Just as consumers increasingly link their health with what they
eat, many are questioning how what they wear impacts on the
environment. And one of the big winners is the organic cotton
industry.
Alerted by sustained environmental campaigns, conscientious
consumers are learning that cotton is just about the most
chemical-intensive crop on the planet, accounting for just 2.5% of
farmland worldwide, yet contributing 25% to all fertiliser use and
10% of chemical pesticides (which are also a major source of
illness for agricultural workers). Furthermore, the production of
cotton consumes huge quantities of water, and often in places that
can least afford it. It costs more to produce organic cotton but
more and more consumers are prepared topay extra to reduce the
environmental impact. While eco-friendly clothing is not the new
fashion standard, growing consumer interest is boosting growth in
the organic cotton industry by a rate of 50% each year.
Organic cotton producers can't keep up with demand yet many
exporters see risks in making the conversion to organic. Consumers,
buyers, national governments and industry associations all have
their role to play in helping organic cotton reach more retail
shelves. To help developing-country exporters make informed
choices, ITC has published a comprehensive report on the
industry.
Demand Outstrips Supply
The first certified organic cotton was produced in the early 1990s
in Turkey and the United States. By 2006, 22 countries produ-ced
organic cotton and world trade reached 23,000 tonnes - four times
more than in 2001. Today, around 20 companies use more than 100
tonnes of organic cotton fibre per year, and two-thirds of them
only started selling organic cotton textiles and clothing after
2002. Major retailers of organic cotton products include well-known
brands like Wal-mart, Nike and Coop Switzerland. Organic fibre
traded on the international cotton market still represents only
0.09% of the 24.8 million tonnes traded worldwide, according to the
ITC report, but demand is outstripping supply and is likely to
continue to do so in the near future. There is an obvious
opportunity here for organic cotton producers in developing
countries, so what's stopping them?
Challenges
The first significant obstacle to a developing-country exporter
breaking into this small club is, well, just that: breaking into a
small club. More than half the global production is in the hands of
two companies - one in Turkey and another in India. And some 25
large brands and retailers take up 50-60% of the total. Despite the
growing market, there also appears to be mixed messages from
companies. While many adopt organic cotton, citing their commitment
to corporate social responsibility, their communication to
consumers is often limited. And some brands and retailers do not
want their products to be associated with organics at all - instead
marketing their products on image, design, colour, fit or price.
There are also mixed messages from consumers. For example, the
cotton specialist of British retailer Marks & Spencer observes,
'Our customers are just more interested in fair trade than
organic.' In this case, farmers are more likely to explore fair
trade certification options, rather than organic ones.
The conversion costs for farmers are another significant burden.
A few years ago, organic cotton could easily be added as a
rotational crop but, today, it takes three years for conversion
before the crop can be sold as organic. The costs of inspection and
certification add to the bill, while production is generally more
labour intensive and yields may be lower than in conventional
production.
Solutions
ITC has been looking at ways policy-makers and trade support
institutions can help build organic cotton capacity in developing
countries, and help cotton growers access this growing market.
First and foremost, public and private bodies could make it easier
for farmers to convert to organics through better access to
information about organic farming, including extension and
marketing support. Financing schemes should be made available for
the costs of control and certification, and low-interest funds for
investment in organics should be created. Processors should be
encouraged to adopt cotton-blending programmes. Blending yarns
(with usually about 5% organic) has been little rewarded by brands
and retailers but as the ITC study observes, 'blending programmes
are a useful tool to introduce spinning and textile mills to the
world of organic cotton, and may be considered a stepping stone
towards the production of 100% organic cotton items'. The organic
cotton sector should consider such movements as allies rather than
competitors.
There also needs to be more targeted information for cotton
ginners and exporters to invest in organic agriculture. Mainstream
cotton researchers haven't focused on organics so ginners and
exporters have to rely on external sources for information in the
short term.
Further streamlining and ratifying certification is necessary.
The textile industry needs a common approach in the niche market of
organics to create awareness among, and reassurance to, consumers.
Global Organic Textile Standards (GOTS), developed by several
certifiers, has committed to implementing uniform standards, which
the ITC report sees as 'an important step towards harmonization and
transparency of textile labels'. Adopting GOTS in the industry
could be a first step to binding rules for ecological and social
processing of textiles and clothing. But the textile and clothing
industry and governmental bodies may need to revise and develop
these standards to help them make it into legislation.
For more information see:
Cotton Exporter's Guide, available
at:www.intracen.org/eshopITC's Organic Link website
at:www.intracen.org/organics
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ITC recommendations for building capacity in
organic cotton
- Provide information and financing to producers in the process
of switching to organic
- Encourage blending programmes as a stepping stone towards 100%
organic
- Target cotton ginners and exporters in developing countries
with specific information on organic cotton
- Streamline and ratify certification
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