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2018 Organic Cotton Market Report PDF
2018 Organic Cotton Market Report PDF
BSD Consulting performed an independent review of Accountability Principles and considered that the After careful revision of the OCMR 2018 and its underlying
the data collection process used by Textile Exchange report has satisfied the Inclusivity and Responsiveness data collection process, we can affirm that Textile Exchange
in compiling data for the annual Organic Cotton Market principles in full. A total of eight local ambassadors was able to improve the accuracy and completeness of the
Report (OCMR). The objective of the critical review have been involved in this year´s data collection presented data and deliver a reliable picture of the current
is to provide Textile Exchange’s stakeholders with an process. With the help of this support staff and partner state of organic cotton production. Using data triangulation
independent opinion about the quality of the reported organizations, Textile Exchange was able to establish and investigation, the team put a considerable effort in
data and the adherence to the principles of international a strong network of partners allowing it to approach compiling the global data.
benchmarks such as the AA1000APS (2018) and the the data collection from different perspectives. During
GRI Standards. The full statement is available here. the production year, many producer groups have been To further benefit from this effort, we recommend that Textile
visited in loco, which allowed first-hand confirmation Exchange expand the report in future cycles with impact
BSD Consulting considers the total of 117,525 MT of numbers. Furthermore, Textile Exchange has made data that can distinguish the importance of organic certified
of organic cotton for the production year 2016/17 updates in the data collection methodology applied in production in an environment of increasing sustainability
reported in the OCMR 2018 to be an accurate and the prior report and presented a revised version in order claims of market partners and related certification schemes
reliable estimation. Textile Exchange has made a major to conduct the data collection of this report during our with less rigid benchmarks for production.
effort in obtaining more data from Certification Bodies review process.
(CBs) and, at the same time, improved the quality of
producer data, by establishing direct relations with With reference to the Impact principle, the OCMR 2018
the groups through visits or using data from existing is providing case studies to document the evolution and Beat Grüninger
partner programs to confirm the data sets derived from development of organic cotton in all covered regions Director, Group Partner, BSD
producer sources. The data collection process also and also predicts a significant increase of converted Consulting
satisfied the completeness principle to a great extent areas in the coming years. So far, anecdotal references
as it covered 32 out of 64 cotton producing countries, on how organic cotton will contribute to the Sustainable
representing nearly 95 percent (21,936,000 MT) of Development Goals suggest that cotton will have a
the total production registered by the International strong positive impact on society and environment.
Cotton Advisory Committee (ICAC). The data has
been compiled using three different sources: Data For the next reports, we recommend that Textile
delivered directly by producer groups, data from official Exchange gather objective data from impact studies
governmental agencies registering certified production that can corroborate this impact. Given the fact that
and data provided by certification bodies. consumers often do not make a clear distinction
between organic and less rigid sustainability
BSD has verified a sample of templates used by the certifications, such impact data can prove that organic
ambassadors for data collection and confirmed that has stronger positive footprint and is key to further
triangulation and quality checks have been used increasing organic certified cotton production.
to guarantee accuracy of the data to the extent it
was technically possible for Textile Exchange. BSD
Consulting evaluated the application of the four
What’s inside
Fiber classification 19
Standards & Certification 73
Stakeholder directory 29
Methodology & Disclaimer 77
Stakeholder directory 37
© | Page 4
Welcome to the 2018
Organic Cotton Market Report
“
We are happy to note that this year’s
Welcome back to Textile Exchange’s 13th Organic be found in India, Tanzania, and Pakistan, with China, OCMR and the processes leading up to
Cotton Market Report (OCMR). Turkey and Kyrgystan also reporting substantial areas. putting this report together have been
GRI compliant. This improvement fills a
Our 2018 report is packed with even more data and Our mantra: Growth must come with Integrity.
critical data gap in the sector and C&A
analytics, alongside the ever-popular country round-
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.
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
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.
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
Uganda Australia US
835,000 27.1m ha $44.4b US
1. FiBL & IFOAM - Organics International, 2018, The World of Organic Agriculture: Statistics & Emerging Trends 2018
BACK TO CONTENTS
2016/17 organic cotton production
A global snapshot
220,478 472,999 117,525
2016/17 was an exciting year for the Data Revisions Organic Farmers Organic Certified Land (ha) Organic Cotton Fiber (MT)
organic cotton community. As well as
seeing promising developments from Textile Exchange relies on its data
organic cotton initiatives across the providers for data comprehensiveness,
globe, we also saw a ten percent growth accuracy and integrity. Whilst we carry
in global fiber production, which reached out a systematic completeness check
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 <1-67%)
from the organic dairy industry and the our data sources each year, previously
domestic textile sector. Other countries reported data is corrected and revised
97%
that contributed significantly to the global to accurately reflect historical trends and 18 Countries Global Production Comes From Just
growth include Tanzania, Uganda, Benin, growth rates. The following revisions are
Producing Organic Cotton
Turkey, and the USA. made this year: 7 Countries*
Another noteworthy trend this year is the • 366mt fiber reported for Pakistan in
substantial area of cotton-growing land 2015/16 was transferred into Year 3 INDIA CHINA KYRGYZSTAN TURKEY
in transition to organic, which totalled in-conversion.
30,000,000 300,000
2004-05
25,000,000 250,000
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
2012-13 100,000
Africa
90,000
2013-14 80,000 China
70,000
50,000
100,000
150,000
200,000
250,000
300,000
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
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
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
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.
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.
Pesticide Action
Network UK
Non-profit
GERMANY
GIZ
Soil Association Non-profit
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
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.]
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
16
16
17
‘17
17
17
7
t ‘1
r ‘1
r ‘1
l ‘1
g‘
p‘
v‘
c‘
n‘
y‘
n‘
Ju
Oc
Ma
Ap
No
Ma
De
Ja
Ju
Au
Se
Fe
3. Kering and Textile Exchange, 2017. Organic Cotton - A fiber classification guide.
Africa
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
12+88+S
BENIN
3,500 Benin
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
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
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).
“
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
“
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.
The Royal Botanic Gardens at Kew in current use of pesticide plant species. It On February 15th, 2018, the ground- Growers Of Burkina) to resolve
the UK is carrying out a Pesticide Plants will not only identify those pesticide plant breaking ceremony took place for the bottlenecks related to delayed ginning
Project for the production of organic species and their active compounds, first organic cotton gin in West Africa, of organic cotton. This, in turn, will
cotton in Mali, funded by the Darwin but help cultivate them, optimize located in Koudougou. The gin is a encourage growth in organic cotton
Initiative and TRAID. The project is their use and promote awareness of collaboration between the USDA-funded production and international trade.
working with local farmers and national biodiversity and pesticide plants among RECOLTE project, CRS, UNPCB, and Currently, organic cotton is ginned six
institutions in-country to understand the policy makers and local people. SOFITEX. It is hoped that the gin will be months later than conventional cotton,
up and running by early 2019. which delays the entire production
chain and payment to producers and, in
The installation of the plant will enable turn, discourages timely organic cotton
UNPCB (National Union Of Cotton production and participation.
Photos: Top & bottom left - Textile Exchange, Burkina Faso; Right - RECOLTE Project/ Catholic Relief Services, Burkina Faso
ETHIOPIA
Cotton House Africa
MALI (CHA)
Pesticide Action
Network Non-profit
FENABE - National
Federation of Organic Non-profit
and Fairtrade
Producers (previously Pesticide Action
MoBioM) Network UK
Producer Organization Non-profit
OBEPAB
BURKINA FASO Non-profit
SODEFITEX
UNPCB Elmertex
Service Company
Producer Organization Service Company BioSustain
Service Company
C&A Foundation
Partnerships
91+9+S 9+91+S
XINJIANG
25,000
0+100+S
SHANXI
20,000
Seed
2+98+S
HUBEI
Fiber Production (MT)
15,000
Pilot
China
10,000 1 MT
5,000
0
2012-13 2013-14 2014-15 2015-16 2016-17
China
There are three main provinces In China, to sell a product as organic,
producing organic cotton in China - brands and retailers need to be certified 824
Xinjiang, Gansu and Hubei - though the to China-NOP (GOTS and OCS Organic Farmers
majority of production takes place in cannot be labeled). As a result, local
Xinjiang. There was a significant increase brands, particularly SMEs, have also
of 52 percent in the country’s production begun to adopt the China-NOP for 11,846
Organic Certified
of organic cotton in 2016/17, particularly the domestic market. The China NOP Land (ha)
of cotton certified to China’s National standard is much more strict in terms of
Organic Program (NOP). This took requirements, for instance allowing only
China’s total production to 22,521 MT, natural dyes and requiring the cotton 22,521
Organic Cotton
19 percent of the global total. used in the product to be 100 percent Fiber (MT)
organic.
This increase in production is, for the
most part, fueled not by the textile In terms of organic cotton pricing, the 5,108
industry but by demand from the organic gap between China and India seems to Organic In-Conversion
Land (ha)
dairy industry, which uses organic cotton have narrowed compared to last year,
seed as feed for dairy cattle, particularly though is still significant. A number of
in the Xinjiang region. farms are focusing on growing ELS 52%
organic cotton as a way to combat the Fiber Year-On-Year
China has a significant area of land in price differential between China and
conversion to organic, totaling 5,108 ha India.
in 2016/17, which will reach certification 19%
over the next couple of years, indicating Suppliers in China have noted that Share of Global Organic
that the current growth trend in China’s brands are beginning to ask more Cotton Production
organic cotton production looks set to frequently about sourcing organic
continue. cotton from within China, but quantity 0.5%
remains an issue. Demand aggregation
Organic Share of National
and clustering is something that Textile Cotton Production
Exchange’s China Working Group will be
looking at as a potential solution.
Veronica Yow
is based on production. Models like
carbon insetting helps companies to
Q What iInspires and excites
you to keep going?
invest in practices that reduce carbon
Manager, Sustainable Markets & Seeing the difference in the soil when
emissions within their supply chain while
Finance, Rare compost is applied vs. commercial
supporting farmers to adopt carbon
organic fertilizer vs. chemical. The color,
farming practices. This helps companies
the texture, the moisture in the soil and
to meet both sustainable sourcing and
when you smell the soil, you smell life.
Q What was great about and promoting organic and climate- climate goals.
And especially when farmers see and
2017? smart practices that improve the soil
understand this.
such as compost and improved residue
Meeting Qi Suqin for the first time management.
during the brands site visit that we
organized. Ms. Qi is a farmer and also We also begun a new and exciting
the Campaign Manager for Rare’s “Let’s partnership with Shokay, which
Farm Organic” project which is funded specializes in yak wool to develop a
by C&A Foundation. She helps to Yak Cotton blend from in transition
promote organic practices among her cotton from our partner farms to offer
peers at our partner farm. I’ve known of more varieties of organic/in transition
Ms.Qi for a couple of months then but products, especially for smaller brands
have not met her yet. When I saw her, which normally only source fabric. More
she immediately embraced me like an information is available here.
old friend even though we’ve never met.
Through that site visit, we secured a What was the most
3-year purchase agreement from a local
Chinese brand for that farm. Although Q important lesson you’ve
learnt since starting your
the quantity isn’t big, it’s a good work in organic cotton?
beginning to get more brands to support
Feed the soil and let the soil feed the
organic/in transition particularly in China.
plants. Organic certification serves a
Q What are you working on certain function but is not a true proxy
right now? for environmental outcomes. We need to
align intention and incentives to actively
We are supporting farmers to transition support farmers adopt practices that Photos: Rare, China
Extra Long Staple cotton towards will restore soil health and there needs
organic cultivation in Xinjiang, China to be a financial mechanism that meets Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases
an eclectic mix of industry leaders speaking from “inside” their organizations.
C&A Foundation supports organic cultivation yielding 4 MT lint certified CottonConnect works closely with introduced them to new technologies,
cotton cultivation in China in and 186 MT lint in conversion. The brands on interventions aimed at microfinance and credit options. It is a
collaboration with two key partners – foundation’s efforts have motivated the improving productivity and reducing first step towards long term resilience
CottonConnect and Rare. Currently C&A commitment of supply chain actors, with environmental impacts in cotton for communities, providing a platform
Foundation’s partners support farmers additional investment support coming production in China, through REEL for access to finance and community
with organic cotton cultivation in three in from Huiton – a spinning mill based Cotton, BCI and organic programs. organization. The Rights and Life Skills
provinces – Hubei, Shandong and in Shandong, and Organic Cotton CottonConnect implements projects training Women in Cotton communities
Xinjiang. Across these three regions 347 Awareness – a local Chinese brand to in the Xinjiang, Hebei and Shandong are trained and empowered with the
Hectare area is under organic cotton the farmers in these programs. regions. skills to take action in their lives, and are
respected.
Women account for 45 percent of the
total employed population in China. Together with C&A Foundation,
Fewer female farmers than male farmers CottonConnect provides technical and
attend CottonConnect technical training, financial support to farmers in China,
though they are major workforce in enabling them to convert to organic and
cotton farms. CottonConnect therefore become certified.
introduced the Women in Cotton
program into China, consisting of To find out more about CottonConnect’s
Farmer Business School and Rights and activities in China and other cotton
Life Skills. Farmers Business School growing regions visit their website:
encourages farmers to see their farm cottonconnect.org
as a business and CottonConnect has
CHINA
Textile Exchange
Non-profit
C&A Foundation
Non-profit
Rare
Non-profit
CottonConnect
Social Enterprise
9,000
7+93+S 23+77+S
8,000 EGYPT TAJIKISTAN
Egypt
7,000
Greece
Fiber Production (MT)
6,000
5,000 Israel 1,742 MT 6,405 MT
4,000 Kyrgyzstan
3,000
Tajikistan
2,000
Turkey
1,000 Please note that, since publication of the 2017 OCMR, it has come to our attention that the data
reported for Turkey, Kyrgyzstan, and Tajikistan’s 2015/16 production was incorrect. Additionally, it has
0 since been discovered that Greece also produces some organic certified seed cotton, though it is
2012-13 2013-14 2014-15 2015-16 2016-17 not separated at the gin and is therefore not currently sold as organic cotton fiber on the market.
Tajikistan
Greece
Turkey
Egypt
Overall, this region experienced a seven fiber on the market. For manufacturing
percent rise in organic cotton production organic cotton yarn, Greece currently 360 no data 1,009 1,049 196
in 2016/17. Though Central Asia (in imports organic fiber from Turkey. Organic Farmers
this case Kyrgyzstan and Tajikistan)
experienced a marginal decline in According to the Greek Ministry of
production following the considerable Rural Development and Food, there 542 1,153 6,929 4,920 3,863
were 1,153 ha of land growing organic Organic Certified
spikes seen over the previous two years, Land (ha)
Egypt and Turkey both saw increases. cotton in 2016/17. Total production is
Additionally, it came to our attention that estimated at 2,500 MT seed cotton,
Greece is also producing organic cotton which would be equivalent to around 1,742 850 8,019 6,405 7,741
850 MT fiber. Organic Cotton
(read more opposite), which further Fiber (MT)
bumped up volumes. Greece’s most important area for cotton
production, and where the organic
EGYPT no data no data 991 175 2,721
cotton is also grown, is Larissa and Organic In-Conversion
In Egypt, there is exciting news from Karditsa in the center of the country. Land (ha)
Aydin Unsal
Owner and President of the Board,
Egedeniz Textile
Through the national project, UNIDO and Cottonforlife currently cultivates organic
FILMAR are working in coordination with cotton on around 120 ha in Damietta,
institutional counterparts such as Egypt’s northeastern Egypt, in partnership
Ministry of Trade & Industry and Ministry with Sekem. The new partnership with
of Agriculture and Land Reclamation, UNIDO will allow these demo plots to be
as well as other national stakeholders, rolled out more widely, and the potential
to improve transparency, traceability to benchmark practices to international
and sustainability in Egyptian cotton standards is also being explored.
production and industrial processing.
The aim is to promote organic and
non-contaminated long and extra-long
HELVETAS Swiss
Intercoorporation
Non-profit
TURKEY
IZFAS
Partnerships
TAJIKISTAN
GIZ
EGYPT Non-profit
SEKEM
Service Company HELVETAS Swiss
Intercoorporation
Non-profit
Cotton for Life
Partnerships
Bio-Kishovarz
cooperative
Producer Organization
100+0+S
HAITI REGIONAL PRODUCTION
Pilot
Project
11+89+S
BRAZIL
474 1,226 16%
Organic Farmers Organic Certified Fiber (MT) Year-On-
Land (ha) Year Growth 43 MT
89+11+S
PERU
6,000
1+99+S
Argentina ARGENTINA
5,000 Brazil
Fiber Production (MT)
4,000 Peru
0.4 MT
3,000 Paraguay
2,000 Nicaragua
1,000 Colombia
0
2012-13 2013-14 2014-15 2015-16 2016-17
Brazil
Peru
Organic cotton production in Latin last year didn’t help the situation. The
America is characterized by smallholder lack of effective governmental programs 5 308 161
family farms organized in groups, usually or investments from the textile industry in Organic Farmers
supported by NGOs or traders. The the organic sector was again sorely felt.
production is rainfed and therefore very
In spite of this, the region still 100 496 630
dependent on the climate situation.
experienced a 16 percent growth in Organic Certified
Since 2013, the region has been Land (ha)
production of organic cotton overall, with
affected by the natural phenomenon
production taking place predominantly in
“el Niño,” which resulted in several
Perú and Brazil, and a small amount also 0.4 43 338
years of severe drought in producing
in Argentina. Momentum in the region Organic Cotton
regions. Peaking in 2016, the drought Fiber (MT)
is building, with a growing number
significantly affected production of
of strategic events and movements
organic cotton.
underway related to organic and more no data 155 305
2017 saw the beginning of a transition sustainable cotton, and a number of Organic In-Conversion
back to a more typical climate, but institutes associated to big retailers Land (ha)
farmers were still very affected by losses already having expressed agendas to
from previous years. Lack of investment, develop more sustainable supply chains. no data 155% 21%
a shortage in supply of good quality The potential for organic cotton in this
Fiber Year-On-Year
seed, and a great deal of uncertainty region is certainly looking bright.
meant that the strong growth anticipated
for this region has not yet been realized. <0.01% 0.04% 0.3%
Economic instability in countries such as Share of Global Organic
Argentina, Colombia, and Brazil over the Cotton Production
Orlando Rivera
Managing Director,
Bergman Rivera
C&A Foundation has been working Ceará province. Starting in 2018, the Another promising initiative is launching In 2017, the project ran a field-study to
with ESPLAR and EMBRAPA Cotton foundation will also support DIACONIA in Haiti, where the Smallholder Farmers test the adaptation of different cotton
to expand production of Mocó organic in engaging 750 smallholder farmers Alliance, in partnership with Timberland, varieties, including some organic
cotton supply (multi-annual cotton on organic cotton cultivation across is re-introducing cotton production to cottonseed from Brazil and also varieties
variety, with long fiber that is more the states of Alagoas, Ceará, Paraíba, the country after 30 years. The goal is to from India and the USA. The study’s
resistant to drought). This initiative Pernambuco, Piauí, Rio Grande do chart new territory for sustainable cotton findings will inform the first commercial
currently engages 300 farmers in Norte and Sergipe. production by creating a business model planting by up to 500 farmers in 2018.
that also integrates organic cotton with
combating climate change, improving The project is also exploring the use of
food security and empowering women. blockchain technology to integrate data,
traceability, transparency and efficiency
into a smallholder supply chain in Haiti.
Photos: Left - ESPLAR/ C&A Foundation, Brazil; Right - Tatiana Cardeal for C&A Foundation, Brazil
Photo: ESPLAR/ C&A Foundation, Brazil Photo: Tatiana Cardeal for C&A Foundation, Brazil
Smallholder Farmers
This map highlights some of the key organizations working to Alliance
support organic cotton in this region. Social Enterprise
BRAZIL
COLOMBIA
Textile Exchange ESPLAR
SOCiLA Non-profit Non-profit
Non-profit
Sustainable Fashion
Lab
Partnerships
ARGENTINA
Stay True
Social Enterprise
0+100+S 100+0+S
PAKISTAN MYANMAR
In Pilot
Conversion Project
192,128 387,596 1.8%
Organic Farmers Organic Certified Fiber (MT) Growth
Land (ha) over 2015/16
100,000
99+1+S
INDIA
80,000
Fiber Production (MT)
59,470 MT
1+99+S
60,000 THAILAND
India
Thailand
40,000
4 MT
20,000
0
2012-13 2013-14 2014-15 2015-16 2016-17
Pakistan
Thailand
India
MADHYA 192,060 2 66
1+99+S 47+53+S
RAJASTHAN PRADESH Organic Farmers
14+86+S
GUJARAT 59,470 0 4
Organic Cotton
Fiber (MT)
8,551 MT
172,180 12,283 no data
Organic In-Conversion
Land (ha)
11+89+S 26+74+S
MAHARASHTRA ODISHA
1% n/a 50%
Fiber Year-On-Year
6,735 MT 15,186 MT
51% 0% 0.004%
Share of Global Organic
Cotton Production
1+99+S 1+99+S
KARNATAKA TELANGANA
1.0% 0% 0.4%
Organic Share of National
396 MT 173 MT Cotton Production
“
There was no certified production of is also a project by Pakistan’s Rural Climate change is a harsh reality now in India as elsewhere. While
organic cotton in Pakistan in 2016/17. Business Development Center (RBDC) everyone is impacted, farmers suffer the most especially in rainfed
However, there are over 12,283 ha and Lok Sanjh Foundation that is agricultural scenarios. If we want cotton in the future to be available
growing cotton in conversion to organic initiating the organic certification process to the industry and not transform into a luxury, we will need assured
as part of the C&A Foundation/ WWF for its cotton production this year. Read
supply chains that are nurtured, with farmers being taught the skills to
project that is due to reach certification more about these initiatives on page 63.
adapt. Needless to say concerted efforts to improve seed R&D and
in the 2019/20 harvest year. There
seed availability, especially for the organic sector, are key. The industry
needs to recognize and act upon this gap in a collaborative manner,
THAILAND as it has significant implications for the future.
Prabha Nagarajan
The Green Net Cooperative, first river to grown organic cotton. Thanks Organic Cotton Expert, India
introduced in last year’s report and to the organic and fair trade scheme
Thailand’s only known organic cotton implemented by Green Net, farmers CottonConnect’s activities in India
producer, is part of the Rim Khong receive a good price for their cotton.
Organic Agriculture Project. The Green Net recently supported the Together with C&A Foundation, supply chain partners are collaborating
Cooperative had a successful year in transition from a third-party certification CottonConnect is promoting to create a robust supply network, in an
2016/17, with record-high yields as a system to a local Participatory Guarantee organic cotton production, training effort to secure a traceable and reliable
result of cool weather and plentiful water System (PGS), which works well for cotton farmers in Gujarat, Madhya organic cotton supply for its brands.
during the growing season. This led to a these farmers. Existing customers Pradesh, Rajasthan and Maharashtra. A case study exploring the learnings
growth in production from 2.8 to 4.2 MT having trust in Green Net’s PGS and CottonConnect also runs sustainable from this pilot will be released soon,
organic cotton fiber, which was grown therefore have continued to purchase organic projects in Madhya Pradesh, and is intended to be a useful resource
on 76 ha. the cotton, and new customers are also enabling cotton farmers to connect for companies seeking to bring supply
showing interest, drawn in by the fact with global supply chains and providing chain partners together and build
Though a small-scale project, 66 that the supply chain is very localized. gender training to women.Transparency connected supply chains.
traditional fishing families benefit from the Ginning is carried out in the village, and and verification is important in cotton
additional income bought in by utilizing cotton bales are then transported to a production so CottonConnect
their small plots of land alongside the factory 500km away for processing. developed the traceability software
tool called Tracebale, which provides
reassurance of sustainable cotton
supply.
Together, individual ChetCo companies ChetCo now has nearly 25 brands, possible by uptake commitments from
can effectively address, and continue to spanning 11 countries and four brands and manufactures.
Arun Ambatipudi
improve upon, the factors that underpin continents, including two new brands -
Executive Director,
Chetna Organic
both the supply sustainability and
impact value of their cotton. Namely:
No Nasties and Soul Space - selling on
the domestic market in India.
Q What does the future hold?
the economic stability and resiliency, Both Chetna and ChetCo will act as
environmental health, and social welfare best practice teaching/ learning institutes
What are you most proud
Q
benefit that farming communities need
Can you tell us a bit about the for growing high-quality organic cotton
ChetCo Model?
Q of that these initiatives have
achieved over the years?
for producer organizations and emerging
sourcing coalitions around the world. A
over the long term. partnership has just been announced
Access to finance. Chetna has received with the West Africa Sourcing Coalition,
The Chetna Coalition (ChetCo) Together, ChetCo members agree to
13 Croles (~$2 million) working capital with others to come.
collectivizes SME brands and participate in, but are not limited to,
finance with collateral of less than
manufactures for effective supply chain four categories of cooperative-action
10 percent this year. This was made
risk management at the cotton source: mandates to make year-on-year
the organic farming community. improvements to the sustainability,
resiliency, and value of their
ChetCo acts as a coalition to grow,
marketplace, their coalition, and their
scale, and organize their communal
farming communities.
demand to reliably off-take the full
community harvest volume each
season. Members act collaboratively to Q What were the highlights of
2017?
produce value and reduce risk. Each
This year, our value chain coalition
season, members grow the value of
ChetCo had 70 percent uptake against
cotton, their cooperative, and their
production of Chetna Organic’s nearly
farming community. The members
8,000 smallholder cotton farmers. This
work together in efforts to continuously
has grown from 15 percent prior to
enhance the quality, integrity, traceability,
ChetCo’s formation five years ago.
and transparency of their fiber. At the
same time, members send strong Approximately INR 5,500 ($76) was paid
market messages and support per quintal (100 kg), with a premium
sustainable community development of INR 250-600 ($3.47 - $8.32). An Photo: Chetna Organic, India
through efforts in seed purchase, additional INR 176,000 ($2,580) per
healthcare, education, and livelihood quintal was paid in Fairtrade premiums Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases
initiatives for farmers. on around 3,000 MT of seed cotton. an eclectic mix of industry leaders speaking from “inside” their organizations.
The Organic and Fairtrade Cotton Key developments in 2017-18 include: The C&A Foundation’s organic cotton be complemented by additional efforts
Secretariat (OFCS) in India, incubated program in India adopts a hotspot by Solidairdad on addressing the
by C&A Foundation, having now entered • Approval from the government approach to improve the livelihood of water stress challenge in the region by
its third year in Madhya Pradesh, has to set up India’s first center of smallholder organic cotton farmers with promoting micro-irrigation and rainwater
been able to successfully show that excellence on organic cotton a vision to contribute towards resilient management solutions.
the whole is greater than the sum research at Madhya Pradesh’s communities and landscapes.
of its parts. Active participation of leading State Agriculture University. Collectively, at present, the farmers
its diverse stakeholders in Madhya In this journey, C&A Foundation has supported by C&A Foundation and
• Commitment by the government supported four partners – Action partners cultivate 23,378 ha of cotton
Pradesh, including seed companies, to establish at least 100 organic
farm groups, ginners and spinning for Social Advancement, Aga Khan area yielding 6,977 MT lint certified and
cotton clusters across Madhya Foundation, CottonConnect and 3,224 MT lint in conversion. The goal
mills; representatives of research and Pradesh.
academia; policy makers; as well as WWF-India - in training and certifying is to help establish independent self-
brands and retailers has resulted in • Allocation of a separate auction over 34,000 in-conversion cotton sufficient farmer collectives (comprising
leapfrog advancements for organic platform for organic produce in farmers, mainly in the hotspot of of organic cotton farmers) in these
cotton in the the state. This has state-operated agricultural markets. southern Madhya Pradesh (also known hotspots that can engage directly in
significant implications for the global as the Nimar region). In 2018, the the organic cotton supply chain. As the
organic cotton industry, considering that • Deepened industry-academia Foundation also started a program foundation supports a holistic multi-
nearly a quarter of the world’s organic collaboration on non-GM seed with Solidaridad in a second intended cropping landscape approach to organic
cotton is cultivated in Madhya Pradesh. breeding research. hotspot in the state of Maharashtra with cotton farming, these farmer collectives
the eventual aim of engaging 10,000 also stand to gain additional income
On May 8, 2018, C&A Foundation and farmers in organic cotton cultivation. from accessing markets for other
the Government of Madhya Pradesh The organic cotton program here will organic produce.
co-organised a day long celebration on
organic cotton called Cotton Trailblazers.
This event, dedicated to celebrating
Madhya Pradesh’s global leadership
in organic cotton production, brought
together organic cotton farmers, civil
society actors, government and industry
representatives on one platform. The
event has fuelled many conversations
between stakeholders, including farm
groups and brands that shall further the
cause of organic cotton cultivation.
“Seeding the Green Future,” a project participatory research model of this As the availability of GMO-free cotton the project expects to distribute and sell
of the Research Institute of Organic project helps to empower female seed in India remains a big challenge, the multiplied seeds to bioRe® farmers
Agriculture (FiBL) is entering into its and male farmers through enhanced the bioRe® Foundation and its partners and other interested farm groups.
second phase of Green Cotton, collaboration with researchers, breeders, conducted their own seed research
co-funded by Mercator Foundation seed companies, advisors, and the at bioRe® in India. Now, after eight The successful research at bioRe® in
Switzerland and the Organic Cotton textile industry. Current partners include years of extensive work, the project has India involves the active participation
Accelerator, which will run from 2018- Chetna Organic, Pratibha Syntex, completed the required multi-location of farmers, and is focusing particularly
2022. CottonConnect, Action for Social trials to sustain its results and is on the on the evaluation of cotton genotypes
Advancement, University of Gwalior, verge of having new, GMO-free cotton under organic conditions. The seed
The overall goal of this participatory University of Akola, and the Center genotypes for release in 2018. evaluation program is currently in its
breeding project is to improve the for Sustainable Agriculture. Additional third phase, and is collaborating closely
livelihood of organic cotton growers funding would enable us to engage The multiplication of selected seeds is with Dr. S.S. Patil from the University of
through improved non-GM cotton additional farmers in other cotton already in progress. Over the next year, Agriculture Dharward.
cultivars with genetic diversity for growing region of India.
adaptation to changing climate. The
While the impacts of different cotton systems- BCI, Conventional & Organic Environmental Impacts: Socio-economic Impacts:
farming systems on farmers, their in Khargone district of Madhya Pradesh,
livelihood and the environment may be India. • Compared to conventional cotton, • Farmers often learn of organic
broadly understood, there is lack of organic cotton shows lower cotton through social networks.
credible data to support how smallholder The socio-economic study covered negative environmental impacts.
about 1,200 farming households from • Farmers largely perceive organic
cotton farmers are impacted. As a • The acidification potential for farming in terms of the potential
step forward to address this gap, C&A each of the cultivation systems. The
environmental study which was a Life organic cotton is 22 times more for economic benefits.
Foundation commissioned two separate conventional cotton compared to
but interrelated studies – one to assess Cycle Assesment of 1 metric tonne seed • Exclusive organic cotton cultivation
cotton, covered 100 households from organic cotton.
the socio-economic impacts, and is less likely to use pesticides, but
another to assess the environmental each of the cultivation systems. • The global warming potential for some farmers self-reported use -
impacts of three cotton cultivation Some key highlights of the study were: organic cotton is 50 percent lesser this needs to be validated through
than conventional cotton. soil testing.
MetaWear and Grameena Vikas for RESET regenerative organic “in After more than a decade of supporting holder farms certified to organic GOTS
Kendram Society for Rural Development conversion” cotton. Organic Cotton farming in India, three with the plan to double each year for
have co-created RESET, a program that years ago, Sense Organics and five years. By putting farmers first in
targets tribal cotton farmers in India’s • 2018 | Support secured from Armstrong Spinning Mills began to this program, early indications are that
cotton belt, supporting them and their Control Union, the Textile Exchange, develop an organic cotton program in income levels will increase by at least 25
communities as they adopt regenerative and the Rodale Institute to develop central Myanmar. While the country has percent and progress will be measured
organic farming practices. RESET aims the first-ever Regenerative Organic many challenges, the plight of the cotton against the Sustainable Development
to make farming a win-win-win for the In Conversion farming standard to farming communities is considerable Goals while the lint price will still be
environment, society, and economy. As be piloted on RESET farms during with no access to high value markets, competitive with global price of organic
the first vertically-integrated regenerative the 2018/2019 season. extension services or quality inputs. cotton.
program, RESET is uniquely positioned • 2018 | Guaranteed demand from In addition to this, the cotton price
to have lasting impact in these three fluctuates extremely aggressively and With over a quarter of the world’s
USA and EU markets, ensuring population on its borders, an available
areas. price premiums to farmers. with no minimum support price, the
business case for farmers has been very 15,000 acres of rainfed land without
Highlights of the pilot program include: • 2018 | Initial investment and weak keeping many trapped in a cycle GMO contamination and ready for
operations support from the of poverty. organic GOTS certification, a huge
• 2016-2017 | Two successful pilot willingness from farmers, eager to sew
seasons representing 88 tribal government of Andhra Pradesh.
Today, the project has secured financial the benefits of organic cotton farming
farmers receiving price premiums support from C&A Foundation and into their communities, close trade links
the UK’s Department for International with India, Bangladesh and China and
Development, with technical support one of the fastest growing garment
from Peterson and certification and industries in the world.
compliance from Control Union. So
Pure Myanmar, a Myanmar registered To learn more, please contact Kirsten
subsidiary of SO Germany is now Weihe - Keidel.
conducting seed trials on Government
and small holder farms covering 50
acres in organic conditions. With a focus
on seed development and multiplication,
extension services, trade finance,
multi-cropping, market access and full
item level traceability, next year they aim
to plant over 1500 acres under small
Photo: RESET, India
PAKISTAN
INDIA
C&A Foundation
Non-profit Textile Exchange Chetna Organic
Non-profit Farmers Association
(COFA)
WWF Pakistan Industry Association
Non-profit Organic & Fair
Cotton Secretariat
(OFCS) Chetna Coalition
Partnerships (ChetCo)
RBDC
Partnerships
Service Company
Organic Cotton
Accelerator (OCA) C&A Foundation
SIA Foundation Non-profit Non-profit
Non-profit
CottonConnect APEDA
MYANMAR Social Enterprise Governmental
Organization
Sense Organic
Service Company bioRe India
THAILAND Non-profit Pre-Organic Cotton
Partnerships
Government seed Green Net Cooperative
development program Non-profit
Governmental
Organization
1+99+S
NORTH CAROLINA
0.65 MT
58 8,369 26%
Organic Farmers Organic Certified Fiber (MT) Growth
Land (ha) over 2015/16
4,529 496 4%
Organic Cotton Organic In-Conversion Share of Global Organic
Fiber (MT) Land (ha) Cotton Production
5,000
4,000
7+93+S 93+7+S
NEW MEXICO TEXAS
Fiber Production (MT)
3,000
USA
2,000
307 MT 4,221 MT
1,000
0 Adjustment: Please note that the production data reported for the United States
2012-13 2013-14 2014-15 2015-16 2016-17 in the 2017 OCMR was incorrect, and has been retrospectively adjusted.
USA
yielded approximately 20,400 bales of representing ten percent of the country’s
organic cotton, equivalent to 4,529 MT total organic cotton growing land area.
of fiber.
In New Mexico, approximately 307 MT of
The Texas Organic Cotton Marketing organic cotton fiber (seven percent of the 58
Cooperative (TOCMC), a co-op of 35 national total) was grown on 458 ha by Organic Farmers
family farmers based in the West Texas three farming families, two of which grew
High Plains, grew 84 percent of all the Pima cotton. In North Carolina, a small
organic cotton harvested in the USA amount (0.65 MT) of upland organic 8,369
Organic Certified
in 2016. TOCMC grew 17,055 bales cotton fiber was grown on 1.2 ha. Land (ha)
(3,799 MT) from 14,967 harvested acres
TOCMC, in particular, continues to
(6,057 ha) for an average of 1.1 bale per
transition additional acreage into organic 4,529
acre. Approximately 2,510 acres were
production, planting organic cotton Organic Cotton
lost to harsh weather, including hail and Fiber (MT)
on 1,225 transitional acres (496 ha) in
wind.
2016. Several other High Plains farmers
have limited acreage in transition. 1,793
Organic In-Conversion
Land (ha)
26%
Fiber Year-On-Year
4%
Share of Global Organic
Cotton Production
0.1%
USA-based Textile Organic Share of National
Cotton Production
Exchange members
educated USA senators
about organic fiber and
textiles.
Photo: On the Mark PR
Participants at
the Organic
Trade Association
#LiveOrganic event in
New York City.
Photo: Organic Trade Association, USA
Photo: Dr Jane Dever, Professor and Cotton Breeder, Texas A&M AgriLife Research
Sally Fox to withstand soil born diseases on their For the brown color family, fiber length
Plant Breeder, Owner, own and out grow and out produce pest improvements have been achieved, but
pressure. those resulted in reduction of yield, so
Vreseis, Ltd.
I continue to work on intensity of color
Brooks, California
The big challenge was getting the fibers coupled with fiber length improvements
produced to be long, strong, and fine while not compromising yield.
enough for machine spinning. And
Read more inspiring stories from Textile Exchange’s Insider Series here, which showcases
an eclectic mix of industry leaders speaking from “inside” their organizations.
NORTH AMERICA
Textile Exchange
Non-profit
Organic Trade
Association
Industry Association
Texas Organic
Cotton Marketing
Cooperative
(TOCMC)
Producer Organization
00
ORG
DE
O
D
con
con
rd
rd
en en
da
da
t stan t stan
t
t
5,024
(2017)
Other Countries Italy Germany Turkey Bangladesh China South Korea
766 • 238 307 480 • 49 445 • 400 534 • 730 292 • 692 69 • 207
4,642
3,663 3,814 (2016) 3,661 3,643
(2014) (2015)
(2016) (2017)
3,170 3,126
3,085 (2014) (2015)
(2013) 2,516
(2013)
*Please note that the figures detailed on this page reflect the number of facilities certified to produce GOTS/OCS products in 2016, which may differ from the number that actually produced GOTS/OCS certified products in that year.
Textile Exchange is in the unique position of accredited Certification Body (CB). Organic In-Transition Land: In-Transition Land refers to and August 2017 (i.e. covering 2 ICAC years),
being the only organization currently reporting cotton growing practices may vary slightly land that is undergoing the required three-year the data is allocated to the first year (e.g.
on the global organic cotton supply and trends from country to country but common to transition period from conventional to organic 2016). In countries, such as USA, where the
on an annual basis. all is the avoidance of the use of toxic and as required by all organic standards. While no cotton is picked in October 2017 to December
persistent synthetic agrichemicals (pesticides toxic chemicals are allowed during this time, 2017, data for the previous calendar year (e.g.
Our priority is to ensure the accuracy and and fertilizers) and genetically modified seeds. the transition period is required to eliminate October 2016 – December 2016) is reported.
quality of our data, management systems, and remaining residues left in the soil from past
reporting. To that end, with the sponsorship Seed cotton: Seed cotton is the raw cotton conventional practices. Land undergoing the Cotton Producing Countries/Production:
of C&A Foundation, 2018 marks a milestone including fiber and seeds (i.e. pre-ginning first, second and third year of this transition In 2018, Textile Exchange’s systematic
for Textile Exchange in achieving independent cotton). period is referred to as Year 1 (Y1), Year collection, review and reporting of organic
third-party verification on its organic cotton 2 (Y2) and Year 3 (Y3) In-Transition Land, cotton production covers more than 95
data processes to the Global Reporting Cotton Fiber/Lint: Cotton fiber/lint is cotton respectively. percent of overall cotton production volume
Initiative (GRI) standard and Accountability that has gone through the ginning process to and 50 percent cotton producing countries.
Principles for the Organic Cotton Market remove seeds, leaves and casings (i.e. post- Yield: Measured in kilograms per hectare In all, 32 of the 64 cotton producing countries
Report (OCMR). ginning cotton). (kg/ha), Yield refers the amount of cotton have been identified as potentially relevant
produced (in kilograms) for each hectare of for organic cotton production and covered
The following sections sets out the abridged Cotton In-Conversion: For cotton to be land farmed. Yield is typically measured at two by an independently verified systematic data
methodology used to collect, analyze and certified organic, it must be grown organically levels: Seed Cotton Yield (i.e. pre-ginning) and process. This identification process has been
crosscheck the data on the production of on land that has undergone a three-year Cotton Fiber Yield (i.e. post-ginning). based on data collected, publicly available
organic cotton fiber in 2018. transition period from conventional practices records, interviews and correspondence with
(note the conversion period may be reduced Metrics (ha, kg, mt, m, b): This report uses the various stakeholders.
in certain circumstances). While no toxic metric system for measurements and units
Key terms & definitions have been abbreviated as follows. Different Standards (Cultivation): Textile Exchange
chemicals are allowed during this time, the
Organic Cotton: Organic Cotton is cotton that transition period is required to eliminate local units are converted into international, applies a complete list of all standards
is produced according to the IFOAM Principles remaining residues left in the soil from past harmonized units: Ha = hectare (1 hectare = accepted in accordance to “IFOAM Family of
of Organic Agriculture and certified to the conventional practices. Cotton produced 2.47 acres); kg = kilogram (1 kg = to 2.20 Standards.” A systematic completeness check
IFOAM Family of Standards at the farm level. during the three-year transition period is lbs = 0.0045929637955183 US bales = was carried out on all data collected against
At present, the main farm standards include termed Cotton In-Conversion. 0.005882353 Indian bales); mt = metric ton published data by 53 Certification Bodies
the EU Organic Regulations in Europe (EU- (1,000 kg); m = million (1 m = 1,000,000 kg); b across 46 IFOAM Family of Standards.
Reg), USDA National Organic Program (NOP) Organic Certified Land / Land Area Certified = billion (1 b = 100,000,000).
in United States, and the National Programme To Organic: Organic cotton must be grown Data Source: For OCMR 2018, more than
88 percent of organic cotton production
for Organic Production (NPOP) in India. on land area certified as organic to the IFOAM Reporting boundaries,
Family of standards. However, as organic was sourced from Accreditation Bodies (7
Organic cotton is grown as part of a cotton is grown within a rotation system completeness and accuracy percent) and Certification Bodies (81 percent).
production system that sustains the health to build soil fertility, depending on soil and Sourcing data from Organic Cotton Producers
Reporting Period: The data being collected will continue to serve as a source for cross-
of soils, ecosystems and people. It relies climatic conditions, the same piece of land
cover a 12month cycle and are based on validation and to understand farm level
on ecological processes, biodiversity and may also grow a variety of other crops such as
the International Cotton Advisory Council scenarios, as Certification Body data is limited
cycles adapted to local conditions, rather groundnuts, maize and beans. As the scope
(ICAC) harvest year of 1 August to 31st July. to a small set of indicators.
than the use of inputs with adverse effects, of organic certification covers the variety of
In 2018, data for the 2016-17 harvest year
and is grown in rotation with other crops that crops grown, the land area recorded during
were collected. In countries, such as Tanzania,
replenish the soil. Organic cotton requires a a certification process is referred to Organic
where the cotton is picked between July 2016
third-party certification from an independent, Certified Land.
Founded 15 years ago, Textile Exchange is a global non-profit with more than 260 Textile Exchange has three tiers of membership to suit your company or
members that represent leading brands, retailers and suppliers – the quality and organization’s needs, including Friend, Supporter, Partner (Brand/Retailer) and
global reach of which has meaningfully accelerated the use of preferred fibers and Partner (Supply Network). Current Partner level members include:
increased the adoption of standards and certifications in the global textile industry.
As an organization, Textile Exchange creates leaders in the sustainable fiber and
materials sector by providing learning opportunities, tools, insight, standards, data,
measurement and benchmarking—and by building a community that can collectively
accomplish what no individual or company can do alone.
Also: Materials Innovation Lab | Shanghai Different Chemical Fiber Co., Ltd.
It has been a privilege to work with the C&A Foundation again this year, alongside the committed community of organic cotton farmers, manufacturers, brands, and
retailers to generate this report. We would like to extend our sincere gratitude to all that have contributed data, expertise, updates and photos for their continued
and valuable co-operation:
Amish Gosai
Alice Dos Santos China: Latin America: United States:
Evonne Tan Silvio Moraes Sandra Marquardt
Phil Bettany (Report Design)
www.aboutorganiccotton.org
For the latest news and trends in the wider preferred fiber
and materials landscape, look out for Textile Exchange’s
2018 Preferred Fiber & Materials Market Report 2018,
being released soon.