Simon Ferrigno

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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

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

However, many sustainable options are now

Cotton's use of pesticides has declined, however, serious challenges remain including:

Water use, land use, soil fertility, use of chemicals, energy/GHGs, etc.

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

Introducing Better Cotton

September 15 2010

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

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

www.bettercotton.org

Goals

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 www.bettercotton.org

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 www.bettercotton.org

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 www.bettercotton.org

However...

Sustainability is not just about which system, but also how you implement the system...

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

The farm is the core and foundation of the cotton value chain

Farm/Farmers

Natural resources: land, soil, water, energy

Primary

Marketing & support

Value Chain

Marketing &

Retail

Consumers

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

An example of a sustainable fibre value chain and support services

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

On the farm

water energy

Chemicals

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

Seeds

Sun

Fertiliser

Inputs to the farm system: water – labour – seed – finance – inputs – training – land – soil

– biodiversity -

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

Outputs from the farm system: fibre – food

– water – pollution – money – soil degradation – loss of resources – social change/issues -

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

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

Good systems

Resilient (food, education, health, ecosystem, water...

Supported (training, investment, fair returns, fair wages and practices...)

Productive

(good varieties, good soils, etc.)

Innovative

(research and development)

Long-term (contracts, relationships, partnerships)

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

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)?

Or a combination of all options?

Partnership with a movement (Fairtrade)

Wide change across sourcing chain (BCI)

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

What system for me?

Verifiable

Traceable

BCI addresses the wider product mix and addresses the awkward question: and what about the rest of your cotton?

Calculated: impacts, positives versus negatives

Think of products and where there is room for manoeuvre in margins

Adapted to business size: an

SME, niche or high end brand might be able to do 100% of organic and/or FT

Organic or FT good consumer facing options or even loss leaders, while...

A larger business might need a mixture

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

Texworld, Paris - www.sustainableorganicfarmsystems.co.uk - 15-09-2010

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