sourcing better cotton through strategic...

LEARN

Sourcing Better

Cotton through

Strategic Partners

Wednesday, 25 June 2014

G E N E R A L

ASSEMBLY

2 0 1 4

LEAD

DRIVE THE CHANGE

Strategic Partners we will hear from

today

» AbTF (CMiA) Tina Stridde

» Abrapa Denilson Galbero

» Cotton Australia Adam Kay

» IPUD Sukran

LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014

LEARN

Sourcing Better

Cotton through

Strategic Partners

» Tina Stridde, AbTF (CMiA)

G E N E R A L

ASSEMBLY

2 0 1 4

LEAD

DRIVE THE CHANGE

I N C O O P E R AT I O N W I T H T H E B E T T E R C O T T O N I N I T I AT I V E

A m s t e r d a m , 2 5 . 0 6 . 2 0 1 4

5

Côte d‘Ivoire

Zambia Malawi

Mocambique

Zimbabwe

In 2014* CmiA works with 660.000 small-scale farmers and produces

approx. 250,000 tons of CmiA lint.

Ghana

CmiA activates market forces to promote a socially and

environmentally sustainable cotton production in Africa

Burkina Faso

Cameroon

* Tanzania, Ugana, Ethiopia to be integrated

- ILO core labor standards are implemented at field and gin level

- Social projects in health, education and women empowerment

- Tailored qualification programs to improve yields and income

- Exclusively rain-fed cotton production (no irrigation)

- Promotion of organic fertilizers (compost pits)

Excellent Eco-Footprint (low greenhouse gas emissions and zero fresh water consumption)

- Reduced usage of pesticides/ promoting biological pest control

- Exclusion of GM seeds

- No deforestation of primary forests and protection of national parks and birdlife sanctuaries

- Higher income (+30% in average) through higher yields

- Punctual payment and transparent contracts

- Pre-financing of inputs

Profit

Planet

People

Cotton made in Africa promotes sustainability on field and gin level

Commonalities

1. Promoting (i) minimum entry criteria and (ii) development criteria to improve the

performance of farmers.

2. Activating market forces by levying a volume-based fee at brand / retail level.

3. Co-financing training and other support at farm level.

4. Measuring impact of co-financing measures.

5. Geared to be simple, yet effective, to maximize impact at farm and minimize cost at retail

level.

Distinctions

1. BCI is a global standard while CmiA works exclusively in Sub-Saharan Africa.

2. BCI works with farms of all sizes while CmiA works exclusively with smallholder farmers.

3. BCI is GMO “neutral” while CmiA excludes the production of GMO crop.

4. The CmiA ecological footprint is distinctly African while BCI’s footprint will represent about

the world average.

5. CmiA is fully traceable throughout the entire supply chain if implemented as hard identity

preserved cotton

6. CmiA gives brands and retailers the opportunity to label their products while BCI does not.

Commonalities and distinctions between CmiA and BCI

7

8

• CmiA registered cotton traders* sell the CmiA verified cotton to BCI registered spinning mills

• Cotton traders enter the quantities into the BCI cotton tracer

• Cotton traders report quantities of traded CmiA cotton to the AbTF

• AbTF and BCI are regularly crosschecking quantities entered in the cotton tracer by participating cotton traders

• The spinning mills must be registered with BCI

• Retailers need to feed the cotton tracer according to the BCI requirements

COTTON YARN

*Plexus, Reinhart, Louis Dreyfus, Cargill, EKOM

CmiA cotton into the BCI Supply Chain

Contacts and further information

9

Tina Stridde Sales/Marketing

Tina.Stridde@abt-foundation.org

T +49 (0) 40 6461 7461

Christian Barthel Supply Chain

Christian.barthel@abt-foundation.com

T +90 (0) 212 322 90 20

Christoph Kaut Standard, Verificiation,

Impact Assessment

Christoph.Kaut@abt-foundation.org

T +49 (0) 40 6461 8015

Core information on CmiA like

- CmiA Criteria matrix & Governance

- Verification results

- List of registered Traders

- CmiA CI & Communication Guideline

- CmiA Chain of Custody Guideline

- CmiA‘s Annual Report

is available at

www.cottonmadeinafrica.org/downloads

10

T h a n k yo u

LEARN

Sourcing Better

Cotton through

Strategic Partners

» Denilson Galbero, Abrapa

G E N E R A L

ASSEMBLY

2 0 1 4

LEAD

DRIVE THE CHANGE

ABRAPA - Brazilian Association of Cotton Growers 2014 – 15 years since foundation

Denilson Galbero: Sustainability Manager

E-mail: denilson@Abrapa.com.br Phones: +55 61 3028-9701/ +55 61 8112-9750

Brazilian Association of Cotton Growers

Gilson Pinesso President

Amsterdam, June 2014.

Cotton in Brazil - History

System of Bales Traceability of Abrapa

History – Facts: Brazil retook cotton production in early 90´s; Migrated form Southeast (hand picked) to Central

West (machine harvest). Reduced from 24K growers to +/- 1000 (large farms); Brazil the 4º biggest exporter of cotton lint; → Potential: 2 million ton of lint/season; → Domestic market: 900 mil ton/year; Brazil exported more than 1 million ton - season

2011/12, becoming the 3º exporter in the world.

Area, Production, Yield, Export e Import - Cotton

28.6

1,052.8

572.9

767.0

300.0

3.2 17.4 48.0

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

EXPORTAÇÕES (1000 t) IMPORTAÇÕES (1000 t) AREA ( 1000 ha) PRODUTIVIDADE (kg/ha) PRODUÇÃO (1000 t)

Export (1000 t) Import (1000 t) Area (100 Ha) Yield (kg/Ha) Production (1000 t) Fonte: Conab, ICAC e Aliceweb-MDIC

Sustainability – Brazil – Cotton Production

Total Cotton Production Expectation

ABR/BCI & Only ABR

Season 2013/2014 - ABRAPA

ABRAPA

ABR/BCI

Number of

Farms

Production

Seeded (Ton)

Total Area

(Ha)

1. ABRAPA

ABR+BCI 173 932.761 294.218

2. ABRAPA

Only ABR 63 186.095 64.355

TOTAL ABRAPA 236 1.118.856 358.573

Projections – Brazilian Cotton

Cotton – Largest Producers in the World

Fonte: ICAC – Maio, 2014

6.925

6.400

7.400 7.300

6.700

6.003

1.194

1.960 1.877

1.310 1.644 1.652

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Proj. Proj.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

CHINA BRASIL INDIA USA PAQUISTÃO UZBEQUISTÃO OUTROS

Cotton – Largest Exporters in the World

0.433 0.435

1.052 0.938

0.767 0.814

0.000

0.500

1.000

1.500

2.000

2.500

3.000

3.500

Proj. Proj.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

BRASIL USA INDIA AUSTRALIA CFA ZONE UZBEQUISTÃO

Fonte: ICAC – Maio, 2014

Contacts: 1- Abrapa: Denilson Galbero: Sustainability Manager

E-mail: denilson@Abrapa.com.br Phones: +55 61 3028-9701/ +55 61 8112-9750 E-mail: abrapa@Abrapa.com.br Phones: +55 61 3028-9700 E-mail: imprensa@Abrapa.com.br Phones: +55 61 3028-9700

Obrigado! abrapa@abrapa.com.br

Cotton in Brazil - History

System of Bales Traceability of Abrapa

LEARN

Sourcing Better

Cotton through

Strategic Partners

» Adam Kay, Cotton Australia

G E N E R A L

ASSEMBLY

2 0 1 4

LEAD

DRIVE THE CHANGE

27

Best Practice and Australia Cotton

Summary of Presentation

» High performance industry

» Strong commitment to responsible production

» Significant industry improvement

» History of best practice implementation

» myBMP and Better Cotton

28

Best Practice and Australia Cotton

High Performance Industry

» 1500 cotton farms

» High Yields - Av irrigated yield of 2T/ha lint in 2013

» High Quality - 85% base grade and above in 2013

» Focus on production efficiency

» Fast adopters of new technology

» Biotechnology

» Round bale pickers

29

Best Practice and Australia Cotton

Strong Commitment to Responsible Production

» Environmental awareness and stewardship started in early

1990’s

» Conducts own industry environmental audits (3 done)

» Cornerstone of industry R&D direction

» Implemented industry Environmental Monitoring program -

BMP in mid 1990’s

» Continued support & improvement of Best Practice

» Strong focus on continual improvement goals

30

Best Practice and Australia Cotton

Significant Industry Improvements

» 28% increase in average yields over last 2 decades

» 95% reduction in pesticide use over last 15 yrs

» 40% increase in water productivity over last decade

» 40% of cotton farm area dedicated to native veg

» Stewardship program for resistance management

» Focus on full farm Best Practice outcomes (myBMP)

31

Best Practice and Australia Cotton

Long History of Best Practice

» Launched Best Management Practice 20 years ago

» Continued and significant commitment to ongoing

development and improvement

» Re-launched as myBMP in 2010 - web based

» Covers all areas of cotton production

» Nationally recognised as a model for other agricultural

industries to follow

32

Best Practice and Australia Cotton

Better Cotton and myBMP

» Long history of responsible cotton production

» Many similarities between Better cotton and myBMP

standards

» Opportunity for myBMP cotton to be recognised as Better

Cotton

» Benchmarking project initiated in early 2013

» Agreement signed in June 2014

33

Best Practice and Australia Cotton

Australian cotton as Better Cotton

» Must be produced on myBMP certified farm

» Certified farm must nominate each year to participate

» Participating farm receive annual Farm ID code

» Farm ID code allows cotton to be entered onto the BCI

Tracer system and recognised as Better Cotton

» BCI tracks cotton through supply chain

34

Best Practice and Australia Cotton

myBMP and Better Cotton

Cotton Merchants in Australia* * Merchants must be BCI members to enter cotton into BCI Tracer program

• Auscott Limited • Brighann Cotton • Cargill Cotton • CNCGE Australia • Ecom Commodities • Glencore Grain • L&H Cotton • Louis Dreyfus Commodities

• Namoi Cotton • Noble Resources Australia • Omni Cotton Australia • Plexus Cotton • Queensland Cotton • Reinhart Australia • S & G Cotton Australia • Twynam Agricultural Group

LEARN

Sourcing Better

Cotton through

Strategic Partners

» Sukran, IPUD

G E N E R A L

ASSEMBLY

2 0 1 4

LEAD

DRIVE THE CHANGE

IPUD – İYİ PAMUK UYGULAMALARI DERNEĞİ GOOD COTTON PRACTICES ASSOCIATION

IPUD – GOOD COTTON PRACTICES ASSOCIATION

MISSION

Improve cotton production in Turkey for the benefit of cotton farmers

for the environment where cotton is grown and

for the future of the sector Founded on 25 September 2013

IPUD – BOARD MEMBERS

UPK

National Cotton Council

TANMANLAR Agricultural Enterprises

TZOB

The Union of Turkish Agricultural Chambers

TARİŞ

Agricultural Sales Cooperatives Union

ÇUKOBİRLİK

Agricultural Sales Cooperatives Union

İTB

Izmir Commodity Exchange SPOT Textile

SANKO Textile

İHKİB

Istanbul Apparel Exporters Association

İTKİB

Istanbul Textile and Raw Material Exporters Association

TTSİS

Turkish Textile Employers Association

IPUD – MEMBERS

IPUD has grown to 43 members since its inception among these: • 25 Companies • 8 Exporters Unions • 4 Farmers Unions • 2 Commodity Exchanges • 1 Textile Industry Union • 1 Farmer • 1 Employers Union • 1 National Council

For the full list of members please e-mail: yonetim@iyipamuk.org.tr

IPUD AS A BCI STRATEGIC PARTNER

BCI and IPUD are engaged in a long-term partnership with the objective of fostering the production of Better Cotton in Turkey. IPUD will provide leadership for the Better Cotton Standard in Turkey. The aims of this partnership are to reduce the impact of cotton production on Turkey’s environment, improve the livelihoods of cotton growing communities, and increase the availability and uptake of Better Cotton to BCI members.

2013 PRODUCTION NUMBERS

BETTER COTTON PRODUCTION AREA: 7,237 (he) BETTER COTTON LICENCED FARMERS: 278 PRODUCED SEED COTTON: 34,517 (kg) GINNED LINT BETTER COTTON: 9,200 (mt)

2013 REGIONS

2013 REGIONS & PRODUCER UNITS

EGE – (Aydın region) • TARIŞ • BIRPAŞ CUKUROVA – (Adana, K. Maraş, Hatay regions) • ADANA COMMODITY EXCHANGE • KIPAŞ • NALÇABASMAZ GAP – (G. Antep, Ş.Urfa, Mardin, Şırnak regions) • ŞAHIN

EGE 24%

CUKUROVA

19%

GAP 57%

REGIONAL DISTRıBUTION LINT COTTON PRODUCTION

PROJECTED 2014 PRODUCTION NUMBERS

BETTER COTTON PRODUCTION AREA: 14,450 (he) BETTER COTTON FARMERS: 594 EXPECTED SEED COTTON: 72,202 (kg) EXPECTED LINT BETTER COTTON: 27,437 (mt)

2014 REGIONS

2014 REGIONS & PRODUCER UNITS

EGE – (Aydın region) • TARİŞ • BIRPAŞ • AKASYA • CELEPLER • PÜTAŞ CUKUROVA – (Adana, K. Maraş, Hatay regions) • ADANA COMMODITY EXCHANGE • KIPAS • NALCABASMAZ • ÇUKOBİRLİK (also in GAP) • PROGEN GAP – (G. Antep, Ş.Urfa, Mardin, Şırnak regions) • SAHIN • AKKUCAK • YUSUFCAN

EGE 49%

ÇUKUROVA

29%

GAP 22%

REGIONAL DISTRıBUTION LINT COTTON PRODUCTION

IPUD CONTACTS:

Şükran Bayçura yonetim@iyipamuk.org.tr +90 543 693 2454 www.iyipamuk.org.tr

Be part of something Better