Organic Cotton Market Report 2021 - Textile Exchange
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Organic Cotton Market Report 2021 Covering production trends and industry insights from the 2019/20 harvest and beyond.
About this report
The Organic Cotton Market Report Where data gaps exist, Textile Exchange
provides a unique analysis of key data attempts to replace these values with best
and emerging trends in organic cotton estimates from historical or comparable
production at global, regional, and country proxies. Data submitted may change due to
levels. Each year, the report uses data from corrections or updates from data sources.
the previous harvest season and insights
from industry insiders to shed light on For the purpose of this report, the term
current issues and priorities for the organic "organic cotton" does not include any
cotton sector. uncertified naturally grown cotton, nor does
it make any statement regarding the integrity
Textile Exchange has collected data and beyond its certification, or the numbers
insights on the global production of certified submitted by our data providers.
organic cotton for over 15 years and remains
the only organization to do so. We believe In selected cases, where data can only be
such information is critical in facilitating growth obtained from one source, triangulation and
of the sector and therefore also in facilitating validation of data may not be possible and the
progress towards Textile Exchange’s 2030 data is accepted as it is. See our Methodology
Climate+ goal. The report allows companies for full information, including a breakdown
to make informed sourcing decisions, discover of the data sources used for each of the 34
new sourcing destinations, hear from others in countries analyzed in the preparation of this
the sector, and address current supply chain report, alongside a confidence level on the
challenges. data received based on results of triangulation.
For the latest production news and trends Another important point to note is that the
from the wider preferred fiber and materials land area figures shared in this report refer
landscape, check out our sister publication to total land certified to an organic standard
the Preferred Fiber & Materials Market Report by a producer group growing organic cotton.
(2021 report due for release in July 2021). The same piece of land could be used to
grow other organic crops as part of a rotation
Disclaimer system, a fundamental element of organic
agriculture. This means that reported land
The data shared in this report is intended area figures do not necessarily reflect solely
to be a snapshot of production and makes the land area used to grow organic cotton
no claims to represent total supply. While and, as a result, may seem disproportionately
Textile Exchange carries out a systematic high compared to the organic cotton volumes
completeness and accuracy check on its harvested. The same applies to in-conversion
data collection process, we rely on our data land which may or may not be used to grow
providers for data accuracy and integrity. organic cotton upon full certification.
Back to Contents Cover photo: © Sanko Textile | Organic cotton farmer | Turkey Photo: ©Atalo Belay for PAN Ethiopia | A smallholder farmer
harvesting his organic cotton | Ethiopia • 2
What’s inside
Welcome 4 2019/20 organic cotton production 26 Standards & certification 74
The year in numbers 5
Global overview 27 International voluntary standards 75
Meet this year's industry insiders 6
Historic trends 29 OCS & GOTS certified facilities 2020 76
Sub-Saharan Africa 30 Eastern Asia 52 Global ISO IWA 32:2019 Proficiency Test
Current trends and priorities 7 Initiative 77
Regional overview 31 China 53
Keeping up with demand 8
Benin 32
In-conversion cotton 10
EMENA, Central & Western Asia 55 Get involved 78
Burkina Faso 33
Regional overview 56 Organic Cotton Round Table 79
Regenerative 12
Ethiopia 34
Egypt 57 Material Change Index 80
COVID-19 13
Mali 35
Greece 58 Textile Exchange Membership 81
Seed innovation 14
Senegal 36
Kyrgyzstan 59
Traceability & transparency 15
Tanzania 37
Tajikistan 60 Methodology 82
The price vs. value paradigm 16
Uganda 38
Turkey 61
2019/20 pricing snapshot 17
Zambia 39
Uzbekistan 62
Social context 18
Latin America & the Caribbean 42
Southern & South-eastern Asia 64
Impact 19
Regional overview 43 This report is interactive.
Regional overview 65
Climate 20 Navigate using this page
Brazil 44
India 66 and return using the
Soil health 21
Peru 45 “Contents” button at the
Myanmar 70
Water 22 bottom of each page.
Northern America 47 Pakistan 71
Biodiversity 23
United States 48 Thailand 72
Livelihoods 24
Impact data 25
• 3
Welcome Thank you
The early 1990’s marked the beginning of The climate is calling, and we can’t ignore The production of this report is only possible photos for this report. Please take time to look
organic cotton production’s expansion as it. We don’t have another 30 years to thanks to each and every organic cotton at the full list of acknowledgments at the end
countries worldwide adopted national organic grow by another one percent - we have producer, certification body, accreditation of this report. Thank you all for your continued
standards. less than nine to make radical, systemic body, organization, gin, trader, distributor and and valuable co-operation and, most
changes. Fortunately, all signs point other stakeholder who has taken the time to importantly, for working to grow the market for
Flash forward 30 years and 2019/20 marks to hugely accelerated demand for organic share data, expertise, updates, insights, and organic cotton and agroecology more broadly.
a record year for organic cotton. Despite cotton in the coming years as brands ramp up
the Covid-19 scourge, 2019/20 witnessed use of the fiber in their product lines.
the largest volume of organic cotton fiber
harvested globally to-date. And while the tried- Can you imagine if we could help mitigate
and-true players – India, China, Kyrgyzstan, climate change by dramatically decreasing the
and Turkey – continue to lead the way, billions of pounds of greenhouse gas-emitting
countries in East Africa (Tanzania and Uganda) synthetic fertilizers applied to cotton by We also want to thank Textile Exchange
were the biggest contributors to the year's increasing the use of soil building practices like members for their continued support and
global growth. rotation and cover crops along with compost leadership.
and other natural inputs? Well, we can’t just
It’s taken a lot of learning, collaborating, and imagine. We have to act.
visioning to get to this point – one we should
Together, we can collectively accomplish
celebrate. Organic production systems are at the tip of what no individual or company can do
the spear driving best practices across the alone.
But even with this growth, organic cotton still entire textile industry. Organic cotton is one of
only represents roughly one percent of the the proven solutions for meeting our Climate+
global cotton harvest that season. That’s not goal. It is time to dramatically scale-up the
enough. use of organic cotton and send clear and Visit our website to learn more about how
Textile Exchange’s Climate+ strategy
committed market signals to shift from the Textile Exchange membership can benefit you.
current price paradigm system that creates
recognizes the urgency of climate change and
the pollution, poverty, and problems to a value
sets a goal of 45% reduced greenhouse gas
system that promotes and support life – life for
(carbon dioxide equivalent) emissions by 2030
the soil, the farm, the family, the community
in the pre-spinning phase of textile fiber and
and our planet!
materials production.
Together we can make the difference.
Organic soils are known to lock away, or
sequester, far more carbon than conventional
soils. What’s more, common organic practices
of using compost and manure have the
La Rhea Pepper
biggest impact in the shortest period of time.
CEO,
Textile Exchange
Back to Contents • 4
The year in numbers
2019/20 organic cotton production snapshot
229,280 588,425 3.9%
KYRGYZSTAN 12 %
TAJIKISTAN 4 %
TANZANIA 5 %
TURKEY 10 %
OTHERS* 5%
Organic certified Organic cotton fiber
CHINA 12 %
Organic cotton farmers
U.S. 3 %
land (ha) (over 2018/19) INDIA
50 %
249,153 50,552 21
Organic cotton Organic in-conversion Countries growing
fiber (tonnes) land (ha) organic cotton
* Uganda (4,734 tonnes); Pakistan (2,026 tonnes); Greece (1,720 tonnes); Benin (1,373 tonnes);
Peru (712 tonnes); Burkina Faso (574 tonnes); Egypt (238 tonnes); Uzbekistan (165 tonnes);
Ethiopia (148 tonnes); Brazil (134 tonnes); Mali (85 tonnes); Myanmar (32 tonnes);
Thailand (5 tonnes); and Senegal (3 tonnes).
4th 48% Record
Dive deeper into 2019/20
production and trends
Consecutive year of fiber Estimated growth in fiber 2019/20 saw the largest TOP FIVE BY
TOP FIVE BY
46+18+16758F
volume growth production 2020/21 globaltoharvest
Jump to date
page 27–29 IN-CONVERSION LAND AREA
FIBER VOLUME INCREASE
India: 22,936 ha
Tanzania: h6,004 tonnes
Turkey: 9,014 ha
Kyrgyzstan: h5,778 tonnes
FIVE YEAR REGIONAL TRENDS FIVE YEAR GLOBAL TREND Tajikistan: 8,595 ha
Uganda: h2,153 tonnes 50,552 ha
Tanzania: 3,416 ha
130,000
U.S.: h1,748 tonnes China: 2,643ha
120,000 249,153
239,787
110,000 Pakistan: h1,628 tonnes Other: 3,948 ha
Organic cotton fiber production (tonnes)
100,000
90,000
182,482
80,000
TOP FIVE BY GROWTH IN CERTIFIED FACILITIES
70,000
60,000
FIBER GROWTH RATE
118,032
h 40%
50,000
106,542
40,000 Pakistan: h409%
30,000
Tanzania: h114% in OCS certified facilities1
20,000
10,000 Uganda: h83%
0 Greece: h47% h 34%
2015-16
2016-17
2017-18
2018-19
2019-20
2015-16 2016-17 2017-18 2018-19 2019-20
Brazil: h38% in GOTS certified facilities
Sub-Saharan Africa Eastern Asia EMENA, Central & Western Asia
Global organic cotton fiber
Latin America & the Caribbean Southern & Southeastern Asia Northern America 1
OCS certified facilities figures for 2020 are estimates due to a delay in receipt of some data.
production (tonnes)
Back to Contents • 5
Meet this year's industry insiders Marco Paul
CO-CEO-Production and
Vivek Rawal
CEO and Managing Director,
Administration,
bioRe India Ltd
bioRe® Tanzania Ltd.
Read full interview
Read full interview
During the making of this report, we about the latest news from each project and
interviewed twenty-one stakeholders for their thoughts on the trends playing out
from across the global supply network to in the organic cotton sector. Orlando Rivera Jessica Shade
bring you unique insights into their work in General Manager, Director of Science Programs,
Quotes from the interviews are shared Bergman/Rivera The Organic Center
organic cotton.
throughout this report but you can read the Read full interview Read full interview
In line with Textile Exchange’s 2030 full interviews with these and other industry
Climate+ strategy, this year's interviews insiders in our Insider Series and Member
focused on climate, water, biodiversity, and Spotlight. Ruud Shute Amitabh Singh
soil health. We also asked interviewees Program Director, Founding Member,
Organic Cotton Accelerator Farmer Association for Rural
(OCA) Management
Marco Bänninger Rajan Bhopal
Head Trader Hand Picked International Project Manager
Read full interview Read full interview
Cotton, (Supply Chains),
Paul Reinhart AG Pesticide Action Network
(PAN) UK Roland Stelzer
Read full interview Mariam Soliman
Read full interview Managing Partner,
Communication Specialist,
Cotonea/Gebr. Elmer &
Economy of Love
Zweifel
Hardeep Desai Syeda Faiza Jamil
Read full interview
Head of Farm Operations, Corporate Responsibility & Read full interview
CottonConnect South Asia Communications GM,
Private Ltd. Artistic Milliners
Read full interview Read full interview Aydin Unsal Kayla Van Zielst
Owner, Chairman of the Social Media Manager,
board, Texas Organic Cotton
Subindu Garkhel Egedeniz Tekstil Marketing Cooperative
Varun Joseph
Senior Cotton and Read full interview Read full interview
Programme Officer – Materials,
Textiles Lead,
Laudes Foundation
Fairtrade
Ligia Zottin
Read full interview
Read full interview Impact & Compliance Lojas Renner
Manager, Company submission
VEJA
Tobias Meier Read full interview
Vitoon Panyakul Read full interview
Senior Project Leader
Director,
Sustainable Textiles,
Green Net
ecos / CCBE
Sanko Textile
Read full interview
Read full interview Company submission
Read full interview
Back to Contents • 6
Current
trends and
priorities
Photo: © Sanko Textile | Turkey
Back to Contents • 7
Keeping up with demand
Why has there been a sudden shortage of organic cotton? We are going to see demand During the past year, we have
increasing at a faster pace and seen a surge in organic cotton
From small t-shirt manufacturing operations Besides heightened demand, there have also
the supply side will have to find demand. Much of this demand is
to the major fashion houses of Milan and been supply-side factors impacting availability,
solutions to cope. We already see from "new companies" that are
Paris, brands and retailers are increasingly including:
incorporating organic cotton into their supply second year in-conversion cotton just transitioning to the sustainable
chains, leading to a dramatic increase in • Sanctions from some countries, including in high demand, and perhaps materials world. Unfortunately,
demand that hit new heights in 2020. the U.S., on imports of cotton from we may even see first year in- what has happened is that these
China has resulted in companies that conversion cotton used in textile brands expect organic cotton to
With more and more companies were sourcing from China turning to
production, which is a great way of always be available, as if it was a
recognizing the far-reaching benefits of other sourcing destinations, increasing
supporting organic farming. commodity, and that has not been
organic cotton, many are now putting it demand from these countries. Read
at the heart of their preferred materials Textile Exchange's social stance for further Aydin Unsal, the case.
portfolios. And, as they realize these benefits, details. Egedeniz Tekstil Orlando Rivera,
companies are setting ambitious targets to • The detection of fraud in India in 2020 Bergman/Rivera
align their sourcing practices with initiatives resulted in the companies involved
such as the Sustainable Development Goals, ► Read full interview
being banned both by GOTS and Textile
the 2025 Sustainable Cotton Challenge, or The
Exchange. The assurance model was ► Read full interview
German Partnership for Sustainable Textiles. critical to detecting the deficiency before
the product was processed further. The
Yet, establishing an organic management
system requires investment and commitment – use of standards and third party verification
and up to three years for farmers to make the drives the adoption of best practices and
conversion. As a result, many brands wishing elevates the value of the finished product
by protecting the intrinsic value of the fiber
to incorporate the fiber into their supply chains
and delivering confidence to consumers.
are finding that there isn’t currently enough to
meet their needs. Read Textile Exchange's statement for
more detail. The demand for organic cotton We are happy to see the hard
The good news is that brands can help to has increased over the past year, work of organic farmers being
increase supply by investing in in-conversion Demand forecasting survey especially for organic cotton from well rewarded by the market but
cotton and sending clear demand signals to Africa, Turkey, and Central Asia [...] are well aware that the market
farmers so that they can make the switch Textile Exchange gathers data on cotton despite the disruptions caused by conditions could rapidly change
feeling confident there will be a market for uptake annually through its Corporate Fiber the pandemic in the supply chain. once more.
it. and Materials Benchmark program. in March
2021, for the first time ever, we conducted an Marco Bänninger, Rajan Bhopal,
additional demand survey for organic cotton Paul Reinhart AG PAN UK
as a ‘temperature check’ and to gather data
on future demand. Keep an eye out for the
► Read full interview ► Read full interview
results - coming soon!
Back to Contents Photo: © Charlotte Lapalus for VEJA | Brazil
• 8
Recommendations for securing supply
Ensure that your cotton is certified from field to finished
product to provide verification to the industry and consumers.
Incorporate organic and in-conversion cotton into your
long-term preferred fiber and materials strategy. Clear demand
signals and fair prices will encourage farmers to plant more organic
cotton. Be sure to order well in advance of planting time.
Source directly and make forward commitments to farmers/
farm groups, or a supplier who works closely with them, to secure
supply and signal your demand. Visit our Organic Cotton Producer
Directory to connect directly with producers.
Consider other sourcing geographies and models to diversify
your supply base. This Organic Cotton Market Report and Textile
Exchange and Kering’s A World Beyond Certification: A best practices
guide for organic cotton trading models provide information on
sourcing regions, pricing, fiber qualities, and more.
Buy in-conversion cotton to support farmers/farm groups
through the conversion phase, secure your supply, and help to build
future supply of organic cotton. Learn more overleaf.
Keep up to date on global production trends via this Organic
Cotton Market Report, published annually.
Join our Organic Cotton Round Table to discuss sourcing and
other issues with the rest of the industry. Join here.
Help Textile Exchange enable the industry to plan for
expansion by participating in our Materials Change Index and
demand forecasting surveys.
Back to Contents Photo (left): © Martin J. Kielmann for CmiA | Tanzania
• 9
In-conversion cotton
The driving force for the future of organic cotton We see interest and demand for We want to strengthen our market
in-conversion cotton increasing as share in organic cotton to meet
While demand for organic cotton is clear, of their organic system means that naturally brands become aware that farmers increased demand. However,
incentives for farmers to transition to organic healthy soils that feed the crops haven’t yet converting to organic are the organic cotton still represents
production are lacking. Buying in-conversion had a chance to fully develop. Organic farming engine to the growth in our sector. a niche market, and we should
cotton and investing in in-conversion is also knowledge-intensive, and farmers need not expect any miracles in terms
programs support farmers and farm groups time and support to adapt. Ruud Shute,
of its short-term capacity and
through the conversion phase, while OCA
Converting to organic production can be a the expansion of arable land
building future supply of organic cotton.
big risk for both individual farmers and farm for organic cotton production.
Here, we answer some common questions groups. Without support or longer-term ► Read full interview
It is important that we strive for
around in-conversion cotton. guarantees of a market, there is little incentive sustainable growth together with
for farmers to enter the conversion period. our partners and support them
What is the conversion period and why But without farmers willing to enter it, brands
does it exist? during these challenging times
won’t have supplies of organic cotton secured CottonConnect’s Organic Farmer
into the future. Farmers need to plan their
when supply chains can easily be
To grow any organic crop, the land must go Training Program supports farmers interrupted.
planting, so it’s essential that we find ways
through a conversion, or transition, period on a four-to-five year transition
to support and encourage them through Marco Bänninger,
first. This is the time between the start of the from conventional cotton growing
the years of change.
organic management and the acceptance to organic cotton practices. The Paul Reinhart AG
of crops as organic. From day one of this How do we support farmers during the years detailed farmer training modules
conversion time, the farmer implements of change? cover all the aspects of organic ► Read full interview
organic production practices.
There are several ways that farmers and cotton cultivation, the certification
The length of the conversion period varies implementing partners can be supported, and process, health and safety of the
between countries but is generally between it’s worth investigating which options work farmers, organic integrity and
two and three years based on the crop and best for your business or brand. ICS (Internal Control System)
audit cycle. Farmers use the time to establish Organic has always been important
documentation. CottonConnect
and embed new organic management Fundamentally, it’s vital that farmers and for Fairtrade and for the last 28
implementing partners receive adequate also works with brands on organic
systems, with a particular focus on building years we have supported farmers
soil health and fertility, which can take time. support and fair prices through the years cotton integrity, strategy, and
during the transition to organic
of change. Providing clear market demand traceability.
During this time, farmers may experience a
farming. [...] The Fairtrade premium
signals that indicate commitment to organic
temporary drop in yields, because they can no
Hardeep Desai, helps farmers overcome the
for the long term, will ensure sustainable
longer use quick-fix synthetic forms of fertility CottonConnect challenges of the transition phase.
and resilient organic cotton supplies can be
like nitrogen fertilizers, while the newness secured well into the future. Subindu Garkhel,
► Read full interview Fairtrade Foundation
► Read full interview
Back to Contents Photo: © Grameena Vikas Kendram Society for Rural
Development (RESET) | India • 10In-conversion cotton Key resources on in-conversion cotton
In-Conversion Cotton webpage
How can in-conversion cotton be How can in-conversion cotton be traced
marketed? through the supply chain? We'll keep our In-Conversion Cotton webpage updated with the latest
news, resources, and events, so save the link and check back often.
One of the easiest ways to support organic Wherever you’re selling products, it’s
systems is by communicating the benefits important that you can trace your use
of organic systems to consumers. When it of organic and in-conversion cotton in In-Conversion Cotton - The Basics (pdf)
comes to marketing organic cotton, that’s your supply chain. This enables you
fairly straightforward - but things get more to be third party verified, transparent,
This pdf overview aimed at brands and retailers outlines what in-
complicated with in-conversion cotton. and to substantiate your claims to your conversion cotton is – including discussion of standards, fair pricing,
customers. and what claims can be made.
In most countries, you can label in-conversion
cotton products as containing ‘organic Textile Exchange’s Organic Content Standard
in-conversion’ cotton. Unfortunately, this (OCS) helps you to do just that. Certification
Brand examples of marketing language
isn’t allowed in the United States, which is to OCS confirms that you have a certain
the leading retail market for organic cotton. percentage of organic cotton and/or in-
The following are links to brands that are successfully incorporating
In the U.S. it’s against the law to use the conversion cotton in a finished product. Please in-conversion cotton into their products, introducing the public to the
word ‘organic’ in relation to in-conversion or note that, at this time, whilst you can trace in- concept of in-conversion cotton and promising them an organic future:
‘transitional’ products on product labels or conversion cotton in your OCS supply chains, ARMEDANGELS, Eileen Fisher, and Patagonia.
hang tags. you may not use the OCS logo in relation to
in-conversion products.
In this case, brands can talk about the journey OCRT e-Learning Series
to organic using other channels, such as on The Global Organic Textile Standard (GOTS),
their websites. Check out the brand examples which addresses both fiber content and In April 2021, Textile Exchange's Organic Cotton Round Table (OCRT)
opposite to see how this can be done. processing, has a labelling category for in- launched an e-Learning Series, with an initial focus on in-conversion
conversion products, with language that can cotton. Part 1 addressed the current shortage of organic cotton
be used in all countries where it is currently
and shared recommendations for companies on how to source in-
legal to do so.
conversion fiber. Part 2 explored the different models for sourcing
organic and in-conversion cotton.
Organic Cotton Round Table (OCRT)
Join the OCRT for information on the different approaches to sourcing
organic and in-conversion products, access to our directory of organic
producers, and the latest news. Find out more about the OCRT in the
"Get Involved" section of this report.
Back to Contents • 11Regenerative
Building resilience through regenerative agriculture
The term “regenerative” is increasingly a In most parts of the world, organic is clearer understanding of the tools, programs, Despite these benefits, programs can be
feature of conversations about sustainable enshrined in legislation, meaning that farmers initiatives, guidance, and best practices within difficult to identify and support due to a
or preferred fiber choices, and you’ll see it must meet strict standards to sell their crop the regenerative agriculture landscape – and to complex network of stakeholders, all with
used frequently in this report - but what does as organic. Whilst there are variations in the offer concrete pathways for brands to deepen different outcomes, practices, accounting
it mean? To get to the heart of the matter, we details, all of these standards ensure that their engagement. Regenerative agriculture methodologies, and claims. Through
need to understand the difference between farmers carry out practices to protect their soil. presents an immense opportunity to brands this research, Textile Exchange hopes
regenerative practices and regenerative Studies have shown that organic farming has a to support practices that sequester carbon, to help organizations efficiently navigate
agriculture. positive effect on carbon capture and storage, protect biodiversity, enhance ecosystem the regenerative agriculture landscape,
biodiversity, animal welfare and general services, improve livelihoods, and lead to long- enabling more rapid scaling of projects and
Regenerative practices usually address a ecosystem health. term climate resilience. achievement of meaningful impact reduction.
single element or set of practices within the
system. Regenerative agriculture is a holistic Being defined in law helps protect the term
philosophy that takes a whole systems "organic" from greenwash. However, legislation
approach. is always a floor, not a ceiling, and farmers We are working hard to connect Building on the learnings from
must be encouraged and supported to go
Regenerative agriculture is not a regenerative farming practices with our existing legacy organic cotton
beyond baseline requirements so that they
prescriptive “one size fits all” approach; our in-conversion strategy to grow programmes, we are looking to
are farming organically by design, not just
instead, it looks at a combination of default. It’s important to support continuous the organic farming community encourage business to look beyond
methods that support resilience as well improvement and strive for best practice. and to reward farmers for the certification and source in ways
as build and nourish our ecosystem. There are many fantastic programs and contributions they make on every that build producer power and
Over time, regenerative practices can projects helping farmers to do just that, some level. Doing this will help the sector enhanced stewardship of natural
increase production and naturally reduce of which are featured in this report. increase the supply of organic resources. In 2020, to enable this
the need for external inputs. When these
cotton and deliver maximum shift, we partnered with IDH and
regenerative practices are implemented Measurement is an important tool to help
successfully, the health of the agricultural guide improvements, but it’s what we do environmental impact. WWF India to establish our first
ecosystem and farmer's economic stability with the results that is key. Organic farmers landscape programme, Regenerative
Ruud Shute,
can be improved. This is regenerative have been at the forefront of agricultural Production Landscape in Madhya
OCA
agriculture, and best-practice organic is a innovation for decades and continue Pradesh, India, and more recently
leading example. to lead the way by demonstrating the joined forces with the 1000
regenerative benefits of organic agriculture. ► Read full interview Landscapes for 1 billion People for
Organic farmers have used regenerative
practices such as crop rotation, green Research the regenerative agriculture global convening to further amplify
manures, and cover cropping for generations, landscape with Textile Exchange the landscape narrative.
as part of their holistic approach to managing
Varun Joseph,
the land without synthetic inputs. This is Textile Exchange is committed to furthering
research on regenerative agriculture. Research Laudes Foundation
because working with the systems and cycles
of nature is a fundamental part of the organic has begun aiming to serve as a guide to the
approach to agriculture. fashion and textile industry by providing a ► Read full interview
Back to Contents • 12COVID-19 PAN Ethiopia worked incredibly hard
to deliver farmer training and support
One year on farmer groups during the COVID-19
pandemic and political unrest. To
COVID-19 continues to have a profound farming families in villages throughout Madhya comply with government restrictions
and devastating impact on organic cotton Pradesh. In India, Bangladesh and Pakistan,
on group meeting size, the field
communities worldwide, particularly those that CottonConnect launched their Mission Hope
team ran weekly training sessions
are financially, socially, or physically vulnerable Campaign, distributing masks, gloves, hand
to its effects. You will find detail of region- sanitizers and PPE kits and raising awareness with smaller groups of farmers,
specific impacts later in this report. of Covid-19 prevention measures. Such efforts repeating these so that all farmers
are critical in the here and now to saving in each of the 14 project villages
Many organizations in the organic cotton countless precious lives. could take part, and they delivered In May 2020 Fairtrade announced
community have stepped up to provide
hand sanitizing and health protection a “Fairtrade Producer Relief Fund”
emergency relief, particularly in India, which But the need to build lasting solutions to
has experienced a catastrophic second support farmers is greater than ever as messages. We succeeded in training and the establishment of a “Fairtrade
wave. This year, the Chetna Coalition has communities plan for both short and long-term 1,430 farmers, 27 percent of whom Producer Resilience Fund” in
announced that they are seeking to cover recovery from the impacts of Covid. This is were women. response to the global COVID-19
the costs of vaccinations against Covid-19 our opportunity to push the reset button pandemic, with initial investments
Rajan Bhopal,
and any prophylactic treatment or provision and - in the words of Textile Exchange CEO
PAN UK of €3.1 million. The Fairtrade relief
of basic medical kits for all Chetna staff and La Rhea Pepper - "create the shift from a
fund was launched for immediate
their immediate family members. The Organic Price to Value Paradigm".
Cotton Accelerator is allocating increased assistance: to keep farmers and
► Read full interview
funds to their Farm Programme Kits, which Fortunately, despite disruptions caused by workers safe and operations running,
will be distributed for the 2021/22 cotton the pandemic, demand for organic cotton while the Fairtrade resilience fund
season. bioRe Foundation set up Mobile increased dramatically during 2020 thanks to was created for long-term measures
Health Units to provide basic health care to strong brand commitment to source preferred
(such as adjusting business models
fiber and materials. After many COVID-19 lockdowns
or diversifying) to achieve a more
around the world, the majority
solid economic recovery.
of people were deprived of their
usual way of life and learned how Subindu Garkhel,
to live with it. They had time to Fairtrade Foundation
value the environment, climate,
and sustainability, and we have ► Read full interview
experienced the growing demand
from the industry for sustainable
products.
Aydin Unsal,
Egedeniz Tekstil
Photo: © Farmer Association for Rural Management (FARM) | India ► Read full interview
Back to Contents • 13Seed innovation
Progress and updates on non-GM seed development
Spotlight on seed: Organic Cotton Accelerator (OCA)
Seed is where cotton textiles begin. Yet, In early 2021, 14 laboratories successfully The production of an organic cotton tee-shirt actually starts by ensuring the
access to non-genetically modified (GM) seed passed the ISO IWA 32:2019 proficiency test,
availability, accessibility and diversity of quality organic cottonseed for farmers.
that is suitable for organic cotton production constituting an important milestone on the
continues to be a key barrier to expanding journey towards transparency and verification Organic farming conditions are not artificially buffered using synthetic inputs so it
supply of organic fiber. Seed is big business, of the presence of GM in cotton. is especially important that organic farmers can access the right quality and type
and the global dominance of GM cotton of seed that suits their local environment and their farming system. Only then can
continues to pose serious challenges. Non-GM seed breeding programs
farmers fully and sustainably harvest the agronomic, environmental and economic
In 2019, ~25.7 million hectares of GM cotton • bioRe India's breeding and evaluation benefits of growing organic cotton.
was grown in 18 countries, accounting for program is now at the doorstep of
producing seeds from five TFL released OCA has already achieved significant milestones in India since 2017 through our
79 percent of total cotton production.1
cultivars. Seed and Innovation Programme. This year, we made our Non-GM Cottonseed
March 2020 saw Kenya commercialize Bt
cotton, becoming the seventh African country Production Guidelines available to all seed producers who want to prevent GMO
• Fairtrade runs non-GM seed projects
to commercialize GM cotton. Neighboring in India, Kyrgyzstan, and Tajikistan. presence in their seed lots. By participating in this global industry approach, seed
Tanzania, on the other hand, suspended GM Fairtrade's partnership with Pratibha producers who follow these guidelines can improve the integrity of the entire
seed trials in January 2021 due to concerns Syntex in India was due to enter Phase organic cotton value chain, from seed to shirt.
over the negative impact on farmers and a Two in 2020 but is on hold due to
preference to conserve local seed varieties. Beyond India, OCA’s Global Seed Strategy aims to boost the development,
COVID-19 pandemic.
commercial release and production of non-GM / organic cultivars for the organic
For an overview of GM cotton in Africa, • FiBL and OCA's “Seeding the Green
cotton sector globally by proactively working on capacity building, developing
the associated risks, and the opportunities Future” program is developing new and
improved cultivars suited to organic
joint market incentives, informing advocacy and ensuring seed knowledge
offered by organic, see the white paper issued
farming conditions, while scaling up testing exchange.
by Textile Exchange’s Pan-Africa Sourcing
Working Group in 2020: Cotton in Africa: and multiplication. More on OCA's seed
Long-term partnerships are key to the success of the sector’s seed journey
Sustainability at a Crossroads. and innovation work opposite.
which is why OCA is encouraging existing seed initiatives to share their stories,
• Texas A&M AgriLife Research planted learnings and challenges. Knowledge sharing of this nature will help create a joint
Testing for GM cotton ten candidate varieties in demonstration
blueprint of best practices, that we can further populate as we grow our network
The global ISO IWA 32:2019 proficiency plots at the AgCARES farm in Lamesa,
in the coming years.’
test was the result of a collaboration between Texas, in early 2021. Read more here.
GOTS, OCA, and Textile Exchange to create If you would like to contribute to the seed journey and share your local seed story,
a common language among laboratories please email Mathilde Tournebize at seeds@organiccottonaccelerator.org .
worldwide to screen for the potential presence
Mathilde Tournebize,
of GM cotton along the organic cotton value
Programme Officer Seed and Innovation,
chain.
Organic Cotton Accelerator
► Read OCA's Insider Series
1 ISAAA. 2019. Global Status of Commercialized Biotech/GM Crops in 2019. ISAAA Brief No. 55.
Back to Contents Photo: Courtesy of Laudes Foundation | Brazil
• 14Traceability & transparency
Organic cotton has taken its place
on the sustainability agenda of
most retailers and brands, with the Economy of Love is a newly
While transparency and traceability cannot Introducing Textile Exchange dTrackit established initiative that aims
be a complete substitute for trust, they do
demand that it can be fully traced
to bring together responsible
help to build trust and support pro-active dTrackit is the upcoming technical platform back to the origin.
consumers and producers in a
and preventative measures when it comes to for Textile Exchange’s suite of standards. It will
Marco Bänninger, community that works towards
ensuring integrity within supply networks. integrate scope and transaction certificates of
the more than 30,000 sites currently certified Paul Reinhart AG a more sustainable and ethical
A growing number of companies are eager within the scope of the Textile Exchange economy. We certify products that
to improve the traceability of their organic standards. It has been developed to achieve are sustainable and ethical along
► Read full interview
cotton supply networks, and consumers full supply chain traceability with minimal their supply chains and bring full
are starting to demand more traceability disruption to the existing certification process transparency over their production
and transparency too. and involves centralizing, reconciling, and and impact.
connecting scope and transaction data
Technology has changed the way we Mariam Soliman,
currently stored across each of our 20+ We plan to add an extra layer
access information with advances in digital Economy of Love
authorized certification bodies. of traceability via blockchain
infrastructure opening up new ways to trace
technology. We have partnered
organic cotton right back to the farm where it The objectives of dTrackit are:
with a German company called ► Read full interview
was grown.
1. Centralize scope and transaction Retraced to develop these
Textile Exchange Standards certification data to create a single source solutions for us.
of truth.
Transparency can only be achieved with Syeda Faiza Jamil,
a strong third-party chain of custody. 2. Connect transaction certification data to Artistic Milliners
Textile Exchange's Content Claim Standard establish full supply chain traceability.
Cotonea is developing a
(CCS) is the foundation of all Textile Exchange Blockchain solution together with
standards and offers chain of custody 3. Prevent duplication by providing a ► Read full interview IBM and Kaya-Kato to provide full
certification for cotton and other materials. single source for verification and volume transparency to customers. Textile
A number of organizations are using these reconciliation.
Trust will be developed as an
standards for chain of custody models such industry platform.
4. Provide accurate, up-to-date, and more
as identity preserved, segregation, control
easily searchable public data on certified We are also working on digital Roland Stelzer,
blended, mass balance, and book and claim.
organizations and their product offerings. infrastructure to provide our Cotonea/Gebr.
To accompany this strong chain of custody customers with efficient databases Elmer & Zweifel
5. Improve Textile Exchange’s ability to
certification, Textile Exchange is now to improve the traceability of
monitor, evaluate, and continuously
introducing the new "Trackit" system.
improve the impact of our standards. cotton.
► Read full interview
Sanko Textile
► Read full interview
Back to Contents Photo: © VEJA | Harvested organic cotton | Brazil
• 15The price vs. value paradigm
Untangling organic cotton prices and investment costs
With the current mismatch between supply Incorporating values into the price paradigm Done well, the best business model constructs For more on this topic, read The ‘Price’
and demand, the prices paid for organic ensures that we build a business model incentives that encourage honest, ethical, versus ‘Value’ Paradigm: Reframing Cost as
cotton at all stages of the supply chain that aligns with our sustainability goals, fairly accountable behavior across the supply Investment paper released by Textile Exchange
have been increasing. Whether this lasts will rewards investment of time and resources, and network. It also addresses the business risk in 2019.
depend on many factors, including the level adequately remunerates effort and risk. For this of resources running out without effective
of investment in capacity building, choice of to become a reality, transformative change is stewardship. Insufficient investment in
sourcing models, depth of relationships, and needed. We need to support the promotion renewable resources – both environmental and
commitments between supply chain actors. and design of products that are made to societal – will undermine long-term business
last, and to build models and systems that models and prove costly to businesses and
The difficulty of ensuring a fair price for make it easy to grow and make fibers and wider society if not planned effectively.
all is a major barrier to scaling up organic materials sustainably, as well as recycling
cotton and other preferred fibers and or re-using whenever possible.
materials. While brands and retailers need to
make a profit, their pricing decisions directly Five responsible and fair pricing practices
affect the livelihood and working conditions of
the most vulnerable stakeholders – the millions 1. Invest at all levels of the supply network
of people in rural communities and along the to ensure sustainability efforts can be
organic cotton supply chain. delivered with sufficient premiums for living
wages and fair profits.
The price vs value paradigm is also a key topic
2. Invest in a new textile economy based
in the wider organic sector, beyond cotton.
on circular economy principles that lead
The Sustainable Organic Agriculture Action
to better economic, environmental, and
Network has produced guidelines for full cost
societal outcomes.
accounting to transform agriculture and food
systems. 3. Adopt Science Based Targets (or Natural
Capital Accounting) to show the real value
What makes pricing practices responsible of sustainability efforts.
and fair?
4. Invest in Impact Credits that provide a
The textile sector has often promoted a holistic return on investment at the farm-
fast-fashion model that seeks to reduce gate.
cost or price and neglects environmental or
5. Increase consumer engagement and
social considerations. However, in the end,
support by explaining the costs and
the impacts of conventional products cost
benefits of sustainable fibers and create a
society and future generations much more.
market-driven solution that fairly rewards
By accounting for social and environmental
risks and effort.
factors - not just financial - we start to see the
value of investment, not just the price of the
Photo: © Martin J. Kielmann for CmiA | Tanzania
fiber or material.
Back to Contents • 162019/20 pricing snapshot
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
Benin M
Burkina Faso M L
Please note that the charts on this page reflect data being available. In 2019/20, according Ethiopia L
2019/20 harvest year prices and are estimated to our information, organic cotton fiber prices
figures only, based on conversations with local ranged from US$/kg 0.86-3.59 (average of Mali M
experts. As noted on the previous page, there 2.10) compared to the Cotlook A Index that Senegal M
is a wide range of factors that affect cotton ranged from 1.61- 2.19 (average of 1.85) over
prices and organic differentials. Where there the same time period.2 Tanzania M
are gaps in the charts, this is due to no reliable Uganda M
Brazil M
Organic Seed Cotton Organic Cotton Lint
Peru L EL
Common Price Avg. Range Price Avg. Range
Country U.S. S
fiber types US$/kg US$/kg US$/kg US$/kg M L EL
Benin M 0.55 - - - China M L
Burkina Faso M 0.6 - - - Egypt M L EL
Ethiopia L 0.46 - 1.6 -
Sub- Greece3 M
Saharan Mali M 0.6 - - -
Africa Kyrgyzstan M
Senegal M 0.6 - - -
Tajikistan M
Tanzania M 0.39 0.35 – 0.43 1.68 -
Uganda M 0.5 0.4 - 0.6 - - Turkey M L
Latin Brazil M 0.67 0.44 – 0.91 2.32 1.91 – 2.64 Uzbekistan M
America Peru L–ELS - - 2.73 1.95 – 3.50
India S M L EL
N. America U.S. S–ELS - - 2.06 0.86 – 3.25
Pakistan M
E. Asia China M–L 2.50 2.43 – 2.574 - -
Thailand S
Egypt1 M–ELS 0.901 0.78 – 1.01 3.341 3.07 – 3.591
Greece3 M - - - - Myanmar3
EMENA Kyrgyzstan M - - 1.9 -
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
Fiber Length:
& Central
Asia Tajikistan M - - 1.78 - S Short US$ per kg
Turkey M–L 0.59 0.54 – 0.63 1.64 1.55 – 1.72 M Medium
L Long Organic Seed Cotton Price (2019/20): Range (Max/Min) Average Price
Uzbekistan M 0.56 0.52 – 0.60 2.15 1.45 – 2.75
EL Extra Long Organic Lint Cotton Price (2019/20): Range (Max/Min) Average Price
India S–ELS 0.78 0.60 – 0.93 2.35 1.70 – 3.00
South & Pakistan M 0.83 0.80 – 0.85 1.81 1.71 – 1.91
Southeast 1 Prices listed for Egypt do not factor in the price of the 3 No organic cotton pricing information was available for
Asia Thailand S 1.00 0.97 – 1.02 - - specialist 'Giza 45' variety, which was 3.53 USD/kg for seed Greece or Myanmar.
cotton and 18.04 USD/kg for fiber. 4 Please see Q&A with Jun Zhao for an explanation of China's
Myanmar3 - - - - - 2 Based on correspondence with Cotlook. organic cotton price.
Back to Contents • 17Social context
Be part of the solution
Textile Exchange strives to bring the industry together to invest in a future
The context within which Textile Exchange Textile Exchange does not condone forced
that supports production methods that protect both the planet and all its
operates or child labor. While human rights and social
issues are not within Textile Exchange’s people. We encourage companies to be part of the solution to systemic
Textile Exchange collects organic cotton scope of expertise, respect for people is problems by:
production data and reports it as an industry the foundation to creating an industry built
resource. As “organic” is a legally controlled on integrity. Textile Exchange is currently Reviewing and publishing your own human rights policies
term around the world, we use the criteria identifying collaborations to complement
set by the respective governing authority
including sections on legal compliance and grievance mechanisms for
existing work on social risks and issues.
to establish whether it is certified “organic”, anyone caught in suspected human rights violations.
regardless of other sustainability issues Visit our website to find more about what
involved. Textile Exchange is doing to stop human rights Implementing sanctions and maintaining lists for known
violations in the industry.
In this way, Textile Exchange is agnostic in companies breaching human rights.
its volume reporting. We include the data What can you do?
received from every producing country to Making long-term investments and prioritizing supply chain
create a complete picture of global supply. Regardless of the region or the industry,
companies can be part of the solution by transparency.
Textile Exchange does not perform certification
work itself, nor provide on-the-ground program taking the measures listed opposite.
work regarding the production of organic Adhering to globally recognized, credible, third-party social
More companies are starting to take such
cotton or any other fiber in any country, nor standards that prohibit the use of forced or child labor, and take
steps and, as a result, we are seeing a number
make recommendations for preferred sourcing immediate action to identify, prevent or mitigate, and account for how
of positive trends in the industry. Traceability
locations.
is becoming more critical as companies work actual and potential adverse impacts are addressed. This may include
Human rights to improve due diligence, leading them to sourcing elsewhere when expectations are not met.
reassess their sourcing options, while proof of
Textile Exchange works to accelerate impact and storytelling are also becoming top
Using economic power and collective action to push for policy
environmentally sustainable practices in priorities.
the textile value chain. This goes hand-in-
changes that support human rights.
hand with social responsibility to ensure
that the rights of all people, particularly Seeking advice from organizations with expertise on social
workers, are respected. and/or labor issues, such as the Fair Labor Association (FLA) and
Textile Exchange is deeply concerned by the Organisation for Economic Co-operation and Development (OECD),
disturbing reports of forced labor, as well as to make the most environmentally sound and socially just sourcing
reports of forced and child labor in many parts decisions.
of the world that have occurred over the past
several years.
Back to Contents • 18Impact
Photo: © bioRe® India | Drip irrigation | India
Back to Contents • 19Climate
Organic farming as a tool for climate change mitigation
The earth systems of water, soil,
According to the United Nation’s New study on climate risks to cotton biodiversity and climate are all
Intergovernmental Panel on Climate Change interconnected. With a holistic
In June 2021, Cotton 2040 released the first- Farmer feedback suggests that
(IPCC), CO2 emissions must fall 45 percent approach, we can tackle more than
ever global analysis of climate risks to cotton organic systems are more resilient
from 2010 levels by 2030, reaching net zero one issue.
by 2050, to prevent 1.5°C of global warming production. The study reveals that by 2040, to adverse weather events and we
and the associated risks to human health, half of the world’s cotton growing regions Syeda Faiza Jamil, would like to quantify this through
livelihoods, food security, human security, water could face drastic changes to temperatures Artistic Milliners formal research.
supply and economic growth.1 and water availability, and exposure to extreme
weather events, if carbon emissions continue Rajan Bhopal,
This year, nations across the world will present to soar. It highlights that even with ambitious ► Read full interview PAN UK
their updated national plans for achieving net decarbonization efforts, climate adaptation will
zero emissions by 2050 at the 2021 United be essential.
► Read full interview
Nations Climate Change Conference (COP
26). One of the main objectives of COP 26 is Textile Exchange's Climate+ strategy
to “urgently adapt to protect communities and
Under our 2030 Strategy, Climate+, Textile We can see the enormous potential
natural habitats”. The holistic contribution of
Exchange will be a driving force for urgent
organic agriculture will be key to ensuring this of the sector to reduce greenhouse
climate action, with a goal to reduce CO2
objective is met. gases and sequester large Weather is always our greatest
emissions from textile fiber and material
production 45 percent by 2030. The “+” volumes of carbon in our soil. With challenge. We have summer's
How does organic protect the climate?
allows Textile Exchange to prioritize climate many initiatives kicking in around heat, winter's cold, and every
Organic farming is recognized as a vital tool while addressing other impact areas that are the globe, we need to ensure element in between - tornadoes,
in climate change mitigation. The IPCC's interconnected with climate such as water, that the collective contribution of dirt storms, hail, strong winds,
special report on Climate and Land states biodiversity, and soil health. The “+” is also an smallholder farmers in all regions drought, and cold fronts.
that sustainable land management – such acknowledgment that Textile Exchange cannot is rewarded in proportion to their
as implementation of organic agriculture achieve this goal on its own. Kayla van Zielst,
efforts.
practices – can build soil carbon and lower TOCMC
GHG emissions, among other benefits. Science-based climate change targets Ruud Shute,
In June 2019, WRI published guidance for OCA ► Read full interview
Organic farming also saves energy by avoiding
the use (and manufacturing) of synthetic apparel and footwear companies to set
inputs.2 Organic practices can reduce energy science-based climate change targets. To get ► Read full interview
consumption by up to 30-70 percent per unit a better idea of the sector's carbon footprint,
of land.3 fiber volume data from Textile Exchange was
combined with impact data from the Higg
Materials Sustainability Index. Initial calculations
1 IPCC, 2018 - Special Report: Global Warming of 1.5°C
Summary for Policymakers. Link. indicate that raw material extraction accounts
2 Seufert & Ramankutt, 2017 - Many shades of gray - The for 23 percent of total apparel and footwear
context-dependent performance of organic agriculture. Link.
3 IFOAM-Organics International, 2020 - Organic Agriculture GHG emissions. Cotton, which accounts for 24
Countering Climate Change. Link.
percent of total fiber by volume, is estimated
to be responsible for 14 percent of these
Back to Contents emissions. Photo: © Kayla van Zielst for TOCMC | Storm clouds over
Texas organic cotton | U.S. • 20Soil health
Soil is the basic component of
Regenerating soil and reducing erosion living organisms on the earth. Soil
needs to be cared for and kept
Mainstream agriculture is accelerating loss of manure, composting, reduced tillage, and Texas Organic Cotton Marketing
safe to make it sustainable for the
topsoil at an alarming rate. About a third of the recycling of crop residue, can help Cooperative growers utilize cover
future living organisms. Different
the world's soil is already degraded1 and it increase the amount of organic matter – crops to aid in preventing water
activities nowadays have been the
is estimated that the rate of soil erosion on including carbon – in the soil. As a result, runoff and soil erosion as well as
source of soil destruction making
arable or intensively grazed lands is 100- soil structure is improved and soil erosion to create a healthy environment
1,000 times higher than the natural erosion is reduced, making nutrients more easily it unsuitable for living organisms.
for the microbes in the soil. [...]
rate.2 Generating two to three centimeters of available to the crops while also increasing the [...] To combat this effect, farmers
Carbon is captured and stored in
topsoil takes 1,000 years.3 We must protect abundance of soil fauna.4 in our area, especially organic
the soil by plant and microbial life.
our soil. farmers, have been trained in
These regenerative practices build on This will create an environment
different practices in order to grow
How does organic cotton protect soil? indigenous knowledge developed by local that is conducive for the upcoming
and maintain good soil health.
farming communities throughout centuries.5 growing season.
While exact metrics vary across studies Indigenous knowledge and holistic land Marco Paul,
and are naturally very context-dependent, management practices are vital to organic Kayla van Zielst,
bioRe Tanzania
the positive association between organic farming systems and will play a key role in TOCMC
agriculture and soil health is unquestionable. agroecosystem regeneration and climate
Farming practices used in organic change mitigation and adaptation. ► Read full interview
agriculture, such as crop rotation, green ► Read full interview
1 FAO and ITPS, 2015 - Status of the World’s Soil Resources. Link.
2 FAO, 2019 - Key figures on soil erosion. Link.
3 Ibid. Healthy soils are crucial in a region
4 Seufert & Ramankutt, 2017 - Many shades of gray - The context-dependent performance of organic agriculture. Link.
5 Altieri, 2004 - Linking ecologists and traditional farmers in the search for sustainable agriculture. Link. fighting against desertification. [In Benin] OBEPAB’s promotion
West-Africa, thus, is a place of nitrogen-fixing soybean in the
perfectly suited for organic rotation helps increase soil fertility
farming, due to its small farmers, and yields in subsequent crops.
extensive agriculture and On average, organic farmers
importance of improving soil use three soil conservation
health. methods, compared to only one by
Tobias Meier, conventional farmers, and grow 15
ecos different crops.
Rajan Bhopal,
► Read full interview PAN UK
► Read full interview
Photo (left): © CottonConnect | Farmer using vermicompost
prepared and purchased at a CottonConnect input production
center (IPC) | India
Back to Contents • 21You can also read
