Confidence despite 21% drop in organic cotton production
04/08/2014
However, despite the decline, its managing director, La Rhea Pepper, said the organisation is proud of the industry. “This year it took over 3 million pounds for a brand to make the top 10 list, last year that number was 2,” she said.
“The Organic Cotton Round Table and the Organic Cotton Accelerator initiatives are hard at work at finding solutions to remove barriers to stable growth. These include working to provide access to non-GMO seed and other resources, clearer communications through the value chain, encouraging communications to consumers, and certifying value chains in order to improve and protect integrity.”
The top five users in 2013 were H&M, C&A, Puma, Nike and Decathalon – broadly similar to the past few years, although Decathlon is a new entry to the top 10.
Both conventional and organic cotton production decreased in 2013. Overall, natural fibre production fell 3% and cotton 4.1% compared with the previous year.
“The balance between declining production and increasing demand will have ramifications as we move into the coming years. Any fibre from years with high production will be absorbed and new demand could be an issue,” said the TE.
“The solution to the supply/demand balance lies in having the business models that provide key market linkage. We spoke to several brands that have robust organic cotton programmes, are projecting future growth and have confidence their supply chain can deliver.”
China’s organic cotton fibre production grew 27%. Strong growth, combined with a drop in Turkish production, saw China achieve number two position in terms of volumes for the first time (India is number one). Chinese manufacturers are signalling to their growers that organic cotton is sought after, says the TE. Demand is coming from both global clients and, increasingly, the domestic market.
Tajikistan is focused on expansion. Volumes grown by over 200% and Bio-Kishovarz farmers are experimenting with a luxurious high-end extra long staple fiber (over 40 mm staple length), diversifying their product offering.
Investment in African countries (including Ethiopia, Kenya, Madagascar, Mozambique, and Zambia) by Organimark, Helvetas, PAN UK and others, is beginning to take off. While still in its infancy, this investment, alongside advances in manufacturing, should result in exciting new market opportunities for Africa, it adds.
Share this story:
