                      non-governmental organizations; trade       the proportion of sustainable cotton to
millennial generation bringing its buying   McCartney, and EILEEN FISHER,
                                                                                      unions; standards organizations; and        70 percent by 2025, with 20 percent
power to the market.                        who have all committed to sourcing
                                                                                      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
                                            Many more brands are committing to        most renowned clothing and textile          International Sustainability Unit would
targets for uptake of organic cotton.
                                            using organic cotton as part of their     companies, in the presence of His           close. Given this decision, it was agreed
Many are also part of public, group
                                            wider commitments to source all of        Royal Highness The Prince of Wales,         that Textile Exchange would take over
commitments such as the German
                                            their cotton from more sustainable        signed up to the 2025 Sustainable           the role of the initiative’s Secretariat, and
Textile Partnership or the Sustainable
                                            sources, such as those brands that        Cotton Challenge. In October 2017, 24       we are thrilled to help keep this great
Cotton Challenge. Such commitments
                                            have signed up to the Sustainable         more companies signed up at Textile         momentum going.
are driving change in supply chains
                                            Cotton Challenge or are part of the       Exchange’s annual conference. C&A
as brands invest in finding innovative                                                                                            If your company is interested in signing
                                            German Textile Partnership.               also joined in January 2018, bringing the
and long-term solutions to secure                                                                                                 up for the 2025 Sustainable Cotton
                                                                                      total number of companies to 38.
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
                                                                                                        are focused on integrity, supply, quality      Q       Where do you see OCA in
                                                                                                                                                               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,                                                                                                         stakeholder initiative dedicated entirely to
                                                                                                        to invest in programs and innovations
                           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
Q       Tell us about your vision for                                What are you most excited          enjoyment.
        the organic cotton sector                         Q          about doing in your new
                                                                     role?
                                                                                                        As we continue to come together as
                                                                                                                                                       recognizes there are many immediate
                                                                                                                                                       solutions that will lead to real impact in
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
                                                                                                        realize the full potential of organic cotton   Over the course of this year and the
that benefits everyone—from farmer to                     when the sustainable cotton sector is
                                                                                                        and its contributions for people, planet       next, it is OCA’s primary responsibility to
consumer. To drive this commitment,                       gaining that critical momentum to bring
                                                                                                        and long-term prosperity for generations       bring the sector together to leverage our
OCA Affiliates and Partners have come                     lasting change. Personally, I am humbled
                                                                                                        to come.                                       collective expertise, mobilize resources
together to make organic cotton a                         and honored for the opportunity to
                                                                                                                                                       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
the sector – addressing challenges
                                                          their lives to advancing organic cotton
                                                          from farmers to spinners, brands to           Q       learnings in the journey
                                                                                                                above?
                                                                                                                                                       solution from farmer to consumer.
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

                                                          Q
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                                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                                                                                                                                                                   IFOAM-Organics
                                                                                                                   OrganiMark
                                                                                                                                                                             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                                                              open market.                                                   Burkina Faso        S-M-L        0.60
reference price (this is usually the           The average price differential is
                                                                                                                                                                     China     L-ELS                     3.39
conventional cotton price quoted in the        somewhere between 5 and 20                   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
                                               percent or as large as 100 percent.                                                                                   Egypt L-ELS            1.39         4.13
commodity market at a set time)                                                             price arrangements with a buyer, partner
                                                                                                                                                                      India    S-M-L        0.72         1.90
and add a percentage increase to               The price differential is supposed to        company or organization, the price can
                                                                                                                                                                      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,
                                               •    Training and extension services                                                                              Tanzania      S-M-L        0.58
yet heavily influenced by conventional                                                      possibly machine cleaning and running
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                                                         at the growing stage where the majority                               Uganda       S-M-L                     1.52
                                               •    A percentage may also go
on the lint (ginned fiber) can range                                                        of the organic benefits are made.
                                                    towards the collective needs of                                                                                    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:
•    Market conditions and price                    health care, and housing
                                                                                            A World Beyond Certification: A best
     elasticity, and market variances (in                                                   practices guide for organic cotton
                                               •    Research, development and
     the supply and demand cycle)                                                           trading models, Textile Exchange and
                                                    investment in seed and farm
•    Quality and staple length                      innovations                             Kering, page 21-25.]

•    Country of origin                         The seed cotton price is the amount
                                                                                              Note: This organic cotton pricing tables above and over page provide estimated figures only, based on conversations
                                               paid for the harvested cotton bolls              with local experts. In 2016/17, according to our information, organic cotton prices ranged from US$/kg 1.45-3.33
•    Amount of trash or contamination          (with seed still attached). It is the seed      (average of 2.34) compared to the Cotlook Index that ranged from 1.71-1.95 (average of 1.82) over the same time
                                               cotton price that is most important                 period. Please refer to graphs over page, and accompanying text that explains factors affecting price, alongside
                                                                                                                                                                                              organic differentials.

BACK TO CONTENTS                                                                                                                                       ©                                           |   Page 17
ORGANIC SEED COTTON & ORGANIC LINT COTTON PRICES (2016/17)
Organic Cotton Lint Prices

                                                                                                                                                 0.4
                                                                                                                                                       0.6
                                                                                                                                                             0.8
                                                                                                                                                                   1.0
                                                                                                                                                                         1.2
                                                                                                                                                                               1.4
                                                                                                                                                                                     1.6
                                                                                                                                                                                           1.8
                                                                                                                                                                                                 2.0
                                                                                                                                                                                                       2.2
                                                                                                                                                                                                             2.4
                                                                                                                                                                                                                   2.6
                                                                                                                                                                                                                         2.8
                                                                                                                                                                                                                               3.0
                                                                                                                                                                                                                                     3.2
                                                                                                                                                                                                                                           3.4
                                                                                                                                                                                                                                                 3.6
                                                                                                                                                                                                                                                       3.8
                                                                                                                                                                                                                                                             4.0
                                                                                                                                                                                                                                                                   4.2
                                                                                                                                                                                                                                                                         4.4
The organic lint price is the market price                              USA organic upland averaged 2.55
of post-ginned cotton fiber. The seeds                                  USD/kg, around 40 percent over the                 Benin S      M    L
have been removed (for seed selection                                   Cotlook Index. USA organic Pima sold at
                                                                                                                           Brazil S     M    L
breeding or for processing by the                                       3.33 USD/kg.
organic food or feedstock sector). The                                                                               Burkina Faso S     M    L
fiber is compressed and baled for the                                   In India, sales of organic (short, medium,
textile industry. This is the product that                              long) fiber averaged 1.90 USD/kg,                     China L EL

feeds spinning mills, sold to spinners by                               around 7% more than conventional. ELS
                                                                                                                           China S      M    L
either farmers, ginners, or traders.                                    fiber averaged 2.15 USD/kg.
                                                                                                                              Egypt L EL
Turkish organic lint prices averaged                                    Peruvian organic (high quality ELS pima)
                                                                        lint prices averaged USD 2.79, but                     India L EL
2.17 USD/kg, ranging from 1.90 to
2.32 USD/kg, depending upon quality                                     prices varied through the year from USD
                                                                                                                            India S     M    L
and staple length. Turkish organic                                      1.95 to 3.63.
                                                                                                                      Kyrgyzstan S      M    L
fiber averaged 10 percent higher                                        Brazil produced Fairtrade organic cotton
than conventional prices on the Izmir                                   in North West of the country. The fiber             Mali S      M    L
Commodity Exchange.                                                     prices ranged between USD 1.80 and
                                                                                                                        Pakistan S      M    L
In China, organic fiber prices averaged                                 3.00 per kg, averaging 2.40 USD/kg.
                                                                                                                               Peru L EL
2.93 USD/kg (differentials ranging 15-35                                Organic fiber from Kyrgyzstan, Tajikistan
percent over conventional). Organic ELS                                 and Pakistan was priced between 1.45             Senegal S      M    L
prices averaged 3.28 USD/kg, up to 60                                   and 1.60 USD/kg.
percent higher than conventional ELS.                                                                                   Tajikistan S    M    L

                                                                                                                        Tanzania S      M    L
                               COMMODITY MARKET FOR CONVENTIONAL COTTON (2016/17)                                             Turkey M       L

                         3.0                                                                                                  Turkey S       M
                         2.5
                                                                                                                            USA S       M    L
                                                                                                          USA
   USD/Kg Cotton Fiber

                         2.0
                                                                                                          China                 USA L EL
                         1.5
                                                                                                          India

                                                                                                                                                 0.4
                                                                                                                                                       0.6
                                                                                                                                                             0.8
                                                                                                                                                                   1.0
                                                                                                                                                                         1.2
                                                                                                                                                                               1.4
                                                                                                                                                                                     1.6
                                                                                                                                                                                           1.8
                                                                                                                                                                                                 2.0
                                                                                                                                                                                                       2.2
                                                                                                                                                                                                             2.4
                                                                                                                                                                                                                   2.6
                                                                                                                                                                                                                         2.8
                                                                                                                                                                                                                               3.0
                                                                                                                                                                                                                                     3.2
                                                                                                                                                                                                                                           3.4
                                                                                                                                                                                                                                                 3.6
                                                                                                                                                                                                                                                       3.8
                                                                                                                                                                                                                                                             4.0
                                                                                                                                                                                                                                                                   4.2
                                                                                                                                                                                                                                                                         4.4
                         1.0
                                                                                                          Turkey                                                                                        US$ per kg
                         0.5
                                                                                                                                        Organic Seed Cotton Price (2016/17):                                       Range (Max/Min)                     Average Price
                          0                                                                                                                 Organic Lint Cotton Price (2016/17):                                   Range (Max/Min)                     Average Price
                               16

                                    16

                                             6

                                                 16

                                                       16

                                                             17

                                                                         ‘17

                                                                            7

                                                                            7

                                                                          17

                                                                          17

                                                                           7
                                         t ‘1

                                                                      r ‘1

                                                                      r ‘1

                                                                       l ‘1
                           g‘

                                    p‘

                                                 v‘

                                                      c‘

                                                            n‘

                                                                      y‘

                                                                      n‘

                                                                                                                                                  Fibre Length:   S Short   M Medium   L Long   EL Extra Long
                                                                    b

                                                                    Ju
                                         Oc

                                                                   Ma

                                                                   Ap
                                              No

                                                                   Ma
                                                      De

                                                            Ja

                                                                   Ju
                         Au

                                Se

                                                                 Fe

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
                                                Belbeis / Fayoum Elbeheira                                        Izmir                                        Gansu
Texas                                                                                 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
                                                                                                                                                                M MIC:4.7 | YC:34-40Ne
BRAZIL
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
                                                                                                                                                                 L   EL MIC:2.2-3.8 | YC:40-120Ne
Tarapoto
 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                                     Gujarat
 Fiber Length             Accronyms                                   M YC:20-40Ne           SENEGAL                M YC:20-40Ne
                                                                                                                                                                 S    M MIC:3.2-4.5 | YC:10-40Ne
 S Short           MIC = Fiber Micronaire                                                    Koussanar, Senegal
                                                                                             M YC:20-40Ne
M Medium           Ne = YC unit - English                            BURKINA FASO
                   System (1 Ne = 1 Hank/ lb)
                                                                                                                    UGANDA                                      PAKISTAN
 L Long                                                              Bobo Dioulasso
                   YC = Yarn Count                                                                                   M    L    YC:20-60Ne                        M    MIC:3.5-4.9 | YC:24-36Ne
                                                                      M YC:20-40Ne
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
2+ S + 98
 Africa
                                                                                                                                 MALI
                                                                                                                                                  REGIONAL PRODUCTION

                                                                                                                1+99+S
                                                                                                                 SENEGAL

                                                                                                                                             13+87+S
                                                                                                                                130 MT        UGANDA

                                                                                                                  4 MT
                                                                                                                                              765 MT
                          24,380                         46,555                               29%

                                                                                                                                                           0+100+S
                                                                                                                                                             ETHIOPIA
                        Organic Farmers                Organic Certified                   Fiber (MT)
                                                          Land (ha)                   Year-On-Year Growth
                                                                                                                                                                 In
                                                                                                                                                             Conversion

                           5,863                         18,978                              5%
                        Organic Cotton               Organic In-Conversion           Share of Global Organic
                          Fiber (MT)                       Land (ha)                   Cotton Production

                                                                                                                 8+92+S
                                                                                                                 BURKINA FASO

                                              5-YEAR PRODUCTION TRENDS
                                                                                                                    491 MT
                         4,000

                                                                                                                  12+88+S
                                                                                                                                BENIN
                         3,500                                                                   Benin

                         3,000                                                                   Burkina Faso
                                                                                                                                699 MT
Fiber Production (MT)

                         2,500                                                                   Mali

                                                                                                                                                 64+36+S
                         2,000                                                                   Senegal                                           TANZANIA
                         1,500                                                                   Tanzania
                         1,000                                                                   Uganda                                                3,773 MT
                          500                                                                    Madagascar
                            0
                                 2012-13   2013-14         2014-15         2015-16     2016-17

 BACK TO CONTENTS                                                                                                                        ©                    |   Page 21
Africa

                                                                                                                                                                 Tanzania
                                                                                                                                                      Senegal
                                                                                                                                  Burkina

                                                                                                                                                                                  Uganda
                                                                                                                         Benin

                                                                                                                                    Faso

                                                                                                                                              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
combined with training and support                                                               Organic Cotton
                                              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),
decreased by 2 percent, production            continues to support farmers of the
                                                                                                                         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
countries accounted for the majority (53      in an impressive yield increase of 63
                                                                                                                        0.6%      0.4%       0.1%    0.004%     3.2%             0.7%
and 37 percent, respectively) of West         percent in 2016/17. RECOLTE is also
                                                                                            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                  producing regions. The availability of
                     Sourcing Working Group
                                                                                        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
Q                                            other regions where intensive farming of                                                          term we will see the development and
       Why Africa?                           conventional cotton has been the norm.
                                                                                        from NGOs, brands and retailers,                       growth of a high quality supply chain.
                                                                                        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
organic cotton, but no one really knew
                                             of garments to organic cotton certified
                                             to GOTS and OCS standards. So              Q       Where next?                                    needs to be developed so that much
                                                                                                                                               needed value addition is kept within
how to connect and where to go. As a         we know that it is possible albeit not                                                            the region, bringing with it technology,
                                                                                        Sub sahara Africa is diverse and young
result the Pan Africa Sourcing Working       without challenges and hope to act as                                                             employment and development. The
                                                                                        – the average age is 18 compared with
Group was created to map, connect            an example and source for other brands                                                            work Mantis World is doing with vertically
                                                                                        the average age in Europe of 40. So
and grow sourcing of organic cotton and      and retailers.                                                                                    integrated factory Sunflag Tanzania
                                                                                        many of tomorrow’s consumers and
sourcing in Africa. The interest in the                                                                                                        keeps the whole value chain in one

                                             Q       How Far have we come as            innovators will be African. I hope to see
work of the Group demonstrates clear                                                                                                           country in Africa and so we know that
                                                     an industry?                       consolidation and growth of trade within
signals for growth and understanding of                                                                                                        it is possible. What will be needed is
                                                                                        the region as African consumers will
this sector.                                 Interest in the region has never been                                                             more investment along with a favourable
                                                                                        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 Materials@TextileExchange.org.

BACK TO CONTENTS                                                                                                                     ©                              |   Page 26
You can also read