The importance of a sustainable farm system to a successful fashion industry

1. The importance of a sustainable farm system to a successful fashion industry Simon Ferrigno Consultant Sustainable & Organic Farm Systems Texworld forum In search of organic and other sustainable textiles September 15 2010 Simon Ferrigno - sustainable & organic farm systems

2. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Cotton: zero to...? Cotton remains one of the most important fibres in the world: 35% of textiles market and global production in 2010/11 of 25.3 million tonnes It is the most important natural fibre (2/3 of total) Cotton's use of pesticides has declined, however, serious challenges remain including: Water use, land use, soil fertility, use of chemicals, energy/GHGs, etc. However, many sustainable options are now available

3. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Introducing Better Cotton September 15 2010

4. BCI is a multi-stakeholder initiative - from producer to retailer – to reduce the damaging environmental and social consequences of cotton production.

5. To demonstrate the inherent benefits of Better Cotton production, particularly the financial profitability for farmers • To reduce the impact of water and pesticide use on human and environmental health • To improve soil health and biodiversity • To promote Decent Work for farming communities and cotton farm workers • To facilitate global knowledge exchange on more sustainable cotton production • To increase the traceability along the cotton supply chain Goals

6. Target: 300,000 tonnes by 2012 (1.3% global cotton) • BCI members already account for 4% of global cotton production 2010: • India: 30,000 farmers, 37,000 hectares • Pakistan: 50,000 farmers, 164,00 farmers • Brazil: 150 farmers, 27,000 hectares • West Africa: 5,000 farmers, 13,200 hectares

7. BCI, organic and Fairtrade BCI complements, rather than competes with, existing initiatives such as Fairtrade and organic cotton. All three are working to increase the amount of environmentally and socially sustainable cotton. BCI is focused on the long-term transformation of the mass market, making smaller improvements on a larger scale BCI will not use a labelling scheme and there will be no fixed premium for Better Cotton. BCI is actively working towards aligned activities with Fairtrade and organic

8. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 However... Sustainability is not just about which system, but also how you implement the system...

9. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 The farm is the core and foundation of the cotton value chain Farm/Farmers Primary Marketing & support Value Chain Marketing & Retail Consumers Natural resources: land, soil, water, energy

10. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 An example of a sustainable fibre value chain and support services

11. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 On the farm water Seeds energy Sun Chemicals Fertiliser

12. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Extractive systems - deplete soils through poor management - increase poverty through poor productivity, low prices, high costs, labour exploitation - pollute land, air and water through improper chemical use Constructive systems - train people - study and balance agronomy, productivity, people and planet - reduce water use - build soil fertility - invest in research, development e.g., improved varieties Inputs to the farm system: water – labour – seed – finance – inputs – training – land – soil – biodiversity - Outputs from the farm system: fibre – food – water – pollution – money – soil degradation – loss of resources – social change/issues -

13. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Good systems Resilient(food, education, health, ecosystem, water... Innovative(research and development) Productive (good varieties, good soils, etc.) Supported(training, investment, fair returns, fair wages and practices...) Long-term(contracts, relationships, partnerships)

14. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Costs and benefits for brands Costs Certification Traceability Premium or fair prices More expensive if potentially higher quality raw material Poor economies of scale (at beginning) CSR costs Monitoring Management Farmer support/investment Benefits Shorter value chain Better quality management Traceable product Positive stories from farming = communication Fewer intermediaries (=fewer commissions) More productivity More efficiency Lower footprints including costs of water and energy Closer management

15. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 What system for me? Ask the right question for you business, e.g., A strong consumer message (organic, Fairtrade)? Partnership with a movement (Fairtrade) Wide change across sourcing chain (BCI) Or a combination of all options?

16. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 What system for me? Verifiable Traceable Calculated: impacts, positives versus negatives Think of products and where there is room for manoeuvre in margins Organic or FT good consumer facing options or even loss leaders, while... BCI addresses the wider product mix and addresses the awkward question: and what about the rest of your cotton? Adapted to business size: an SME, niche or high end brand might be able to do 100% of organic and/or FT A larger business might need a mixture

17. Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010 Conclusion Get help and collaborate: NGOs Trade Bodies Experts Existing programmes … Thank you. Simon Ferrigno +44 1843 845 919 +44 7940 462 311 Skype: simon_ferrigno simon@sustainableorganicfarmsystems.co.uk simon@sustainableorganicfarmsystems.co.uk