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Organic Cotton Market Report 2020 Covering production trends and initiative updates from the 2018/19 harvest year.
Organic Cotton
Market Report 2020
Organic farming is a way of living in harmony with the land and is a
way to honor life – life in the soil for the farm, for the family, for the
community, and ultimately for the world. In times like the COVID-19
pandemic, we are reminded just how connected we are to each other
- we are an ecosystem, and what we do impacts the whole.
We, as an industry, need to cross the threshold from minimizing harm
to maximizing positive impacts. This means stronger investments
in building soils, ecosystems, and biodiversity. We need to truly
embrace and support regenerative practices in order to deliver to the
promise of a world transformed! Together – we can do this!
La Rhea Pepper
Managing Director for Textile Exchange
and life-long organic cotton farmer
Contents Cover photo: Farmers respect new hygiene and social distancing requirements during a COVID-19 awareness program © Suminter India Organics. • 2
Welcome
to the 2020 Organic Cotton Market Report
Organic agriculture started as a response to “lock-down” are behind us, but the situation is
Call to action
biodiversity loss, symbolized by the decline of far from over. Responding to immediate health
the American bald eagle due to the heavy use and safety has been the priority. But just as Move from commodity cotton to a networked community.
of toxic pesticides in the 1950s. Fast-forward important is the need for business sustainability. The days of anonymous supply chains are over. Transparent business
and we find ourselves amid a global pandemic Livelihoods (and lives) depend on a just relationships build trust and long-term resilience.
- again, a result of our continued degradation economy working for us all. Over the next few
and destruction of biodiversity. COVID-19 is months, perhaps even years, business planning
another, albeit more powerful, reminder of the and relations will be challenging and difficult to
Embrace diversity and complexity.
fundamental importance that a functioning "web predict. For cotton farmers, that unpredictability Don’t sit in a darkened room to find the answers – diversity and
of nature" is to our survival. Rachel Carson, the will impact the next growing cycle and, for textile “systems thinking” will spark the best solutions. Think about all 17 of
scientist credited with connecting the loss of manufacturers, brands, and retailers, the next the Sustainable Development Goals.
species to pesticide use all those years ago, uptake and consumption cycle. One thing that
would probably not be surprised to hear of our is for sure is that the “new normal” will require
Communicate with your business partners.
latest ecological crisis. But she would not have much more transparency and sharing of the risks
Pick up the phone or better still set up a video call (turn the camera on!)
given up, just as we should not either. and rewards as we collectively aspire to “Climate
Action” as well as the other 16 Sustainable and share “what’s it like for you” experiences. The challenges are two-
Yes, COVID has shaken us up afresh, and a Development Goals. Communication and trust way – so is empathy and partnership.
renewed call to action - that considers both will be key.
COVID and climate - is necessary. In the words
Adapt and innovate.
of Dr. Helen Crowley, the biologist and textile There’s a lot to do, but, for now, let’s take
industry specialist behind Kering’s sustainable a moment to applaud “Team Organic” - all Change is hard, and right now, the global pandemic is forcing change
sourcing and biodiversity strategy, those working to grow the market for organic upon us. Use this situation as an opportunity to re-imagine the purpose
cotton and agro-ecology more broadly. From of business and “build back better.”
“Organic cotton production – at its best – is the farmers to the manufacturers, certifiers,
a ‘proof of concept’ for the significant and extension workers, NGOs, brands, retailers, and
strengthening focus and effort on restorative Work together.
consumers THANK YOU for your dedication
and regenerative practices for agriculture. It’s a common mantra – but can never be said too many times.
and contribution to this good growth. And
Re-building soil health, water cycles, congratulations – we are doing the right work! Collective action is needed for inclusion, scale, and acceleration. Bring
protecting biodiversity both above and below Enjoy the report. everyone together to align solutions.
soil across our ‘working lands’ is essential
for our future and is key to the nature-based
Build on common ground.
approaches that comprise over 30 percent of Liesl Truscott
Whether you call it “regenerative,” “organic,” or “sustainable” … we are
the solution for climate.” Director of European
all on the same journey. Move from minimizing harm to maximizing the
Our 2020 Organic Cotton Market Report comes & Materials Strategy,
positive impacts. Think holistically.
to you as the first experiences of the COVID-19 Textile Exchange
Contents • 3
The year in numbers
2018/19 organic cotton production snapshot
KYRGYZSTAN 10%
TAJIKISTAN 5%
TANZANIA 2%
TURKEY 10%
CHINA 17%
USA 2%
INDIA
222,134 418,935 31 % 51 %
Organic certified Organic cotton fiber
Organic cotton farmers
land (ha) (over 2017/18)
239,787 55,833 19
Organic cotton Organic in-conversion Countries growing
fiber (MT) land (ha) organic cotton 97 percent of global production stems from the
above seven countries
The rest comes from: Uganda (1.08%); Greece (0.49%);
Benin (0.42%); Peru (0.23%); Burkina Faso (0.19%); Pakistan
India and
Global growth continues for organic fiber (0.17%); Egypt (0.12%); Ethiopia (0.05%); Brazil (0.04%);
Pakistan
Mali (0.03%); Argentina (0.005%); and Thailand (0.003%). A
The significant growth seen last year, when global organic top for in-
total of 19 countries grew organic cotton in 2018/19.
cotton production rose 56 percent, continues this year with a conversion
further 31 percent growth. Estimates show this will continue in
India and Pakistan
2019/20, though to a lesser degree of around ten percent.
India fuels this year’s global growth have the most land
in-conversion to
India was by far the biggest contributor to global growth this organic, followed
Growth in certified facilities accelerates year, adding 37,138 MT to the global total. Turkey, Tajikistan, by Turkey, Greece,
China and Uganda were also significant contributors. and Tajikistan.
2014-15
2015-16
2016-17
2017-18
2018-19
Facilities certified to leading voluntary organic textile
standards grew significantly between 2018 and 2019;
by 48 percent for OCS and 35 percent for GOTS. Organic Fiber Production (MT)
TOP FIVE BY TOP FIVE BY
42+31+11547F
FIBER VOLUME INCREASE IN-CONVERSION LAND AREA
India: 37,138 MT India: 23,251 ha
Second biggest harvest on record
h 48% Turkey: 9,945 MT Pakistan: 17,632 ha
Turkey: 6,148 ha
2018/19 saw the second biggest harvest of Tajikistan: 3,180 MT 55,833 ha
Greece: 2,592 ha
organic cotton ever recorded, surpassed only China: 2,661 MT Tajikistan: 2,226 ha
h 35% marginally in 2009/10. Uganda: 1,816 MT Others: 3,984 ha
Contents • 4
This report is interactive. Navigate using
What’s inside this page and return using the “Contents”
button at the bottom of each page.
Important notes about this report 6 Ethiopia 34 Tajikistan 61
COVID-19: voices from the sector 8 Tanzania 35 Turkey 62
The climate emergency 9 Uganda 37 Uzbekistan 64
Understanding regenerative 10
Latin America & the Caribbean 38 South & Southeast Asia 65
Non-GM seed development 11
Regional overview 39 Regional overview 66
In-conversion (transitional) cotton 12
TEam insights 40 TEam insights 67
Spotlight on pricing 14
Argentina 41 India 68
Market signals 17
Brazil 42 Pakistan 74
Organic Cotton Round Table 18
Peru 43 Thailand 75
Organic Cotton Producer Directory 19
Myanmar | In-conversion 76
Insider Series 20 North America 44
TEam insights 45 Standards & Certification 77
Global organic cotton production 21
USA 46 OCS & GOTS certified facilities 2019 78
Global overview 22
Organic Content Standard 79
East Asia 49
Sub-Saharan Africa 24 Global Organic Textile Standard 80
TEam insights 50
Regional overview 25
China 52 Methodology & Disclaimer 81
TEam insights | West Africa 26
Second Regional Organic Cotton Round Table 27 EMENA, Central & Western Asia 55 Appendices85
Benin 28
Regional overview 56 Textile Exchange membership 86
Burkina Faso 29
TEam insights 57 Further resources 87
Mali 31
Egypt 58
Senegal 32
Greece 59
TEam insights | East Africa 33
Kyrgyzstan 60
• 5
Important notes about this report
Every year, the sustainability context places working hard to meet the principles ground program work regarding the Textile Exchange collects fiber production
changes and public expectations shift. of organic "beyond certification" - often production of organic cotton or any data and reports it as an industry resource.
This year, that shift has been exceptional within complex constructs of entrenched other fiber in any country, nor make Because China, and Xinjiang in particular, is
in ways we could not have anticipated, and worrying political administrations and recommendations for preferred sourcing a key producing region, leaving its reported
leading to an eruption of social and limited transparency. locations. production out of this report would result
environmental sustainability concerns. in the report not being truly representative
The report was written with these Textile Exchange owns the Organic of the global organic cotton supply. We
COVID-19 shines a spotlight on public challenges in mind, and we want to clearly Content Standard (OCS) which confirms believe it is important that our readers
health, biodiversity, zoonotic diseases, state from the beginning that it aims to that organic material certified to a national understand the current situation in Xinjiang
and climate change, while concerns about share the best available data, within a organic standard within the IFOAM Family so that they can make informed choices
equality, human rights, and labor practices transparent methodology. We welcome of Standards is indeed present in finished about their sourcing strategies.
are undeniably equally pressing issues. feedback and an ongoing dialogue so that products. Textile Exchange also owns the
Sustainability standards are constantly we can continually improve our processes Content Claim Standard (CCS), which is Textile Exchange works to accelerate
evolving and improving as a result, but the and deliver valuable information to our the chain of custody foundation of the OCS environmentally sustainable practices in
sector must maintain the parallel tracks community. and all of Textile Exchange's standards. the textile value chain. This goes hand-in-
of rules-based accreditation and public The CCS provides companies with a hand with social responsibility expectations
opinion-driven response mechanisms in The future will require greater transparency tool to ensure that one or more claimed to ensure that the rights of all people,
order for organic agriculture to remain a and the sharing of both risks and rewards materials are in a final product. particularly workers, are respected.
tool for change. as we collectively aspire to “Climate
Action” and the other 16 UN Sustainable
This report reflects these parallels, with Development Goals. Communication, trust, What is Textile Exchange doing to stop human rights violations in the industry?
insights into some of the people and and commitment will be key.
• Recommending stronger criteria be included in the Content Claim Standard (CCS),
which would then apply to all Textile Exchange standards.
Textile Exchange statement on the reports of forced labor
– As an interim step regarding unacceptable practices prior to a full standard revision,
Textile Exchange is concerned about the Textile Exchange reports data on certified the CCS Certification Procedures (released June 1, 2020) has a new allowance for
disturbing reports of forced labor in the organic cotton production that has been certification bodies to take action should they witness unacceptable practices.
Xinjiang region of China, where most of submitted to us, analyzed, and cross- » The certification body should issue a critical non-conformity to any organization
China’s organic cotton is grown, as well as referenced in accordance with our or site where evidence suggests that any of the following practices (collectively,
reports of forced and child labor in other Methodology. We include the data received the unacceptable practices) are occurring:
parts of the world that have occurred over from every producing country in the
the past several years. Organic Cotton Market Report to create a ¤ The worst forms of child labor, as defined by ILO C182 – Worst Forms of
complete picture of the global supply. Child Labour Convention, 1999 (No. 182); or
Textile Exchange does not condone forced ¤ Forced labor, as defined by ILO C029 – Forced Labour Convention, 1930
or child labor. Textile Exchange does not perform (No. 29).
certification work itself, provide on-the-
Back to Contents • 6
Important notes about this report
This is currently treated as a recommendation and is not required to be audited A summary of Textile Exchange's data collection methodology
against. The discussion of whether this becomes a mandatory auditing requirement
will be addressed with the International Working Group during the CCS revision. Textile Exchange collects and reports In selected cases, where data can only
production of certified organic cotton data be obtained from one source, triangulation
– Another interim step is the allowance to include "country/region of origin" of the
from Accreditation Bodies, Certification and validation of data may not be possible,
raw material on transaction certificates. Again, before this becomes mandatory, a
Bodies, Organic Cotton Producers as well and the data is accepted as it is. In our
required review and feedback period is required. If this information is carried forward
as other stakeholders on an as-is basis. Methodology, you will find a table that
on all transaction certificates, it would allow companies to make sourcing decisions
Data reported is intended as a snapshot of provides a breakdown of data sources
of their own that may be out of the scope of Textile Exchange standards. To join this
production and makes no representation used for each of the 34 countries analyzed
revision process, contact us.
on total supply. While Textile Exchange in the preparation of this report, alongside
• We encourage companies to be part of the solution to systemic problems by: carries out a systematic completeness a confidence level on the data received
– Making long-term investments and prioritizing supply chain transparency. and accuracy check on its data collection based on results of triangulation.
process; we rely on our data providers for
– Adhering to globally recognized, credible, third-party social standards that prohibit Reported land area: Another important
data accuracy and integrity. Where data
the use of forced or child labor, and take immediate action to identify, prevent or point to note is that the land area figures in
gaps exist, Textile Exchange attempts to
mitigate, and account for how actual and potential adverse impacts are addressed. this report refer to total land area certified
replace these values with best estimates
This may include sourcing elsewhere when expectations are not met. to an organic standard by a producer
from historical or comparable proxies.
– Using economic power to push for policy changes that support human rights. Data submitted may change due to group growing organic cotton. The same
corrections or updates from data sources. piece of land could be, and increasingly is
– Seeking advice from organizations with expertise on social and/or labor issues,
See Methodology for detail of recent data being, used to grow other organic crops
such as the Fair Labor Association (FLA) and Organisation for Economic Co-
revisions made. in addition to cotton as part of a rotation
operation and Development (OECD), to make the most environmentally sound and
system; a fundamental element of organic
socially just sourcing decisions.
For the purpose of this Organic Cotton agriculture. This means that reported
Market Report, organic cotton does not land area figures do not necessarily
Textile Exchange will hold a breakout session on this topic at its annual conference include any uncertified naturally grown reflect the land area used to grow only
in November and will continue to track the situation while reporting on organic cotton cotton, nor does it make any statement organic cotton and, as a result, may seem
production worldwide. regarding the integrity beyond its disproportionately high compared to the
certification, and reported numbers, as organic cotton volumes harvested.
Textile Exchange’s overall intent is to work together as an industry to invest in a future that submitted by our data providers.
supports cotton production methods that protect both the planet and all its people.
Back to Contents • 7
COVID-19: voices from the sector
What does the pandemic mean for organic cotton?
The pandemic has acted as a roadblock to the status quo, giving an In Burkina Faso, Senegal, Mali, and Benin, the conclusion of the 2019/20
important opportunity to reflect, and a rare chance to take a different growing season is being dragged out as the ginning has come to a stop
path in the future. As a stark reminder of how interconnected and inter- because of COVID-19. It becomes harder to find buyers because of
dependent the world is, there is now an opportunity to put organic at the insecurities along the value chains. Medium-term impacts might influence
forefront of a sustainable recovery from the crisis. We’re already seeing producers as a knock-on effect across the supply chain. The planning of
that sustainability has shot up the agenda for citizens and consumers, next season is also influenced as some procedures have been stopped,
with many brands and retailers likewise seizing the moment to reaffirm for example, in Senegal. However, the combination of organic cotton
their commitment to sustainability. farming with the production of rotation crops presents an opportunity for
producers in times where COVID-19 threatens food security. The CCBE
also sees an opportunity in the disruption of the textile industry as it could
Sarah Compson
create windows of opportunity for collaborative business models.
International Development Manager
Soil Association
Fabienne Krebs
Hear more from Sarah in our Insider Series interview.
Project Support
ecos/Organic & Fairtrade Cotton Coalition West Africa (CCBE)
Hear more from Fabienne in our Insider Series interview.
In times of considerable uncertainty and tumult, security and stability are
the necessary antidotes, and our Farmer Engagement and Development
(FED) Programme remains committed to providing a secure market
for our organic cotton farmers. OCA and all our partners in the FED A duty of “all-holder-value” partners is the responsibility we feel for all
Programme will be working closely to manage the anticipated challenges members in the production chain, including the farmers. Together, we
for organic farmers such as health risks, price volatility, changing demand, want to overcome this uncertain time and want to come out stronger.
travel restrictions, and access to vital farm inputs. Now is the time to show that all partners, from fiber to fashion, including
consumers, can rely on us to make the right decisions.
Bart Vollaard
Executive Director
Simon Hohmann
Organic Cotton Accelerator
Co-CEO Finance, Cotton & Yarn
Hear more from Bart in our Insider Series interview. Remei AG
Read OCA's article on the impact of COVID-19 on organic cotton.
Back to Contents • 8
The climate emergency
Textile Exchange 2030 Strategy: Climate+
What’s organic cotton’s role in climate How are farmers adapting to a changing Textile Exchange announced its new 2030 Strategy “Climate+” during its
change mitigation? climate? annual Textile Sustainability Conference that took place in Vancouver in
Organic production plays a pivotal role in While organic farming practices have a October 2019. Under the Climate+ strategic direction, Textile Exchange will
the fight against climate change. Organic positive impact on the climate, and organic be the driving force for urgent climate action with a goal of 35-45 percent
farming systems are known to be more agriculture is known to be more resilient reduced CO2 emissions from textile fiber and material production by 2030.2, 3
effective than conventional systems at to climate shocks than conventional
The 2030 Strategy: Climate+ was the result of extensive stakeholder
capturing CO2 from the atmosphere and agriculture, organic farmers are not spared
sequestering it in the ground as soil organic the negative impacts of a changing climate. engagement through interviews and an online survey conducted with a
matter. As a result, the soil carbon pool is mix of Textile Exchange members and non-members from organizations
approximately three times larger than the Farm groups are finding ways to adapt their representing brands, retailers, suppliers, manufacturers, nonprofits, and
atmospheric pool.1 See our Insider Series practices to reduce the impact, and many professional services across the globe.
for some great examples of how organic examples of this are included throughout
this report and in our Insider Series. For years, Textile Exchange has promoted practices, standards, and
cotton is proving a powerful tool in climate
change mitigation. resources that benefit the climate. Adopting the Climate+ strategy makes
climate a deliberate priority and organizational focus for an impact area that
requires immediate attention and for which we have many existing tools and
The threats caused by climate change are all-encompassing and are resources. The “+” in Climate+ allows Textile Exchange to prioritize climate
already impacting the most vulnerable. This is true in relation to both while continuing to address other impact areas that are interconnected with
people and ecosystems. Organic agriculture can help to mitigate climate climate in most situations (e.g., water, biodiversity, soil health). The “+” is also
change, not only by storing carbon in the soil but also through direct an acknowledgement that Textile Exchange cannot achieve this new 2030
on-farm benefits. For example, organic techniques promote resilient soils goal of 35–45 percent reduction in CO2 emissions from preferred fiber and
that can more easily withstand extreme weather through locking in water material production on its own. Achieving the 2030 Strategy: Climate+ goal
and nutrients. Also, the central practice of crop rotation leads to a range will require strong partnerships to accelerate adoption of existing tools as
of crops being grown, which gives farmers a safe source of food and well as enable disruptive innovation around new business models and zero
alternative incomes if cotton crops fail. carbon materials.
Textile Exchange’s full Strategic Plan will be launched during our (now virtual)
2020 Textile Sustainability Conference, November 2–6, 2020.
Sarah Compson
International Development Manager
Soil Association 1
Oelkers, E. H. & Cole, D. R. Carbon dioxide sequestration: a solution to the global problem. Elements 4, 305-310 (2008)
2
Scope is pre-spinning. Measured from a 2017 baseline; subject to Science Based Targets validation
Hear more from Sarah in our Insider Series interview. 3
The range reflects the additional work we would like to do to ensure our target is aligned with a 1.5-degree Celsius scenario
(defined by the UN IPCC), aligned with Science Based Targets as well as with the UNFCCC Fashion Climate Charter.
Back to Contents • 9
Understanding regenerative
What do we mean by the term “regenerative”? The financial sector pushes for regenerative practices
The term “regenerative” is increasingly a
feature of conversations about sustainable Which agriculture system performs best within the known planetary
or preferred fiber choices, and you’ll see boundaries? Can we do without glyphosate and genetic engineering? Is
it frequently featured in this report. To organic for the rich only or does it have the potential to be meaningful at
get to the heart of the matter, we need
scale? There are many controversial and not always objectively discussed
to understand the difference between
questions.
Regenerative Practices and Regenerative
Agriculture. When utilizing Regenerative One thing is clear, though; any future agricultural system must be able to
Agriculture in cotton and cultivated deal with the changing climatic conditions. The Allianz insurance states
production systems, farmers use a holistic
the following risk in their 2018 report on natural capital: “Local flora and
approach.
fauna suffers as a result of excessive fertilization and pesticides used at
Regenerative practices usually address a supplier’s plantations. At the same time, the area becomes less fertile
single element or set of practices within and more vulnerable to external environmental impacts. The supply
the system. Regenerative agriculture is a from plantations becomes more expensive and volatile, creating regular
holistic philosophy that aims at positively interruptions in the supply chain. Enterprise risk management addressing
influencing biosequestration, biodiversity,
the supplier’s plantation management practices from an environmental
ecotoxicity, climate resilience, water
sustainability perspective is necessary.”
systems, micronutrients, and ecosystem
services. Standard practices include no- or This clearly calls for regenerative farming practices, increasing agricultural
low-till plowing, cover cropping, multi-use resilience and stability of supply, and reducing the overall economic
systems, agroforestry, rotational farming, ecosystem and farmer economic stability risk of farms and supply-chains. The Big 4 (Deloitte, EY, KPMG,
precision agriculture, integrated pest can be improved. This is regenerative PricewaterhouseCoopers) as well as Standard & Poor’s, banks and
management, and intentional use of inputs agriculture.
that are landscape specific. others, follow the same logic, redefining creditworthiness of companies
Keeping the concept of regeneration and farms, corporate ratings, or insurance policies.
Regenerative agriculture is not a “one and continuous improvement at
size fits all” prescriptive practice. Instead, the forefront of cotton production
it looks at the combination of methods systems is essential to address the key
that support resilience as well as build Tobias Bandel
challenges we need to tackle over the
and nourish our ecosystem. Over time, Managing Partner
next ten years.
regenerative practices can increase Soil & More Impacts
production and naturally reduce the For more detail on regenerative programs,
need for external inputs. When these see pages 77–78 of our 2025 Sustainable
regenerative practices are implemented Cotton Challenge Second Annual Report
successfully, the health of the agriculture 2020.
Back to Contents Photo: © Dinesh Khanna for Laudes Foundation • 10Non-GM seed development
Progress and updates
Access to non-genetically modified (GM) land area was planted with biotech cotton cultivar testing and seed multiplication. candidate varieties for organic cotton
seed suitable for growing organic cotton in 2018.1 In addition, OCA recently facilitated the production since 2017. Following
is crucial for ensuring both integrity and development of guidelines for non- 2020 testing, ten candidate varieties
growth of organic cotton production. Still, GM contamination of organic cotton crops GM cottonseed production, and is will be ready for demonstration plots
remains a critical issue in certain regions, remains an issue in countries where GM planning to expand its Seed, Integrity on certified organic farms in 2021.The
particularly India, Pakistan, and China. dominates the cotton landscape. Causes and Community Investment (SICI) last steps are to get cotton seed best
of GM contamination include: accidental Programme to other key producing suited particularly to organic farming in
The global land area planted with GM use of GM seed; cross-pollination from countries. Read more > the Southwest USA for the farmers to
cotton increased 3 percent in 2018; from neighboring crops; contamination from grow. Read more >
24.1 to 24.9 million hectares. Based on a farm equipment; and accidental mixing • Texas A&M AgriLife Research in
global cotton area of 32.9 million hectares, during storage, transport, or ginning. Lubbock, Texas, has been testing
this means that 76 percent of global cotton
While much more investment in organic
seed production is needed, there are a Textile Exchange releases White Paper on GM cotton in Africa
number of programs around the world
that are making significant headway in In light of the adoption of genetically
improving access to seed for organic modified (GM) cotton in seven countries
farmers. In this report, you will find updates in Africa, Textile Exchange’s Pan-Africa
from some of these projects, such as: Sourcing Working Group issued a white
paper, “Cotton in Africa: Sustainability at a
• Fairtrade and Pratibha Syntex have Crossroads,” addressing the arguments
just launched the second phase of their for organic and other non-GM cotton
non-GM seed hybridization project in production methods and the risks of
India. The objective is to develop new expanding GM cotton on the continent. A
non-GM hybrids that have the specific draft abridged version was presented by
fiber parameters that the fashion and Marco Paul, Co-CEO of bioRe Tanzania
textile industry needs. Read more > Ltd., on November 27, 2019 at the National
• Organic Cotton Accelerator and Ecological Organic Agriculture Conference
FiBL are working together in India in Dodoma, Tanzania.
on “Seeding the Green Future” - an
The full white paper was released on
organic cotton breeding program
June 9, 2020, and is available here. It has
that is developing new and improved
since been disseminated accross the textile industry and the African continent to
cotton cultivars well-suited for organic
raise awareness about the potential of preferred and organic cotton.
farming conditions, while scaling up
1
ISAAA. 2018. Global Status of Commercialized Biotech/GM Crops in 2018. ISAAA Brief No. 54. ISAAA: Ithaca, New York.
Photos: (left) © Pre-Organic Cotton / ITOCHU, India;
Back to Contents (right within cover image) © Stefan Lechner for Fairtrade International • 11In-conversion (transitional) cotton
Six frequently asked questions
One of the greatest opportunities for “transitional” period, which varies in time Greece, and Tajikistan. By region, land a percentage of transitional fiber in a key
increasing the supply of organic cotton based on the organic standard being area of in-conversion cotton was highest program. This will increase both the supply
(and other natural fibers) lies in programs applied. For example, the E.U. requires in South Asia (40,892 ha), followed by and demand for organic production while
that support farmers along their journey to 24 months,1 while the USA requires 36 Europe, Middle East and Central Asia having a minimal price impact on the final
organic certification by providing labeling- months.2 During that period, all inputs and (EMENA) (11,069 ha), Africa (1,661 ha), products.
based programs during the period when practices prohibited in organic farming Latin America (1,272 ha), China (710 ha),
farmers are converting, or transitioning, to
certified organic production.
apply, and certification bodies conduct
annual audits as per international organic
and the USA (230 ha).
6 Which standards support in-
conversion organic fiber claims in
In-conversion programs:
agriculture standards.
4 How much does in-conversion
cotton cost?
finished products?
2 Which standards support Voluntary textile standards also support
• ensure that future organic volumes are in-conversion organic fiber As is the case for certified organic cotton, the creation of an in-conversion supply
available to meet growing demand; production? in-conversion cotton should include a chain from field to finished products. The
• provide verification of claims permitted price differential over conventional cotton leading organic textile standards - Textile
along the supply chain from field to Some national and private organic to cover the farmers’ cost of production, Exchange’s Organic Content Standard
finished product; standards, such as that in India,3 recognize organic certification, training and extension (OCS) and the Global Organic Textile
claims made about fiber and finished services, and investment in farming Standard (GOTS) - both establish a chain
• encourage a price differential over products and allow the use of terms such operations. The cost should reflect the cost of custody for the certified organic or
conventional cotton; as “organic-in-conversion.” However, of production and viability of the business in-conversion fiber from field to finished
• increase stability for farmers during other national programs, such as the USA versus being based solely on commodity product.
the conversion; and program, do not.4 As such, you must pricing. See our Spotlight on pricing for
confirm with each national organic standard more detail. The standards permit the labeling of in-
• increase education and understanding conversion fiber products – if allowed in the
to be certain what claim may be made on
5
as to how to attain, and retain, organic Why should I use in-conversion country of sale and production. It is vital to
certification. both fiber and finished products.
fiber? research the requirements of the countries
3 Where is in-conversion cotton
grown? To increase the production of organic
in which the products are grown and sold
to determine if such claims may be labeled
1 What is the process of converting
to organic? In 2018/19, farmers grew 34,566 metric
cotton, Textile Exchange urges companies
to incorporate in-conversion fiber into their
on finished products.
The establishment of an organic tons of in-conversion cotton on 55,833 ha. supply chains. This will help to ensure
management system requires an interim India and Pakistan have the most land in that future organic volumes are available Textile Exchange launches new
period, known as the “in-conversion” or conversion to organic, followed by Turkey, to meet growing demand. Farmers need In-Conversion Working Group
financial incentive to undergo the costs
of converting to organic practices and See Organic Cotton Round Table
1
European Commission, Becoming and organic farmer: The principles. Reviewed June 19, 2020.
2
US Department of Agriculture, Guide for Organic Crop Producers. 2012. certification. One proven strategy to section for more detail.
3
India Department of Commerce, National Program for Organic Production. May 2005. support the years of conversion is to blend
4
Washington State Department of Agriculture, Certified Transitional Program. Reviewed June 19, 2020.
Back to Contents • 12In-conversion (transitional) cotton
Program insights
ARMEDANGELS is a fashion brand, headquartered in Germany, with We at Bergman/Rivera have continued to work directly with farmers to
a mission to combine fair working conditions and sustainable, high increase the area of organic cotton grown in Peru. The Transitional Cotton
quality materials with beautiful design. The company founded the Project has been pivotal to achieving success on this front. By bringing
ARMEDANGELS Organic Farmers Association in April 2018 to help more brands on board that are aligned with promoting transitional cotton,
almost 366 smallholder farmers in the Kutch area of Gujarat, India, switch we were able to compensate farmers with premiums during their first year
from conventional cotton to organic cotton. The cotton fiber is sold of transitioning to organic. During this period, farmers need to adjust their
through the company’s long-term partner, Suminter India Organics. As of way of working, plus see a reduction in their yields. Being able to market
the first year of the conversion, the farmers receive: this cotton for what it is: “organic without certification,” farmers can get a
premium [price differential].
• A staggered ARMEDANGELS organic premium (2 percent the first
year of conversion, 3 percent the second year, and 4 percent the third
year). Orlando Rivera
General Manager
• Access to free, high-quality, non-GM seeds.
Bergman Rivera
• Training and technical support from Suminter staff.
Hear more from Orlando in our Insider Series interview.
• A purchase commitment from ARMEDANGELS for the cotton fiber
once certified organic.
Working together in this cooperative arrangement is a key component To have enough organic cotton to address demand, it is important to
of the plan. More than 50 percent of smallholder farmers give up on promote the expansion of organic cotton cultivation by promoting both
conversion to organic cotton within the first year as they cannot do it in-conversion and organic cotton production. To make the in-conversion
alone. cotton market sustainable, the next step is to build a bigger collaborative
supply chain with apparel brands to encourage sustainable consumption
Lavinia Muth
and promote in-conversion cotton.
Corporate Responsibility
ARMEDANGELS Nobuyasu Nakamura
Hear from Suminter about this collaboration in our Insider Series. Sales Specialist
ITOCHU Corporation | Pre Organic Cotton (POC) Program
Hear more from Nobuyasu in our Insider Series interview.
Back to Contents • 13Spotlight on pricing
Price differentials explained
There is no universally accepted definition The price differential should cover:
or formalized mechanism for arriving at
a price for organic seed cotton or fiber. • production cost (including yield loss).
The rule-of-thumb is to take a reference • certification and inspections.
price (usually the conventional cotton • training and extension services.
price quoted in the country of origin or
on the international commodity market) • investment in farming operations.
and add a percentage increase to cover • research, development, and
the organic value addition, and possible investment in seed and farm
compensation for a loss in yield. innovations.
Organic price differentials A percentage may also go towards the
collective needs of the community such
This differential is often called a “price as schooling, health care, and housing,
premium,” though at Textile Exchange, particularly in programs that are also
we refer to it as a “price differential.” fairtrade certified.
It is agreed between buyer and seller, Organic seed cotton pricing
yet heavily influenced by conventional
commodity market prices. Differentials The seed cotton price is the amount paid
can range depending on factors such as: for the harvested cotton bolls (with seed Costs during manufacturing, such as the product that feeds spinning mills, sold
still attached). It is the seed cotton price factory certification, bookkeeping, chain to spinners by either farmers, ginners, or
• market conditions, price elasticity, and that is most important to farmers who are of custody, product segregation, possibly traders.
market variances. trading at the farm gate, often receiving machine cleaning and running smaller
• quality and staple length. their annual income in one lump sum. volumes, need to be part of the final Read more on pricing models in A World
Farmers sell to aggregators, ginners, costing, but it is the value-addition at the Beyond Certification: A best practices
• country of origin.
mills, occasionally to brands, and also to growing stage where the majority of the guide for organic cotton trading models.
• amount of trash or contamination. traders in the open market. organic benefits are made. COVID-19 impact on pricing
• trade agreements between producers
and buyers. If farmers are vertically integrated into the Organic cotton lint pricing The impact of COVID on cotton prices is
mills, or they have agreed to trade and
• organic, fairtrade and other The organic lint price is the market price of yet to be fully realized, but early signs show
price arrangements with a buyer, partner
certifications. post-ginned cotton fiber. The seeds have that it could be substantial as a result of
company, or organization, the price
been removed (for seed selection breeding reduced demand. In India, for example,
The average price differential is can be decoupled from the commodity
or for processing by the organic food or cotton prices have already fallen by around
somewhere between five and 20 percent, market, or at least a minimum price is
feedstock sector). The fiber is compressed 18-25 percent compared to last year.
but can be as little as one percent or as agreed to upfront, alongside other terms
large as 100 percent. and conditions of trade. and baled for the textile industry. This is
Back to Contents Photo (top right): © Joerg Boethling for bioRe Foundation • 14Spotlight on pricing
0.0
0.2
0.4
0.6
0.8
1.0
1.2
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1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
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3.6
3.8
4.0
2018/19 organic seed cotton and organic lint prices1
Argentina M
Please note that these charts provide ranged from 1.61- 2.19 (average of 1.85)
Benin M
estimated figures only, based on over the same time period. Please refer
conversations with local experts. In to the text on the previous page that Brazil M L
2018/19, according to our information, explains the range of factors affecting
Burkina Faso M L
organic cotton fiber prices ranged from cotton prices and organic differentials.
US$/kg 1.6-3.43 (average of 2.19) Where there are gaps in the charts, this is China M L
compared to the Cotlook Index that due to no reliable data being available.
Egypt M L EL
Organic Seed Cotton Organic Cotton Lint Ethiopia L
Common Price Avg. Price Range Price Avg. Price Range
Country India S M L EL
fiber types US$/kg US$/kg US$/kg US$/kg
Argentina M 0.6 Kyrgyzstan M
Benin M 0.54 Mali M
Brazil M-L 0.63 3.311
Greece M
Burkina Faso M 0.56
China M-L 1.44 1.17 - 1.70 2.27 1.98 - 2.55 Pakistan M
Egypt M-ELS 1.00 0.98-1.2
Peru L EL
Ethiopia L 0.58 1.6
India S-ELS 0.82 0.57-1.07 2.1 1.48-2.71 Senegal M
Kyrgyzstan M 0.65 0.62-0.67 1.88 1.85-1.90 Tajikistan M
Mali M 0.57 2.14
Tanzania M
Greece M 0.6
Pakistan M 0.7 Thailand S
Peru L-ELS 1.2 1.02-1.38
Turkey M L
Senegal M 0.56
Uganda M
Tajikistan M 0.59 1.98
Tanzania M 0.54 0.52-0.58 USA S M L EL
Thailand S 1.00 0.97-1.02
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
Turkey M-L 0.84 0.76-0.91 2.09 1.89-2.28
US$ per kg
Uganda M 0.34
USA S-ELS 2.205 1.87-2.54 Organic Seed Cotton Price (2018/19): Range (Max/Min) Average Price
Organic Lint Cotton Price (2018/19): Range (Max/Min) Average Price
1
Please note that this is the average price for white organic cotton in Brazil; a small quantity of colored organic cotton is also grown and fetches
a higher price (US$/kg 3.55 average). Please also note that the comparatively high price paid for organic cotton in Brazil is due to (1) the country’s Fiber Length: S Short M Medium L Long EL Extra Long
volatile exchange rate and (2) the price paid to farmers includes the costs of ginning and (PGS) certification.
Back to Contents • 15Spotlight on pricing
Program insights
At OCA, we support farm-level interventions because we believe Fairtrade and organic are two different but complementary approaches.
farmers are the catalysts for the powerful and positive impact organic Fairtrade Standards cover many environmental aspects, but our primary
cotton can have on people, planet, and prosperity. Support the farmer, focus is on better terms of trade for farmers and workers. Fairtrade’s
you strengthen the sector, and you safeguard the earth. That’s why unique benefits, such as stable prices and funds for development, bring
OCA’s primary program—the Farmer Engagement and Development the stability and investment that is often needed to convert to organic.
(FED) Programme—focuses on creating a secure market for farmers, Fairtrade promotes organic agriculture and supports producers to convert
advocating for better prices for organic cotton, and creating visibility all to organic, for example, through their Fairtrade Development Plan, or
the way down to the farmer. Last year our FED Programme mushroomed by investing the Fairtrade Premium in converting to organic farming
six-fold to 12,000 farmers in India and this year, we anticipate even as turning to organic takes time and money. Fairtrade also sets higher
more growth to a total of 23,000 farmers in our FED Programme. These minimum prices for organic produce.
farmers saw a real and compelling business case for using organic
practices. They received a premium payment and committed offtake
Subindu Garkhel
from OCA brands and retailers, resulting in, on average, four percent
Senior Cotton and Textiles Lead
higher net income from their cotton than conventional farmers in the
Fairtrade
same region. The recent disruptions in global textile supply chains due
to the COVID-19 pandemic have, more than ever, impressed on us the Hear more from Subindu in our Insider Series interview.
importance of brands and retailers carrying through their commitments to
the organic farming communities through OCA’s FED Programme. This
program provides a secure offtake of organic cotton as a vital cash crop.
For farmers to stay in cotton, they need more stable rates. This stability
Now, more than ever, solidarity in supply chains is needed to protect
can be achieved by managing premiums, but it all starts with long term
farmers; it is not the time for us to lose momentum or resolve. At OCA,
contracts with brands, which allows us to keep prices steady. We always
we fully intend to remain committed to this vital work along with our
have fields in transition for around 20-30 percent of our area. These areas
partners.
are used to offset any reduction coming from events like COVID, plus
natural migration to other more profitable crops.
Bart Vollaard
Executive Director
Orlando Rivera
Organic Cotton Accelerator
General Manager
Hear more from Bart in our Insider Series interview. Bergman Rivera
Hear more from Orlando in our Insider Series interview.
Back to Contents • 16Market signals
Brand commitments to organic cotton
While organic cotton was once seen as Committed to use more sustainable Other CFMB examples
Examples of Textile Exchange
“niche,” today, brands of all sizes are cotton, including organic:
members' progress towards organic • Burton Snowboards: 100 percent
making it a major component of their fiber
and material portfolios. More and more • Bestseller: 100 percent cotton to be cotton to be organic by design year
Already at 100 percent organic cotton:
brands and retailers are setting targets from more sustainable sources by 2020 / product season winter 2022.
and making commitments to increase • Boll & Branch 2025; 30 percent of which is to be • Decathlon: 100 percent cotton to be
their use of organic cotton, encouraged organic. organic, recycled or Better Cotton by
• Coyuchi
by growing evidence of the sustainability • C&A: 100 percent cotton to be from 2020.
• Indigenous Designs
benefits of the fiber, and by the millennial more sustainable sources by 2020.
generation bringing its buying power to • KALANI
• H&M: 100 percent cotton to be Industry commitments
the market. • Norrøna* organic, recycled or Better Cotton by
2020. • 2025 Sustainable Cotton
It is interesting to see that Textile • Nudie Jeans
Challenge: as part of this challenge,
Exchange’s 2019 Corporate Fiber & • Wear Pact, LLC • Levi Strauss & Co.: 100 percent 72 brands and retailers (including
Materials Benchmark (CFMB) program cotton to be organic, recycled or subsidiaries) have now pledged for
• Patagonia
had: Better Cotton by 2020. 100 percent of their cotton to come
• prAna
• Lindex: all cotton is already either from more sustainable sources,
• Stanley and Stella organic cotton or Better Cotton. including organic, by 2025. See the
116 Participants
• Veja* • Puma: 90 percent cotton to be 2025 Sustainable Cotton Challenge
of which...
organic and/or Better Cotton by Second Annual Report 2020 for more
*Also use some recycled cotton.
2020. detail.
89 use organic cotton
Committed to 100 percent organic: • The German Partnership for
• Target: 100 percent cotton to be
of which... Sustainable Textiles: members
• ARMEDANGELS: Committed to 100 organic or Better Cotton by 2022 for
own brand and exclusive national have jointly agreed to use at least 35
14 committed to sourcing percent organic cotton. Some of the
100% organic cotton brand products. percent sustainable cotton by 2020,
cotton use is also Fairtrade certified.
with 10 percent of the total volume
of which... • EILEEN FISHER: 100 percent cotton • Timberland: 100 percent cotton to being organic. The aim is to increase
10 have already reached to be organic by 2020. be organic, Better Cotton, or of US- this to 70 percent sustainable cotton
this target origin by 2020. by 2025, with 20 percent being
• Kering: 100 percent cotton to be
organic by 2025. organic. There are currently around
120 members of the Partnership.
• Outerknown: 100 percent cotton to
be organic by 2020.
Back to Contents • 17Organic Cotton Round Table
The 2019 Organic Cotton Round Table to a fully online, virtual experience. We
(OCRT) took place in Vancouver on believe this is the safest approach for
Friday, October 18, 2019, just after the well-being of our global audience,
Textile Exchange’s annual conference. and we are excited that a virtual event
The cross-cutting theme of the day was makes it possible to broaden the learning
Greater Together | SDG 17: Partnership opportunities and engagement with the
for the Goals, with some of the greatest industry at this time.
partnerships in the world of organic cotton
being celebrated alongside the progress Details of the 2020 virtual OCRT Summit
being made in production, seed, and will be announced in due course. If you
integrity. would like to register your interest in section for details) but the others - due to and 2017, with funding from ICCO and
attending this event, please email be held in Brazil, Turkey and China - have SECO. The new OCRT Hub Community
Going virtual for 2020 OCRT@TextileExchange.org. unfortunately had to be postponed as a will take a similar approach to engaging the
result of COVID-19. We instead plan to organic cotton community through virtual
This year’s Global OCRT will look Regional OCRT Summits
hold several regional sessions virtually later dialogues, and will provide a place for us
a little different. In light of on-going
A total of four in-person Regional OCRT in the year, and hope to hold the in-person to keep the community up to date with the
developments with COVID-19, Textile
Summits had been planned for 2020. events in 2021 instead. latest developments from our Global and
Exchange has decided to move its 2020
One of these went ahead in Burkina Faso, Regional Organic Cotton Round Tables and
Textile Sustainability Conference and Join our online Hub Community
West Africa, in January (see West Africa Working Groups.
accompanying Round Table summits
An online community for the OCRT in New In-Conversion Working Group
Textile Exchange’s member Portal, the Hub,
has been in the pipeline for some time, but Under the umbrella of the Organic Cotton
the COVID-19 pandemic makes it an even Round Table, we have a number of
greater priority. Due to launch in Summer working groups that are action oriented
2020, the OCRT's new virtual home will and work on specific tasks throughout the
allow our global audience to continue year, between our Round Table summits.
engaging and driving change despite The most recent addition is a working
ongoing travel restrictions. group focused on in-conversion cotton.
If you are interested in learning more
Many readers will remember the “Global about this group, please email OCRT@
Organic Cotton Community Platform” - a TextileExchange.org.
Community of Practice hosted by Textile
Exchange and Helvetas between 2009
Photos (left and right): Textile Exchange’s 2019 Global
Back to Contents Organic Cotton Round Table Summit, Vancouver • 18Organic Cotton Producer Directory
New tool will connect industry with organic cotton producers
Textile Exchange will soon be launching How to be featured
a new online tool to help the industry
connect directly with producers of organic If you represent an organic cotton
cotton all over the world. producer/producer group and would like
your contact information to be featured in
The Organic Cotton Producer Directory will this public directory, please complete the
be a public tool that allows users to search consent form, available in a number of
for organic cotton producers (individuals languages: EN; FR; ES; PT; ZH.
and groups/cooperatives) based on
specific criteria, currently including region, If you have any questions, please contact
country, annual fiber production, and fiber Materials@TextileExchange.org.
length. Contact information will be provided Additional database for India
for each producer to allow users to contact
them directly for more detail such as Complementing Textile Exchange's
current availability and prices. Organic Cotton Producer Directory,
Textile Exchange and the Organic Cotton
The directory is a voluntary listing, and Accelerator (OCA) are also collaborating to
the information featured is self-submitted. create a deep-dive database specifically
Hence, it will not be an exhaustive list of all for producers in India, which will support
organic cotton producers, as only those the work of OCA's Farmer Engagement
who submit information will be included. and Development (FED) Program. Find out
The tool will help to provide visibility to more in the India section of this report.
organic cotton farmers, their products, and
their stories.
While the online tool is in development, you
can access preliminary information from the
database in pdf format.
Concept design for the Organic Cotton Producer Directory
Back to Contents • 19Insider Series
Hear the latest from our industry insiders Subindu Garkhel
Senior Cotton and Textiles
Hendrik Buermann
Senior Project Manager,
Lead, GIZ
During the preparation of this report, projects, challenges, successes, goals, Fairtrade
Link to interview
alongside the collection of data, we visions for the organic cotton sector, and
Link to interview
interviewed over twenty stakeholders active much more. Snapshots of their responses
in different parts of the organic cotton are shared throughout this report, but
supply network and from different corners check out our revamped Insider Series and
Nobuyasu Nakamura Juni van Kleef
of the globe. We asked about their current Member Spotlight to read the full interviews.
Sales Specialist, Merchandiser,
ITOCHU Corporation Naturetex
Link to interview Link to interview
Ashis Mondal Boaz Ogola
Director, General Manager,
Action for Social Alliance Ginneries Ltd.
Advancement (ASA) Bart Vollaard
Link to interview Fabienne Krebs Executive Director,
Link to interview Project Support , Organic Cotton
ecos/CCBE Accelerator
Link to interview Link to interview
Orlando Rivera Sherzod
General Manager, Abdurakhmanov
Bergman Rivera Advisor,
Bio-Kishovarz Veronica Yow Sarah Compson
Link to interview Senior Manager, International
Link to interview Rare Development Manager,
Soil Association
Link to interview
Link to interview
Christa Suter Roland Stelzer
CEO, Managing Director ,
bioRe® Foundation Cotonea/Gebr. Elmer & Ishwar Ilanchezian Mahesh Ramakrishnan
Zweifel GmbH & Co. KG Director – Textile Division, Senior Vice President -
Link to interview
Suminter India Organics Sustainable Cotton,
Link to interview
Pvt. Ltd Welspun Group
Link to interview Link to interview
Ravindra Marci Zaroff
Narayanaswamy Founder/CEO,
Senior Director - Farm ECOfashion Corp/ Hafiz Muhammad Bakhsh
Operations, MetaWear Manager Organic Cotton
CottonConnect Project,
Link to interview
WWF Pakistan
Link to interview
Link to interview
Back to Contents • 20You can also read
