Presentación de la experiencia OCA, una iniciativa de múltiples partes interesadas centradas en la creación de un próspero sector del algodón orgánico que beneficia a todos, desde el agricultor al consumidor.

1. ©OCA | All rights reserved
The Organic Cotton Accelerator
13.12.2016 Laure Heilbron
Presentation for the “Cotton weaving opportunities
for Latin America and the Caribbean” conference

2. ©OCA | All rights reserved
Founding partners
Network partners
What is the Organic
Cotton Accelerator?
OCA is a multi-stakeholder
initiative focused on creating
a prosperous organic cotton
sector which benefits
everyone—from farmer to
consumer.
OCA represents a group of
frontrunners that represent
~70% of buying power in the
organic cotton market

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Organic cotton has many benefits
Sources: FAO (2015) Measuring sustainability in cotton farming systems; Life Cycle Assessment (LCA) of organic cotton – A global average, PE International for Textile
Exchange, 2014; Greenpeace (2010) Picking Cotton: The choice between organic and genetically-engineered for farmers in South India
Improves
farmer
incomes
Decreases
credit
dependency
Promotes
gender
equality
Improves
worker
health and
safety
Livelihood
Fights
climate
change
Reduces
water
footprint
Improves
soil health
Improves
biodiversity
Environment

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But there are challenges
Fragmented organization of the sector
• Main actors in the sector are not
aligned on a vision for the future
• Initiatives to tackle supply and demand
challenges are fragmented
An insecure business case for the value chain
• Supply insecurity and integrity challenges
• Quality and contamination issues
• Lack of supply chain transparency
The farmer business case is under pressure
• Lack of access to quality organic seeds
• Lower yields and profits while lacking
secure offtake of organic produce
• Organic differentials often do not end up in
the farmers’ hands

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What is OCA’s history and future agenda?
Initiation Strategy
Proto-
typing
Scaling
2013-2014 2015 2016-2017
(focus on India)
2018 onwards

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Global organic
cotton sales
Demand for organic food and cotton is growing
Global organic sales
are growing
- Ecological benefits
- Health benefits
The market for organic
cotton has grown
- Most sustainable cotton
- Increasing popularity
Sources: FiBL and IFOAM: “The World of Organic Agriculture: Statistics & Emerging
Trends 2016”; Textile Exchange Organic Cotton Market Reports 2010-2015
6
Global organic
food sales, in
billion USD
+141%
2005 2014
2006 2015
+10-
15%
p.a.

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7
Average cotton farming P&L: Cotton income of current organic vs conventional cotton farmers
in Madhya Pradesh, India
But organic cotton farmers are among the poorest
Difficult enabling environment
Short contracts, low prices Few viable alternatives
Sources: CottonConnect and NewForesight analysis of field data; TruePrice and IDH: “The True
Price of Cocoa from Ivory Coast”; Fountain, A.C. and Hütz-Adams, F. (2015): “Cocoa Barometer
2015”
$0.7-1.3
($330-462)
$0.6-1.9
($220-695)
$0.5-3.9
($183-1,423)
$1.1-2.7
($402-986)
$1.9
($694)
Farmer incomes per day
(and per year)
Strict/expensive standard
-80000
-60000
-40000
-20000
0
20000
40000
60000
80000
100000
Cotton revenue Production costs
Net income
INR/ha
Organic Conventional

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The consequences are severe: production drops,
integrity is questioned, reputation is at risk
8
Production
(MT)
source: TE market reports
Production decrease Integrity issues Reputational risk
• GMO contamination
• Double-selling of TCs
Sustainability
claims challenged
by media and
consumers
-53%
These are crippling, systemic issues;
there is no easy fix here!
Sustainability issues
Severe poverty
Indebtedness
Less ecological
benefits

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-60000
-40000
-20000
0
20000
40000
60000
80000
Cotton revenue Production costs Net income
Organic
9
If we do it right,
there can be a more attractive business case
3: Improved sourcing
practices and inputs
1: Work with the
farmers of the future
2: Reward farmers
for their efforts
Average cotton farming P&L: Cotton income of improved organic farmers in MP, India
INR/ha
Sources: CottonConnect, NewForesight analysis of field data
Income from cotton of
$1.25-1.87 p.d.
($456-683 per year)
Conditions:
Profit increase:
+ Productivity
- Input costs and use 4: Access to the
right seeds

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What will OCA do?
Seed breeding program
Working with research institutes and seed breeders to increase the quality
and supply of organic cotton cultivars
Farm level incentives
Piloting interventions that improve the farmer business case
Improved sourcing practices
Piloting interventions that balance risk across the supply chain and improve
the business case for spinners and garment manufacturers
Traceability system
Accelerating the development of an efficient, up-to-date traceability
system to ensure the integrity of organic cotton
Sector organization
Aligning civil society-, industry- and government initiatives towards a
collective vision and joint interventions that aim for structural change

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How will OCA fix the business case for organic cotton?
OCA aims to fix the business case for organic cotton
Organic
cotton
breeding
program
Improved
farmer
business
case
Improved
sourcing
practices
Traceability
system
Secretariat Sector
organization
Ginning Spinning
Fabric
makers
Garment
manufact.
Farming
Brand/
Retail

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OCA strengthens the value chain of our partners
Source: NewForesight analysis based on interviews and desk study
Demand Program
(middle and end of supply chain)
Pilot
aims
Attractive incentives
throughout supply
chain
Traceable
integrity of
organic cotton
Supply Program
(start of the supply chain)
Improved
integrity at the
source
Improved farmer
business case
OCA
brand
commit-
ments
Brands provide information on
(organic) cotton sourcing practices for
benchmark study
Brands test customized best sourcing
practices to learn and consequently
improve current sourcing strategy
Brands develop and implement sourcing
pilots with farm program(s) in India, incl.:
Purchase guarantees for X volume
Pre-decided differential for farmer
Access to seed clause in contracts
Learn, Adjust, Scale-up

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OCA organizes the organic cotton sector
Sector organization
Agenda 1
Organic cotton offers an
attractive business case for
each value chain actor
Agenda 2
The organic cotton sector is
organized to work towards a
shared vision and strategy
Agenda 3
Organic and sustainable cotton
initiatives collaborate to grow
the use of sustainable cotton
Now Future

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laure@organiccottonaccelerator.org
www.organiccottonaccelerator.org