MOVING UP TO THE GOLD STANDARD OF ORGANIC
Browsing through Textile Exchange’s excellent new Farm and Fiber Report, I was struck by the number of “More Sustainable Cotton” initiatives that are now on offer – they are covered for the first time in the 2012 Report. When Textile Exchange started (as Organic Exchange) 10 years ago, the choice was organic, organic fairtrade, or conventional – now there’s a whole multiplicity of programmes, all offering different benefits and operating different sets of rules.
What all these new initiatives share is an easier entry point – if you’re a conventional cotton farmer wanting to change, it’s an easier step up than it would be for organic. That’s undoubtedly a good thing – the challenge of achieving the organic standard must be daunting, along with the requirement to be ‘in transition’ – a form of limbo – for three years while you wait for your changes to take effect. With the new sustainable cotton programmes you’re in with no waiting, an important factor in the uncertain world of farming. Any improvement in sustainability is to be welcomed.
But that easier entry point must be just that – an entry point. The danger is that conventional producers come in to one of these programmes, get the ‘badge’ of sustainability, and then relax – meeting the entry requirements but no more. Most of the programmes counteract this by promoting ‘continuous improvement’ - a series of training and development processes that mean that farm techniques should get better as each year passes. The programmes are so new – only 1 or 2 harvests in some cases - that it’s difficult to gauge how well this is working, but the positive intention is certainly there.
The interesting question for these programmes is whether they see themselves as a destination, or a stage on the sustainability journey. In short – do you join and stay, or ‘graduate’ to organic status when appropriate? An easier entry point and a sequence of continuous improvement is an excellent beginning, but what’s the eventual intention? We in organic would love to see conventional producers getting a taste for sustainability, taking their first steps with one of the new initiatives, and then moving up to the gold standard which organic represents.
In coffee, the 4C Association – a mainstream sustainability initiative – explicitly state their intention that farmers should move onwards and upwards. As they say in their Annual Report, “After complying with the 4C Code, farmers are in a better position to further improve their performance to meet the compliance criteria of more demanding standards”
No doubt the new cotton sustainability programmes are so busy getting started that it’s too early to ask what happens next. But it’s an important question to consider. If we could achieve a range of programmes providing a ‘way in’ for everyone and a globally recognised organic destination, that would be a great contribution to the globe and its people.
Simon Cooper
Chair, Textile Exchange Europe
Simon is chair of Textile Exchange's new European charity. Simon is also founder of CSR Consultancy, a partner in Change Agency and chair of the UK Schumacher Sociey. He facilitates and consults on sustainability issues to companies, industry groups, think tanks, and non-profits worldwide.
Organic cotton is an elegantly simple yet doggedly complex concept. It can be thought of as a product, an agricultural practice, a movement, or even a philosophy. And holistically it is all four! The best organic cotton ‘programs’ are certainly a combination of all four elements, resulting in a tool or formula for delivering benefits to farmers (especially small scale ones), the long-term health of the environment, and ultimately society at large.
Above: Organic cotton flower, Peru. Photo A. Lizarraga, Textile Exchange
Organic cotton programs are also set up to deliver a market driven solution for ecologically and socio-economically sustainable development. However, the economic benefits of organic cotton, once quite tangible due to the relatively substantial ‘price premiums’ in the marketplace, are less clear these days. Many advocates of organic programs lament the inability of ‘the market’ to take over, and donor funding and NGO assistance should gracefully phase out. And for 'just' or responsible trade to deliver the economic benefits necessary for genuine ‘pro-poor’, ‘pro-farmer’ economic development. Too much still depends on NGOs and civil society paying for the ‘value-addition’ of organic on the ground. We know that well founded organic cotton programs are living testament to the opportunities and successes of organic cotton, but investment in and commitment to organic cotton production systems by essential actors in the value chain is still fragile or fragmented. Generally speaking.
There are undoubtedly other concerns equally alarming, such as the rapid spread of genetically modified (GMO) cotton in many organic cotton producing countries. As with healthy market access, access to healthy non-GMO seed supply is a multi-dimensional dilemma due to the range of challenges it presents.
Solutions – whether for trade or seed - need to go beyond discrete value chain actors working in isolation and move towards a more holistic and inter-relational space, potentially acknowledging a degree of co-dependency. Certification provides an element of third party assurance, quality control, and traceability; it can work as the glue that binds each link to each other. But we need to move beyond this too. It’s the human factor that matters most; the de-commoditisation of cotton, and a shift towards a more humane sharing of prosperity.
In this series of Q&A’s we look at the past, present, and future of organic cotton. We consider organic cotton in all it's four guises - as a product, a practice, a movement, and a philosophy. With this wide ranging scope in mind, and our Farm & Fiber report just around the corner, we thought it would be an ideal opportunity to start a discussion forum, and open up the discussion to you.
We also want to refresh your interest in the role of organic cotton as a market driven solution for improving livelihoods in rural communities and addressing ecological decline. Organic provides answers in terms of both farm innovation and a ‘low tech’ (low carbon, low-chemical, low water) method of production and it can also provide a blueprint for farmer-centric rural development and pro-poor trade which can have a lasting and profound impact in some of the world’s most impoverished regions.
For the next couple of weeks we will be asking (and answering) a number of popular questions about organic cotton and looking at some of the common concerns and myths. We also want to know – and hopefully answer – your biggest questions too. So send them in via the ‘comments’ box at the bottom of the page. We hope to hear from you soon!
Tomorrow: What does it mean to be ‘organic’?
This year is International Year of Co-operatives
In 2009 the United Nations General Assembly declared 2012 the UN International Year of Co-operatives. The UN recognises the diversity of co-operatives around the world and encourages governments to create a supportive environment for their development.
The International Year of Co-operatives (IYC) celebrates a different way of doing business, where the members, who own and govern a business, collectively enjoy the benefits instead of all profits going just to shareholders.
Having an International Year of Co-operatives provides an opportunity to captivate the attention of national governments, the business community and, importantly, the general public on the advantages provided by the co-operative model.
Fast facts:
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The co-operative model is on track to become the fastest growing business model by 2020.
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Co-operatives operate in a range of sectors – ranging from banking, credit, housing, health, retail, food, utilities and agriculture.
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Co-operatives are owned by nearly one billion people across the globe.
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Co-operatives employ nearly 100 million people – 20 percent more than multinational enterprises. For example: In Kenya, 63% of the population derive their livelihoods from co-operatives. Approximately 250,000 Kenyans are employed or gain most of their income from co-operatives. (Source: ILO, 2009). In the United States, 30,000 co-operatives provide more than 2 million jobs. (Source: National Co-operative Business Association).
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Co-operatives promote the fullest possible participation in the economic and social development of all people, including women, youth, older persons, persons with disabilities and indigenous peoples.
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Co-operatives innovate to meet the needs of their members, and may offer new products or services—ahead of competing businesses—because members ask for it.
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Organic cotton co-operatives can be found in almost all organic cotton producing countries. A significant amount of organic cotton is produced within the co-operative business model.
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Cooperation has always been a fundamental principle of the Fair Trade movement. This means almost all Fairtrade certified cotton comes from farmer co-operatives.
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For more facts visit Co-operative facts & figures
Sustainability, Community and Co-operatives
Co-operatives are values based businesses owned by their members. Co-operatives provide a sustainable business model that supports the social and economic development of economies, communities, and individuals around the world.
Sustainability and co-operatives go hand-in-hand. In the video below Philippe Cousteau calls for a new economic model, necessary in a resource constrained world, to be rooted in co-operatives.
Philippe Cousteau, Keynote Speaker at the 2011 International Cooperative Alliance General Assembly in Cancun, Mexico on Friday, November 18, 2011
Coop Stories and Textile Exchange
Stories.coop is a section of the IYC website dedicated to storytelling. It aims at sharing the
diversity of the co-operative enterprise model and to telling stories of successful co-operatives around the world. This global digital campaign provides an insight into a large cross-section of co-operative stories from around the globe. During each day of 2012 the IYC will feature a Story of the Day on their Homepage.
Textile Exchange will also be bringing you inspiring and personalised stories from the organic cotton cooperatives we work with. What better way to open than to share news from the Republic of Tajikistan, where the newly formalised ‘Bio Kishovarz Co-operative’ celebrates its new official ‘co-operative’ status.
Tajikistan, officially the Republic of Tajikistan, claimed independence in 1997. Since then the country has grown in stability and is building a trade economy, partly with the help of foreign aid. Mr Sherzod Abdurakhmano, Helvetas Swiss Intercooperation, tells us how a group of organic farmers have undergone their own ‘independence’ and moved from NGO dependency (and donor funding) in their early days to establishing their own stand-alone co-operative.
We will be regularly posting our stories in the Textile Exchange Farm Hub and at Stories.coop
By Liesl Truscott
Farm Engagement Director
Textile Exchange
By Silvere Tovignan - Regional Director for Africa, Textile Exchange
Cotton plays an important role in the economy of African countries that have adopted it as an export crop. From West to East and South Africa, the cotton production system is dominated by thousands of small scale farmers using mostly family labor. Most countries producing cotton export it as a commodity with very little added-value. Apart from Egypt, most cotton varieties produced in Africa are medium staple which makes it suitable for a large range of textile products. The reputation of African cotton is built on the fact that it is handpicked which is a presumption of cleanness as opposed to machine harvesting that mixes cotton with trash from leaves and stems. This presumption can sometimes be wrong. Spinners and some cotton merchants complain about the contamination of African cotton with non cotton materials such as: polypropylene fiber (PP), stones, plastic bags, etc.
Sometimes complaints about cleanliness are used as a way to bargain for a lower price. However, sometimes they are true.
So where does this contaminations come from?
One important comment to make is that if there is contamination in the cotton it may not be the fault of the farmers alone. The responsibility for avoiding contamination is shared among farmers, transporters and ginners.
Above: Harvesting organic cotton using cotton bags, Mali
Contamination can occur during a number of phases:
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during storing, the wind can bring plastic bags on the heap of cotton
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during transportation to the market place, if polypropylene bags are used
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during transportation to the ginnery, if the truck is not cleaned
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during ginning, if the dust suppression and trash separation system at the gin is defect
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after ginning, if the cotton fiber is baled with polypropylene material
In order to preserve the reputation of African cotton and to improve its competitiveness, the ACA (Association of African cotton ginners) and AProCA (Association of African cotton growers) have put in place a chart for the prevention of contamination. This chart is supported by a procedures manual that describes what should be done at each single stage with the recommendation to keep the documentation of the entire process.
Above: Organic cotton separated from trash after harvest, Burkina Faso
The Organic Advantage
Most organic cotton producer groups are aware of the contamination issue and have a control system set up for prevention. For example, during harvesting farmers have to use specific bags made of cotton, each farm has their inspectors who make sure the cotton is cleaned and separated from any trash after picking, and again before weighing the production from each farmer. During transportation to the ginnery, farm inspectors make sure that the truck is cleaned and accompany the truck till delivery at the ginnery. The ginnery in turn has to make sure the cotton cleaning system is operational. After ginning, the cotton fiber has to be baled with woven cotton.
Above: Organic cotton at marketplace encased in woven cotton, Burkina Faso
Textile Exchange will be encouraging best practice
One important priority for Textile Exchange is to review and reinforce the farm control systems of the organic farm groups. We recognize that the contamination prevention system of some groups is better and more systematic than others. This year, TE will be working with the organic cotton farm groups that have best practice in prevention systems in place, and are performing well. We will develop a fact sheet that will be shared with all organic cotton farmer groups in Africa.
Above: Organic cotton baled with woven cotton
The quality and just as importantly the reputation of African cotton need to be maintained and improved. Organic cotton fiber from Africa is produced under strict production procedures to eliminate contamination, which enables it to hold the highest quality attributes.
Written by: Alfonso Lizarraga - Regional Director Latin America, Textile Exchange
Climate change is defined by the United Nations Convention as the "change in climate, attributed directly or indirectly to human activity that alters the composition of the global atmosphere, in addition to natural climate variability observed over periods of comparable time".
The occurrence of climate change has raised concerns in many industries, particularly in agriculture, because this is where more effects will be evident. The changes in environmental temperature, on water (increased flooding and drought), will impact on microclimates, pest populations, and product yield. According to the Food and Agriculture Organization (FAO) it will be difficult to plan agricultural activities, due to increased climate variability. It is assumed that biodiversity will be reduced in fragile ecosystems, such as rainforests. In addition to a changing climatic, and agro-ecological zones, an increased imbalance in food production, and greater geographical dispersion of some pests and diseases will become apparent.
Drought in Brazil
What will the impact of climate change have on the management and production of organic cotton?
It’s not known for certain. However, the temperature increase is linked effectively to the presence of a greater number of pests (boll weevil, bollworm, white flies, pink bollworm, aphids and other pests). This requires some changes in management strategies, particularly in tracking or monitoring insects. Climate change may also generate the change of zoning for planting of several varieties of cotton, to climates less "hot" and less "wet".
What are the adjustments necessary for organic cotton production to adapt to a changing climate?
Some suggestions are:
a) Identify new areas to continue production
b) Implement systems for monitoring the change of ecosystem components
c) Select varieties adapted to future environmental conditions
d) Select alternative pest management techniques which are more effective in adverse conditions.
The countries of the Latin/Central America (Brazil, Belize, Nicaragua, Paraguay and Peru) with organic cotton programs, projects or initiatives for organic cotton production, should evaluate the future context of ecosystem and the relationship of effects of climate change on other regions (Africa and Asia), in order to be making the necessary adjustments.
An interesting document for the process of adapting to climate change is by Lim B. Spanger and E. Siegfried, in 2005. Policy framework for adaptation to climate change: Developing strategies, policies and measures. UNDP. Pp. 274.
For more information on cotton production and climate change please visit: http://farmhub.textileexchange.org/learning-zone/environmental-impacts/climate-change
Espanol:
Algodón orgánico y la adaptación al cambio climático en América Latina
Alfonso Lizárraga - Director Regional América Latina, Textile Exchange
El cambio climático es definido por la Convención de las Naciones Unidas como el “cambio en el clima, atribuible directa o indirectamente a la actividad humana, que altera la composición de la atmósfera mundial y que se suma a la variabilidad climática natural observada durante períodos de tiempo comparables".
Es un hecho que su presencia ha generado inquietudes en diversos sectores productivos, especialmente en el sector de la agricultura, porque es probablemente uno de los sectores en donde más se evidenciará sus efectos. Los cambios en la temperatura ambiental, el agua (mayores precipitaciones o sequías), impactará sobre los microclimas, las poblaciones de plagas y el rendimiento. De acuerdo a la FAO será complicado planificar las actividades agrícolas, habría un aumento de la variabilidad del clima, se asumen que la diversidad biológica se vería reducida en algunos ecosistemas muy frágiles (selvas tropicales por ejemplo). Además de la modificación de las zonas climáticas y agroecológicas, incremento del desequilibrio en la producción de alimentos en algunos ecosistemas, y unan mayor dispersión geográfica de algunas plagas y enfermedades.
Cuál será el impacto del cambio climático sobre el manejo y producción de algodón orgánico?
Probablemente no se sepa a ciencia cierta, sin embargo, el incremento de la temperatura está ligado efectivamente a la presencia de un mayor número de plagas (el picudo, el gusano de la bellota, moscas blanca, gusano rosado, áfidos, entre otras plagas) lo cual requiere algunos cambios en las estrategias de manejo, principalmente en su seguimiento o monitoreo. También generará tal vez el cambio de la zonificación de siembra para algunas variedades, pasando a climas menos “calientes” y menos “lluviosos”.
Cuáles son las adaptaciones que deben hacer los programas de producción de algodón orgánico para ir adecuándose a estos cambios?
Algunas ideas son:
a) Identificar nuevas zonas para continuar con la producción
b) Implementar sistemas para el monitoreo del cambio de los componentes del ecosistema
c) Seleccionar variedades que permitan adecuase a las futuras condiciones ambientales
d) Seleccionar las alternativas de manejo de plagas más eficientes bajo condiciones adversas.
Los países de la región (Brasil, Belice, Nicaragua, Paraguay y Perú) que cuentan con programas, proyectos o iniciativas para la producción de algodón orgánico, deberá ir evaluándose el futuro contexto del ecosistema y la relación con los que afectará a los países de otras regiones (África y Asia) con la finalidad de ir haciendo los ajustes necesarios.
Un documento interesante para proceso de adaptación al cambio climático es: Lim B. & Spanger –Siegfried E. 2005. Marco de políticas de adaptación al cambio climático: Desarrollo de estrategias, políticas y medidas. PNUD. 274 pp.
Our second guest blogger, Carl Pepper, returns to the subject of organic cotton markets. Carl reveals how his business risks are reduced through direct communication, out of the box thinking, and long term business security.
Growing cotton organically has its unique set of issues that challenge us as farmers. Most know and understand the on-farm production concerns of weather, weeds, insects, equipment, and labor. I want to address the issue of market stability.
My greatest fear is to do all the right things to produce a crop and not have anyone want to buy it. This fear comes from the fact that my entire farm is rain fed. This means my yields vary widely and unpredictably. I understand that buyers and manufacturers need a steady, consistent supply to make their business run. That is the big obstacle that seems, at times, insurmountable.
The solution for my operation has come in the form of communication and trusting relationships with buyers. The start was an honest face to face meeting with the major user of our cotton, Anvil Knitwear, in which we laid the cards on the table for all to see.
They explained how they could make adjustments in programs and blends, and communicate with retailers on our behalf to keep a steady demand for a varying supply. We farmers recognized the need to communicate changing crop conditions so the customers have as much lead time as possible to adjust to supply changes. This was, to be blunt, outside the box thinking. They were willing to adapt, just like I have to do with each new weather event I face on the farm. We are farming together.
The change was a move from the "I" perspective to the "We". The obstacles facing organic cotton production can be overcome when we reach the point where we have business and personal relationships that are built on a foundation of truth and trust.
It is a great feeling knowing my buyers are up late at night watching the radar to see if it is raining on my farm. It makes me sleep better.
From the Farm,
Carl Pepper
Texas Organic Cotton Marketing Coop
We are delighted to welcome our first ‘guest blogger,’ Graham Burden, to the Farm Blog. Graham gives a Cotton Specialists perspective on the triggers behind the cotton market and how the whole value chain needs to better understand what’s required to support organic cotton production.
Cotton agriculture is a vital cash crop for many millions of farmers worldwide. The small holder farmer may grow cotton on no more than two hectares and income from cotton is an essential contributor to the livelihoods of farmers and their families.
It is these smallholder farmers and the larger farms in more developed countries that turn cotton into the largest single textile fibre and the largest non food crop commodity in the world.
As a commodity, fibre pricing is dependent on supply and demand. 2010/11 and 2011/12 has seen an extreme rise and fall in cotton prices impacting throughout the value chain from farm to retail, resulting in uncertainty in product pricing at retail and uncertainty in future planning for farmers.
As in any cyclical agricultural commodity in a rising market farmers plant more and yet a one crop per year harvest such as cotton can result in large increases in production coinciding with a decline in demand feeding straight back to lower prices for farmers.
This is the normal “way of the world.”
Those farmers, brands and retailers that have made a commitment to organic cotton have been faced with difficult decisions in these uncertain economic times, the difficult economies of Europe and USA directly impacting the farmers in the lesser developed nations.
The organic farmers and brands who have continued their commitment to organic cotton are to be congratulated. At the brand level there must be difficult decisions surrounding continued support for organic cotton, knowing that customer’s availability of income to spend on clothing has been hit hard. At the farm level it is not difficult to see that farmers could see any decline in organic cotton as a justified reason to switch to conventional cotton, if they have seen the previous financial benefits of growing organically diminish. It is hoped that organic farmers will remain committed to the cause, as it is their efforts, hopefully rewarded with a fair price that is providing “added value” through their endeavours to benefit the environment and their communities.
It is essential therefore that the entire supply chain involved in organic cotton has an understanding of the nature of cotton trade and that decisions to support organic cotton at retail is having the intended benefits – economically, socially, and environmentally at the farm level and at the same time ensuring their customers in the high street feel they are getting good value for money.
It is with this last point in mind that Textile Exchange is committed in 2012 to produce a cotton trade guide outlining the intricacies of cotton trade and providing guidance for retailers and brands to determine that the farmer groups involved in their organic programmes are receiving a fair and reasonable reward for their commitment to the environment and the social and economic benefits to their families and communities. As a member of the working group on this Guide I believe this will be an invaluable tool.
Graham Burden
Consultant at Sustainable Textile Solutions UK Ltd
Coming next, Carl Pepper gives us a West Texas Grower’s perspective of the challenges he faces as in organic cotton producer. Carls reveals the secret to his success and the recipe for a good night’s sleep!
Written by: Prabha Nagarajan - Regional Director for India, Textile Exchange
Indian Organic Cotton… Integrity Guaranteed
Prabha Nagarajan, TEs Regional Director for India, provides an excerpt from the India Section of this year’s Farm & Fiber Report, due out later this month. Prabha tells us how there have been major factors influencing the growth rationalization of organic cotton in India... Tighter regulation is one of them.
The Agricultural Produce Export Development Authority of India (APEDA) is a body of the Ministry of Commerce that has been established by the Government of India by an Act of Parliament in 1985. Many functions have been assigned to APEDA, most importantly marketing and export of agricultural products. In 2010/11 APEDA supported India with the export of 86 products to a value of $157.22 million USD. It is pertinent to note that cotton was one of India’s major exports.
Classifying organic cotton, photo courtesy bioRe India
Another critical role for APEDA is to act as the accrediting body and regulator of all third party organic certification in India. APEDA drew up the National Program for Organic Production (NPOP) which was approved in 2001 by the Ministry of Commerce and all agricultural organic production in India is certified to NPOP standards. NPOP has reciprocity with the US National Organic Program (NOP) and the European Union. APEDA has approved 22 Certification Bodies for certifying organic production in India.
Evidently then APEDA has a huge part to play in ensuring that India’s organic production at farm level is done as per the regulations laid down by the NPOP, and that the certifying bodies accredited by them carry out certification with the highest standards. In turn, the Certification Bodies ensure that the organic farming is carried out ethically by the producing groups. As Textile Exchange has always maintained, integrity is everyone’s business and cannot be assigned to just one player in the chain. Every single link in the chain is entrusted with the responsibility of working with integrity.
‘Tracenet’ is a clear example of how India’s accrediting body APEDA responded to the challenge of streamlining and bringing transparency into certification systems. Two years ago there were allegations about loopholes in the systems in India which were being exploited, and duplication of data, especially with reference to cotton. Tracenet is an online traceability system that ensures all data with reference to the certification of a product is entered and monitored, thus making for tighter regulation.
The checks and balances offered by Tracenet have helped in establishing the veracity and authenticity of data capture and have made duplication difficult or easily detectable.
Clean truck, photo courtesy Chetna Organic
Our last Farm & Fiber Report for the production year 2009/10 made mention of the introduction of Tracenet in India and changes in maximum farm group size that was being introduced in India. After ensuring training for all stakeholders, APEDA has made Tracenet mandatory since June 2010. Tracenet received its share of feedback and was lauded and criticized. However it has evidently played a huge role in rationalizing organic cotton production in India, especially in Madhya Pradesh. Our Farm and Fiber report 2010/11 will analyze the varied reasons for India’s huge drop in acreage and production of organic cotton. Though Tracenet is not the sole reason for the drop, even its most critical detractors will not deny that Tracenet stands vindicated.
Correct labeling, photo courtesy Chetna Organic
India is “Country of the Year” at Biofach 2012. One of the key messages that India wants to communicate to the rest of the world when they think of India as an organic producer, is that India is a credible sourcing country. Though India started out as a big producer of organic tea in the early nineties today the basket of export products includes a broad range of products such as the aromatic basmati, spices, medicinal herbs and nutraceuticals, horticultural products, coffee, and edible oils. Cotton continues to play a major role in organic exports accounting for about 45 percent of the total exports (NCOF). Tracenet has certainly contributed in no small way to re establishing the credibility of India’s organic cotton.
By: Liesl Truscott - Farm Engagement Director, Textile Exchange
As I sit back at my desk, breathe in, and think about “what next?” “What now for 2012? And “What do we want to be able to look back on this time next year and feel a sense of satisfaction... of purpose... of really making a difference?”
We saw 2010 begin to send ripples of uncertainty down many people’s spine. Organic cotton production and markets had been increasing beyond our wildest dreams, despite the economic crisis a few years back, the on-going value chain transparency problems, and the patchy investment in capacity building on the ground. Production continued to grow, particularly in India, with the farmers taking pretty much all the risks.
Come 2011, some might say our bubble had burst. We saw prices spike for raw materials having a knock-on effect for organic cotton, and an on-going conservativeness in the market (despite the strong placement of ‘ethical’ products and the increased interest in ‘sustainability’). We also saw confusion and competition, rather than seamless collaboration amongst the ‘more sustainable’ cotton initiators. And possibly worst of all (in my opinion) a relentless message to get prices for sustainable options down to the same price as ‘conventional’; all well and good if the conventional price reflects a ‘fair price’ but stressful for all – except perhaps the more naive of the world’s shoppers – if it doesn’t.
So what now for organic cotton?
I see 2012 as a year for maturation and stabilisation of the organic cotton sector, ensuring the positive impacts are reaching each and every farmer, and that all organic cotton projects are excelling. Our pioneers and innovators must take a strong leadership role. We need their expertise, experience, and quite frankly their conviction to guide the industry to the place we know it can be.
Below are my top five ambitions, some personal, but mostly aspirations I know I share with my colleagues, and hopefully the industry at large.
1. Seed security: Farmers having easy access to good quality, non-genetically modified seed that performs well in ‘low input’ organic growing conditions.
Photo: Chetna Organic - Seedling nursery, India
Why this is a priority: Over the past few years we have seen a push to increase the use of genetically modified (GM) seed in cotton production and expressions of interest by countries not yet legally allowed to use it. Non-GM seed has gotten scarce and been neglected by the agrichemical companies. Organic (and Fairtrade) certification does not allow the use of GM seed (which generally-speaking requires higher inputs of agrichemicals and water). Regardless of the pros and cons, farmers (and consumers) of any crop should be allowed the choice. Seed ‘sovereignty’ similar to food sovereignty states that people should have the right to certain things, such as saving seed for their own reuse.
What we plan to do about it... This year, funding permitting, Textile Exchange hopes to better support the fantastic work going on in a number of countries by dedicated experts, and other ‘seed stakeholders’. Our role will focus on joining up individual efforts to help systemise a collaborative network/movement, thus helping raise awareness of concerns and achievements, helping exchange knowledge and formulas of successful initiatives to other areas less developed, co-ordinate policy recommendations, and provide an access point for TE members to get involved.
2. Responsible business practice and investment in organic cotton: Farmers and their supply chain ‘partners’ working together to find ways to improve security of business that benefit all involved, and ultimately agreeing to long-term trade arrangements.
Photo: Bothling, Remei AG – Farmer training academy, Tanzania
Why this is a priority: There simply still isn’t enough investment in capacity building on the ground. This leads to insecurity in business development and an increased risk to business security for all. Ultimately suspicion, opportunism, and all the worst aspects of self-preservation come to play. The best way to achieve stable prices, improved product quality, reliable supply, etc. is through working more closely within supply chains, not by keeping a guarded distance. Yes it’s terrifying to rely on trust rather than an anonymous market to feel ‘safe’ but there are now plenty of examples of where ‘relationships’ are working, many of them built on a growing recognition of needing to look after a secure supply of raw material. It’s an ideal time for the more courageous (or the more evolved) businesses to test the waters and take a calculated risk! Plus, let’s remember why we are all doing this in the first place: to use trade as a vehicle for improving lives.
What we plan to do about it... Alongside our continuous messaging on the subject and support to our members, this year we are working collaboratively with a select group of early adopters and change agents to produce a Guide to responsible trade. The Guide will be aimed at brands and retailers to help them pave the way to better ways of doing business, either through direct engagement with producer groups, or with supply chain partners, through developing a deeper understanding of trade at the farm gate and how they can best support more responsible and transparent trade.
3. Further establishment of organic as the ‘Gold Standard’ in cotton production sustainability: Organic cotton farmers being clearly recognised and rewarded for their contribution to sustainable development.
Photo: Kings Group – primary schooling, Pakistan
Why this is a priority: There is an ever-increasing pool of evidence, based on reliable research, to confirm that organic agriculture is a successful way to future-proof our food and fiber production. We need to embrace this reality and increase our support in mainstreaming organic cotton production. We now know that organic agriculture offers less contaminated environments and workplaces, less burden on water ways, more fertile / less erosive soils, less demand on fossil fuels, greater potential for maintaining biodiversity, and better adaptation characteristics to climate change. Agricultural production systems offer a greater potential for food security and income diversity, particularly for producers in developing countries, due to the number of crops grown within the organic ‘system’. It is our priority to better communicate the benefits and support our member companies to actively engage in organic cotton agendas and bring organic to scale.
What we plan to do about it... In order to shout about the sustainability benefits of organic cotton we need to know that the benefits we hear about, and see amongst the best producer groups, are indeed the norm. This year we will be undertaking a major ‘Impact Survey’ based on ISEAL KPIs of sustainability, asking organic cotton farmers about their social and environmental policies, production, and practices. We want to be certain of their achievements and dig out as many quantitative measures as possible – We will be gathering evidence of what works best, what can be passed on to others, what’s not working, where further investment is needed... And how the textile community can best support farmers.
4. Promote leadership and continuous improvement: Lessons learned by pioneers, industry leaders, and early adopters are being shared and the way is clear for others to follow.
Photo: Anvil Knitwear – organic cotton leaders, USA
Why this is a priority: As we celebrate our 10th anniversary at Textile Exchange, we believe it is a good time to thank our leaders. These companies and organisations have seen an opportunity in organic cotton that is good for the triple bottom line. Not always plain sailing, straightforward, or immediately financially rewarded, our industry leaders: farmers, manufactures, brands, and retailers have transformed our understanding of what can be achieved at the farm gate. They are now the ones that are investing in other innovative materials, cutting carbon, removing more and more toxics from their manufacturing, and are forming partnerships to achieve the proverbial ‘win-win’. What better time than in our 10th year to bring pioneers and recent innovators into the lime light; not least to share their stories and inspire others?
What we plan to do about it... Over the course of the year, as we build up to our 10th annual conference in Hong Kong later in the year, we will be finding creative ways to share stories. First up, is our ‘Inspiring Moments’ snapshot gallery (up and running on our Farm Hub). Soon to come will be our ‘Future Shapers’ postings, delving into the motivations and success stories behind some of our favourite companies and producer organisations. Keep an eye on our website for updates.
5. More – and smarter – collaboration across the cotton initiatives: Diverse cotton sourcing strategies are built positively and collaboratively by brands, retailers, and supporting organisations.
Photo: Pedro Rivera – field training, Peru
Why this is a priority: There is a healthy recognition that we need to take better care of cotton production: for both the environment and the people involved in its production. What’s also healthy is the variety of approaches being taken to achieve more sustainable production. Whether it’s reducing the harm incrementally by targeting mainstream production (such as the Better Cotton Initiative, ‘Cleaner Cotton’, Integrated Pest Management, Best Management Practice), focussing on improving trade and development in Africa (Cotton Made in Africa), or through established certified schemes such as organic and Fairtrade production - there is room for all!
What we plan to do about it... Our priority at Textile Exchange is to support producers and other member organisations, (right through the supply chain) to invest in organically produced – fairly traded - cotton, since we know – when carried out according to the principles of organic certification – that it works. We also know that the best producer group initiatives are achieving way beyond farm sustainability and are contributing to sustainable development at a community level. This really needs to be seen to be believed! Our goal is to see more organic cotton initiatives benefiting more rural communities, particularly in developing countries. However, we see the benefits for some of our brand and retailer members in a diverse supplier base, supporting, and enabling a mix of initiatives to be brought to scale. This year, we continue to encourage organic cotton investment (in ways mentioned above) and will be working collaboratively with Cotton Connect our sister organisation on brand strategies that may encompass a mix of the initiatives on offer.
Finally, if I am allowed a sixth ambition... the combination of all the above, resulting in innovative designs, and sustainable products, that supports the use of business and trade as a vehicle for a better world.
We can all be change agents in 2012. I believe the current buzz words such as ‘collaborative competition’ and ‘shared value’ – whether they are any more worthy than ‘community investment’ and ‘corporate responsibility’ doesn’t really matter – they reflect our evolving understanding of inclusiveness, equality, and doing better business. What’s important is that we do ‘business as if people mattered’ – we put people at the heart of our mission statements and our business strategies. Not just our own generation but for those that follow.
I have seen the difference organic agriculture can make to farming communities, by improving livelihoods, and contributing to healthier happier communities. It requires investment, and commitment, from us all to get the best results.
Please join us in 2012 and help us build the capacity necessary to mainstream organic cotton, and catalyse better livelihoods for rural communities.
Thank you and Happy New Year!
Liesl
By Liesl Truscott, Director Farm Engagement, Textile Exchange
It’s a sad situation when ‘doing the right thing’ places an organization at risk. Yet, we saw just recently how true this can be when the company Victoria’s Secret, and the NGOs Fairtrade International and Helvetas, were accused by Bloomberg Press of not ‘getting it right’ in Burkina Faso.
Further investigations by Fairtrade International and LimitedBrands (owners of Victoria’s Secret) are showing that things are not quite as Bloomberg painted them. But what I want to talk about today is how far we still have to go towards ensuring that trade is a vehicle for improving livelihoods across the globe and how important certified programs are if we want this to happen. The need for systems to guide ethical business, the procedures for building in integrity, and corporate commitment, are still critical to success. Ideally, businesses mature to a place ‘beyond certification’ but we are clearly not there yet.
Without dwelling on the objectives behind 
Bloomberg journalist Cam Simpson’s story of ‘Clarisse’ it’s probably enough to say it wasn’t very constructive, even if he had got his facts straight. Impressively, the accused parties have responded rationally, sensitively, and immediately to the allegations by traveling to the farms in Burkina Faso and checking the systems in place. It's times like this that reminds us how much we all (including the media) need formal processes in place to keep records, protect an individual’s rights, and look after an organization’s reputation. LimitedBrands would have been thankful their systems were robust enough to get to the bottom of the allegations so quickly and be in a position to publicly declare a different story based on required record keeping and third-party documentation.
Internalizing the costs of production
Sometimes the question is asked about what we are paying for with certified products. Among the many worthy objectives of Fairtrade and Organic initiatives is an attempt to build in the ‘costs’ (both the environmental and social costs) of doing business. These costs are usually externalized; not ‘owned’ by the business operators, and are therefore not accounted for in the price of the product. externalizing these costs of production has sadly always been commonplace, and what’s most upsetting is that it’s always the most vulnerable members of society that are affected by them. Whether it’s localized water pollution, soil infertility, or pesticide exposure leading to illness, disease, even death; vulnerable people and ecosystems are damaged by the negative side-effects of business.
The thing that’s changing over time is the direct impact back onto the business. The once ‘invisible’ consequences of externalizing environmental and social degradation is truly starting to affect business productivity, and inevitably profitability. Fairtrade and organic production is not necessarily getting ‘cheaper’ but conventional farming (including the cost of raw materials) is most certainly getting dearer. We are seeing this with many commodities such as cocoa, coffee and beauty products, which as a result, are further ahead in addressing shared value and building business partnerships, than cotton. This leads us to the importance of systems such as Fairtrade and Organic certification as ‘change agents’ if you will, to improving business practices.
Great thinkers on the subject of shared value, such as Michael Porter and Mark Kramer, will say that building competitive businesses based on product quality and so on are essential for addressing poverty. And while this is true, ‘positive discrimination’ (on the proverbial unequal playing field) based on rewarding operational internalization of environmental and social impacts, is still necessary; not till we move into an age of internalizing these impacts, and until other systems provide the checks-and-balances, can ‘fair-and-ecologically-sound trade’ stand on its own two feet.
Fairtrade and Organic projects are not a ‘handout’. Producers are not paid more for simply being poor and marginalized, they are incentivized through financial rewards for their contribution to sustainable development; something that society as a whole will agree is justifiable. This means the environmental and social costs of production are brought into the equation - internalized, even while the ‘conventional’ market in effect encourages hiving them off to other parts of society to pay for, or clean up after.
Why we still need Certification
It is fair to say things are changing; often in 
response to the dwindling of the earth’s resources and recognition that more sustainable production is good for the bottom line as well as reputation. Organic and Fairtrade Organic initiatives are also behind the change; acting as the beacons or the ‘gold standards’ in sustainable production, Organic and Fairtrade Organic projects show the rest of the industry what can be achieved through formalized improvement systems based on holistic (people and ecosystem) sustainability criteria.
Standards based on sustainability criteria are developed to help guide producers, companies and consumers; including systems to train, organize farmers, and monitor compliance are put in place to ensure the integrity of the system, and labels are applied as a convenient way for consumers to identify and reward ethical business.
They don’t come cheap but they pay back in terms of risk management, reputation, and quality systems management. Evidence gleaned by Business In the Community shows that companies performing well in CSR are also leaders in successful business, and further find implementing integrity systems more efficient and effective since its fully embedded into the way they do business.
Beyond Certification
Critical to the whole system working is a 
commitment to integrity and the courage to go beyond business as usual. I think the phrase coined by green economist E. F. Schumacher -“doing business as if people mattered” – is particularly useful since it sums up how taking care of people is not automatically considered by conventional economics. Relearning family and community values, such as looking after the vulnerable (and that includes children) is everybody’s businesses. This is something that the ‘shared value’ fraternity subscribe to but it does require very close working relationships to ensure complete confidence it is being delivered. It requires going beyond certification.
Going beyond certification is being promoted by the think tank SustainAbility and if you haven’t taken a look at their latest report Signed, Sealed... Delivered? yet it’s worth a go. Essentially, SustainAbility is pushing companies to not stop at certification but to move beyond to ‘collaborative competiveness’ which takes progressive companies to an even higher position of personal accountability and delivery of responsible business.
At Textile Exchange we use our three pillars: Informing, Connecting, Leading, to help support our members on their sustainability journey. Creating that platform – and a safe place - for sharing and learning we believe is a great place for companies to build their integrity measures and dare to be more courageous. We don’t think pointing the finger at those risking business reputation by going beyond business as usual (which is what Victoria’s Secret is doing by investing in Fairtrade Organic production initiatives in one of the poorest countries on Earth) is going to help either improve integrity or encourage courageousness.
We do hope, however, that the recent Bloomberg article will refresh our sensitization to the heart-wrenching reality of illegal child labor taking place in war-torn poverty-entrenched countries, such as Burkina Faso, and renew our vigor in taking action to bring about change. It will require systems that monitor activities and build in integrity. But most of all it will require courageousness to get stuck in, even when the starting position is so far from where we want it to be.
Please share your thoughts and help us encourage constructive debate on this topic!
See our website for information on Industry Integrity and Integrity at the Farmgate