Organic cotton and fair trade – a development perspective for Africa?

Organic & Fairtrade Competence Centre

HELVETAS

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Projects in Mali, Burkina Faso, Senegal, Benin, KyrgyzstanApprox. 16‘000 smallholder farmers involved in 2008Capacity development of farmer cooperatives and associationsPartnerships with processors, traders and retailers establishedDevelopment of associated crops (sesame, shea etc.)

Helvetas‘ organic & fairtrade cotton initiatives

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Economic and non-economic benefits

Reduction of input costs

FT minimum price and organic premium

Stabilized yields

Revenue = ( Yield Price ) – Production costs

+ less financial and production risk, diversification

+ environmental benefits (soil, water, bio-diversity)

+ health benefits (no pesticides, more food security)

Simplified income model:

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

GHG EmissionsGHG Emissions

CO2

From urea

appli-

cation

Nitrous oxide

Mineral fertilizer

and pesticide

production

1. No mineral fertilizers & pesticides

2. Less emissions of N20

-

Soil organic matter

3. Higher carbon sequestration +4. No emissions from urea

Adaptation to and mitigation of climate change

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Organic cotton production methods

• No synthetic fertilizers, no pesticides, no GMO• Compost and manure application• Integration of animal husbandry• Crop rotation and intercropping• Use of botanical pesticides (neem etc.)• Encouragement of bio- diversity

www.organiccotton.org

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Value chain management

• Post-harvest quality management• Local processing as far as possible• Aim to establish long-term partnerships• Joint planning of production

and sales• Communication of the „added value“• Stakeholder dialogue!

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

… but you can facilitate and strengthen the links between stakeholders, and you can promote demand (PR, buyers’ commitment, sensitise consumers)

„You can‘t push a chain!“

Building partnerships along the value chain

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Organic cotton farms (since 1-4 years) report:

• 20-40% lower yields, but 20% higher gross revenues

• 40% lower input costs, 30% higher gross margin

• Less need to take loans

• Better health due to the absence of pesticides

• Improved nutritional situation

• Improved soil fertility due to compost application(*study conducted by University of Berne)

Impact assessment study in Burkina Faso*

Organic cotton and fair trade – a development perspective for Africa?HELVETAS

Production management:

• Further improve production systems and yields

• Develop rotation crops

• Co-existance with GMO?

Value chain management:

• Management of producer organisations

• Access to finance (trade, investment)

• Market fluctuations!?

Challenges ahead