Organic production will need to expand five-fold by 2020
The world over cotton prices are falling. The demand for cotton is expected to grow, especially that for organic cotton. Being the largest producer, supplier and consumer of cotton, China plays an important role in the global cotton industry. Chinese farmers are switching over to other crops because of the prevailing market prices. This may have an adverse effect on the global cotton industry, as per the findings of CottonConnect, a company serving retailers and brands and cotton farmers through the creation of sustainable supply chains. Alison Ward, CEO of CottonConnect discusses these issues with Fibre2Fashion.
How can brands contribute towards eliminating the problem of declining cotton production in China?
This can be done in a number of ways:
1.Support for sustainable farming practice: better soil, water and pesticide management;
2.Support for farmer finance and literacy: help farmer to tackle real and practical challenges;
3.Encourage rural entrepreneurship in cotton communities: support next generation of entrepreneurs in the cotton sector.
How do you help in creating sustainable supply chains for brands as well as farmers? How do you function?
We are a social enterprise, pioneering a transparent and sustainable cotton supply chain – all the way from retailers to farmers and building a sustainable future for the cotton industry. We believe in a market-driven approach that provides opportunities for retailers and brands as well as farmers to simultaneously expand economic opportunity, reduce poverty and protect the environment.
More specifically, we connect retailers to cotton farmers through:
1. Assisting brands to develop and build sustainable cotton strategies and map their supply chains.
2. Building capacity and connecting the whole value chain: CottonConnect carries out farmer training (sustainable farming practice), connects the fabric makers or spinners to farm projects that are growing cotton, and supports the procurement of cotton by suppliers.
3. Monitoring impacts and helping brands and retailers in retail messaging and goal related messaging.
What are the common complaints that you get to hear from cotton farmers across the globe?
The most common are (in no particular order) are low cotton price combined with high input cost; the water scarcity challenge (which we reported late in 2014); soil degradation; difficulty in accessing the market and lack of market information; and the fact that there is no premium price for sustainable cotton.
Which brands are you working with at present?
More than 20 pioneering brands – including John Lewis, C&A, Primark, Burberry, and Marks & Spencer.
Given that there are an increasing number of alternatives to cotton fibre available for the textiles industry, how important is it to ensure security of cotton supply?
As a natural and renewable fibre, cotton can convert to a fibre without intermediate processing steps. This makes cotton more cost-effective and environment-friendly when compared to other alternative fibres. Meanwhile, in many countries, cotton is one of the most important fibre producing plants, and thus provides a traditional and important livelihood for farmers in developing countries.
Why do you think cotton farming is becoming less appealing to Chinese farmers? What other options do they find attractive now?
The drop in cotton price primarily makes cotton farming less appealing – they will grow other cash crops instead, depending on the country and, in the case of China, region.
What is the reason for the fall in cotton prices internationally?
There are multiple factors, but the main ones are purely market related – the price of other fibres, cotton availability and demand.
Ensuring that China has a resilient cotton supply chain is in the interest of the global textiles industry? Do you agree?
Yes. China is extremely important to the global cotton industry. As the world’s largest producer, importer and consumer of cotton, it holds around 58 per cent of the world’s total stockpile of the raw material.
What exactly is the market opportunity for brands in the Chinese cotton industry?
At a strategic level:
1.More competitive cotton prices in China;
2.High quality cotton with string downstream infrastructure;
3.Greater sustainability becomes a licence to operate.
At farm level:
1.Demonstrate leadership and support for farmer finance and literacy;
2.Support for effective water management;
3.Encourage rural entrepreneurship in cotton communities.
Can organic or sustainable cotton help cotton farmers in China to fetch bigger margins?
Yes. There are several market opportunities in sustainable and organic cotton. There is a global increase in the demand for organic cotton, and if the projections are correct, organic production will need to expand five-fold to meet projected demands by 2020.
Organic cotton will see greater demand in future. Are major cotton-producing countries geared up for this? How does CottonConnect contribute in helping farmers to prefer organic over traditional cotton?
As demand for organic cotton grows, production would need to grow five-fold in order to meet projected demand in 2020 (Source: Textile Exchange or Organic Cotton Accelerator). We are working with 23,000 farmers in India to demonstrate the business case for producing organic cotton.
What can be done to limit the impact of climate change or uncertainty on cotton yield?
Sustainable farming practices such as focusing on soil, water and pesticide management, and generally improving biodiversity. It’s also pertinent to increase cotton cultivation’s resilience to climate change.
What are the challenges facing production of organic cotton?
1.Access to good seed;
2.Knowledge and training;
3.Access to other inputs – bio-pesticides, etc;
4.Market demand and premium price;
5.Time to restore soil quality.
