Organic Cotton- Biggest markets are Europe and the United States
06 Feb 2012 - Global - FREE REPORTS
Cotton is the most widely used natural-fibre in clothing and textile industry. It accounts for almost 50% of the textile market worldwide. It is used for various textile products, such as bath towels and robes, denim, shirts, socks, underwear,T-shirts, bed-sheets, etc. The farming of conventional cotton as it is currently grown, is making a serious environmental impact. Globally, conventional cotton uses 25% of all insecticides and 10% of all pesticides although cotton is only grown on 2% of the world s agricultural land. It is now estimated that less than 10% of these chemicals are accomplishing their task and purpose, while the rest is absorbed into the plant, air, soil, water, and eventually into our bodies. Research shows that 1/3 of a pound of chemicals are used in the production of one cotton T-shirt. Therefore, if you multiply the number of cotton t-shirts at your home by that 1/3 of a pound and you can see what a huge amount of chemicals are released into the environment.
Organic agriculture protects the health of people and the planet by reducing the overall exposure to toxic chemicals from synthetic pesticides that can end up in the ground, air, water and food supply, and that are associated with health consequences, from asthma to cancer. Because organic agriculture doesn t use toxic and persistent pesticides, choosing organic products is an easy way to help protect the environment.
According to a the Fifth Annual Organic Farm and Fibre Report by Textile Exchange, the amount of organic cotton grown around the world increased 15% in 2009-10, the result of continued strong commitments to use of the fibre by leading brands large and small despite the recession.
India maintained its position as the leading organic cotton producing nation for the third year in a row, increasing its production of the fibre 37%. The other leading organic cotton producers include Syria and Turkey while Pakistan remains in the 8th position. Organic cotton was grown by approximately 274,000 farmers in 23 countries in 2009-2010. It now makes up more than 1% of global cotton production.
Organic production is based on a system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers or genetically-modified seeds. Production of organic cotton increased from 25,394 tonnes in 2003-04 to 241,276 tonnes (over 1.1 million bales) grown on 461,000 hectares (186,560 acres) in 2009-2010. Organic cotton now represents 1.1% of global cotton production. Increasing awareness among the consumer and companies, especially in the developed economies, regarding environmental and social issues, has helped in sustaining the growth in organic cotton production. However, improved data collection coupled with identification of previously existing unknown projects and inclusion of their production could also be responsible in part for the surge in organic cotton production.
With the addition of Tajikistan, organic cotton was grown by approximately 274,000 farmers in 23 countries in 2009-2010 against 22 countries in 2008-09. India was top producer for 2009-10, growing over 80% of the organic cotton produced globally and increasing its production of the fibre by 37% over 2009-2010.
Syria moves from third into second place, and Turkey fell from second to third place. The remaining countries in descending order are China, United States, Tanzania, Uganda, Peru, Egypt, Mali, Pakistan, Burkina Faso, Israel, Benin, Paraguay, Greece, Tajikistan, Senegal, Nicaragua, South Africa, Brazil, and Zambia. Global production of organic cotton is given in Table-1.
Table 1: Global Production of Organic Cotton
Year
Production (Tons)
2003-04
25,394
2004-05
31,017
2005-06
40,322
2006-07
57,932
2007-08
145,872
2008-09
209,950
2009-10
241,276
Source: Various issues of Organic Cotton Market Reports.
The demand for organic cotton has also been growing over the past few years. As increasing number of people are becoming aware of the environmental and sustainability issues the demand for such products has been increasing accordingly. Products made from organically grown cotton fibre are achieving greater penetration in few developed markets such as the UK, Germany, Switzerland, Japan, and the United States. The biggest markets for organic cotton are in Europe and the United States where big retailers have shown interest to expand their existing organic cotton initiatives.
According to the statistics released by Economy Watch, the global textiles market is valued at more than $400 billion. Ever since the textile industry has become truly global, it has also seen some fierce competition. In fact, in the last eight years, production has grown by 25% and the Asian region has become the highest contributor of textiles in the world.
The demand for products of organic cotton is gaining ground many companies are entering in the production and sale of products made from organic cotton. Some companies are also entering this space as a part of their corporate social responsibility. The 10 brands and retailers with organic cotton programs are: Wal‐Mart (USA), C&A (BE), Nike (USA), H&M (UK), Zara (ES), Anvil (USA), Coop Switzerland (CH), Pottery Barn (USA), Greensource (USA), and Hess Natur (DE). Together these 10 companies account for 70% of the fibre consumed by the retail segment.
The demand and supply of organic cotton fibre products has grown dramatically in recent years, indicating strong interest from both global retail markets and farmers in growing cotton organically. While the development of new certification standards, information tools and business models by nongovernmental organizations such as Organic Exchange, Organic Trade Association, Helvetas, Soil Association, Oxfam, etc. has helped suppliers develop and implement organic cotton programmes, consumers’ increasing awareness about the environmental implications of cotton production has fuelled consumer demand for this product category.
Despite the global recession, sale of organic cotton products increased from $4 billion in 2009 to $5.3 billion in 2010, thus showing an increase of 32%. In 2011 and 2012, the increase is reported as 24% and 33% respectively, to result in an estimated $6.0 billion market in 2011 and a $7.3 billion market in 2012. Most brands and retailers selling organic cotton products remain committed to their sustainability plans and upbeat about market growth, with plans to expand their product lines.
Apparel companies are developing programs that either use 100% organically grown cotton, or blend small percentages of organic cotton with conventional cotton in their products.
Current legislation on the labelling of organic products in Europe and the United States only covers seed cotton in its raw and unprocessed form, leaving the labelling of organic textiles to the discretion of the manufacturer or retailer. A number of organizations, mostly organic certification agencies, have developed their own private voluntary standards for organic textiles, aimed at preserving the integrity of the organic nature of the certified fibre as much as possible. At the level of the consumer, these textiles are generally labelled as being “produced from organic cotton”, with the percentage of organic cotton in the final product varying from case to case. More than half the global production of organic cotton is in the hands of two companies – one in Turkey and the other in India, while the 25 largest brands and retailers absorb some 70% of the global organic cotton supply.
There are a number of companies driving the expanded use of domestic and international organic cotton. As a result of consumer interest, organic cotton fiber is used in everything from personal care items (sanitary products, make-up removal pads, cotton puffs and ear swabs), to home furnishings (towels, bathrobes, sheets, blankets, bedding), children’s products (toys, diapers), clothes of all kinds and styles (whether for lounging, sports or the workplace), and even stationery and note cards. In addition, organic cottonseed is used for animal feed, and organic cottonseed oil is used in a variety of food products, including cookies and chips.
The Role of Cotton in Pakistan
Pakistan is the fifth largest producer of cotton in the world, the third largest exporter of raw cotton, the fourth largest consumer of cotton, and the largest exporter of cotton yarn. The cotton is cultivated over 3 million hectares, covering 15% of the cultivable area in the country. Cotton and cotton products contribute about 10% to GDP and 60% to the foreign exchange earnings of the country.
During 2010-11, the crop was cultivated on an area of 2,689 thousand hectares, 13.4% less than last year (3,106 thousand hectares). The production is estimated at 11.5 million bales, lower by 11.3% over the last year’s production of 12.9 million bales and 17.9% less than the target of 14 million bales. The decrease in cultivated area and production is attributed to loss in area under cultivation due to floods, widespread attack of Cotton Leaf Curl Virus (CLCV) and sucking pest/insect in core and non-core area, excessive rain, shortage of water due to canal closure during flood caused fruit shedding in certain areas. The area, production and yield of cotton for the last five years are given in Table 2.
Table 2: Production of Cotton
Year
Area (000 hectors)
Production (000 tonnes)
Yield (Kg / per hectors)
2006-07
3,285
11,720
645
2007-08
3,054
11,655
649
2008-09
2,820
11,819
713
2009-10
3,106
12,914
702
2010-11
2,689
11,460
725
2011-12
2,830 (P)
13,500
730
Source: State Bank of Pakistan Annual Report FY11.
Cotton production supports Pakistan’s largest textile sector, comprising some 521 textile mills, 11.3 million spindles, 8,000 looms in the mill sector, 27,900 shuttle less looms, over 260,000 looms in the non-mill sector, 1,200 knitwear units, 5,000 garment units (with 160,000 industrial sewing machines), 750 dyeing and finishing units nearly 1,200 ginners, 300 oil expellers, and 15,000 to 20,000 indigenous, small scale oil expellers (kohlus). Table-3 shows the picture of Pakistan’s textile industry.
Genetically modified cotton is widely used throughout the world. In Pakistan, Bt cotton was introduced through informal sector in 2002 as a means to reduce crop damage due to bollworms and consequently improve yields. This was a major step forward, but a number of factors have kept it from realizing its full potential.
In recent past two major factors had a significant impact on the economics of cotton production. They are extensive use of agro-chemicals and yield stagnation. Among all agro chemicals, fertilizers and insecticides are of utmost importance. There are no efficient alternatives to synthetic fertilizers and cotton production has to bear the use of nutrient supplements in the form of inorganic fertilizers. Among pesticides, insecticides are group of agrochemicals which is extensively used on cotton.
An organic cotton project was launched by Kings Group in January 2000. Today it yields 80,000 kg of organic cotton lint and supplies garments made of Organic Cotton to customers in Europe and the United States in accordance with their special requirements. According to Kings Group, a small village 80 km North West from Karachi in the fertile Lasbela district in the province of Baluchistan was chosen to grow organic cotton. The village is accessible from Karachi by a major highway. The land was mostly virgin but fertile. Today cotton of the highest quality is grown on 3000 acres of land cultivated on the principles of organic agriculture.
Pakistan cotton yields have been stagnant for the last several years. Factors responsible for the stagnant cotton production include: excessive rains at the time of sowing, high temperatures at the flowering stage, late wheat harvesting resulting in a decline of area planted to cotton, incidence of Cotton Leaf Curl Virus, pest attack and improper production technology in the major cotton growing areas of Punjab and Sindh.