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Full size image: 1.‘Insert’, ‘Picture’ 2.’Send Backwards’ twice to make text and arrow appear 3.Use an image which shows title text clearly 1 IDH Syed Rizwan Vajahat
Making global cotton production better for the people who produce it, better for the environment it grows in and better for the sector’s future. BCI Supply chain event Syed Rizwan Vajahat
BCI aims to transform cotton production worldwide by developing Better Cotton as a sustainable mainstream commodity. BCI- SPECIFIC AIMS: 1- Reduce the environmental impact of cotton production 2- Improve livelihoods and economic development in cotton producing areas 3- Improve commitment to and flow of Better Cotton throughout supply chain 4- Ensure the credibility and sustainability of the Better Cotton Initiative Improve… livelihoods and economic development in cotton producing areas Increase… commitment to and flow of Better Cotton throughout the supply chain Reduce… The environmental impact of cotton production Ensure… the credibility and sustainability of the Better Cotton Initiative www.bettercotton.org
How BCFTP Works BCFTP Secretariat: IDH, BCI Coordination, fund and project management BETTER COTTON FAST TRACK FUND (€50-60 million over 5 years) Goal: 1.5 million MT Lint of Better Cotton by 2015 Upto 50% Public Funders Private Partners Upto 50% Supply Chain Engagement Implementing Partners Farmers Standard, Licensing, Verification and Traceability Training Project Assessment LICENSED BETTER COTTON Executive Board Policy making body – strategic planning, financial governance and delivery of the Charter Investors Committee Approval and oversight of investment decisions
Results: Environmental and Economic Indicators Impact Assessment
In 2013-14, 812,000 MT Lint Better Cotton was produced. Other sustainability standards kept static from 2012- 2013 basis trends awaiting figs. 4.5% of the world’s cotton is sustainable… 6 1.0% 1.4% 1.2% 2.1% 4.5% 3.8% of Global Production of Cotton …and 71% of all sustainable cotton is Better Cotton
“By 2018 the adidas Group has committed to using 100% ‘Sustainable Cotton’ in all its brands.” “By 2020, the company wants all of the cotton used in its products to come from sustainable sources.” “We signed on to the BCFTP in 2011 with the commitment to source 100 % more sustainable cotton by the end of FY20 ”
WHERE DOES BETTER COTTON GROW ? BCI and AbTF (CMiA) Signed a strategy partnership agreement on August,2013. CMiA cotton can be recognized as better cotton under certain condition. So the global supply of better cotton increases because of the agreement.
LivelihoodsEnvironmentSupply ChainBCI Sustainability Global Indicator Number of Better Cotton farmers Better Cotton hectares under cultivation Better Cotton lint metric tonne (MT) Earned income as % of global costs volume a) produced b) bought by spinners 2012 actual165,000685,000 a) 670,000 50% b) n/a 2013 licensed*240,000815,000812,00050% 2015 target1 million2 million a) 2.6 million 75% b) 1.5 million 2020 target5 million9 million a) 8.2 million 100% b) 4 million Vision: Market Transformation Better Cotton becomes a commodity The volume licensed is based on the expected volume of seed Better Cotton to be harvested. For some regions, harvesting has not yet been completed. The estimates presented here are based on the total area under cultivation per project multiplied by expected average yield. Yield may vary and it is possible that final production figures will be different. These values are thus only indicative
BCFTP Portfolio 2014 - Projections Projected Project Costs : 7,5M 44 projects in 5 countries Projected MT lint: 1.6 million Projected number of farmers: 581,720 Projected BC hectares: 1.84 million Mozambique: 2 project Licensed MT Lint: 28,000 Licensed nr. of farmers: 115,000 Projected BC hectares: 116,000 China: 10 projects Projected MT Lint: 184,000 Projected nr. of farmers: 43,258 Projected BC hectares: 70,111 Mali: 2 project Projected MT lint: 87,822 Projected nr of farmers: 65,000 Projected BC hectares: 197,250 India: 23 projects Projected MT Lint: 365,041 Projected nr. of famers: 224,723 Projected BC hectares: 435,216 Pakistan: 7 projects Projected MT Lint: 360,509 Projected nr. of farmers: 133,739 Projected BC hectares: 405,306 *Brazil: Benchmarking with the ABRAPA’s ABR standard Licensed MT: 880,000 Licensed nr of farmers: 214 Projected BC hectares: 620,000 Better Cotton is establishing a significant footprint. In addition there is cotton from the partnership countries.
Engagement Strategy The key stakeholders must be in agreement and vested in goal Must understand the goal and better cotton Agree on Goal Internally Buy in from key internal stakeholders Understand your Supply Chain- Map it Business as Usual Breakdown goal into manageable segments and execute on ground Allocate resources and time to execute Execute Procurement Plans Include Better Cotton in their reporting. Address challenges as they come up. Track & Trace BC to be treated as a KPI. Overall goal broken down by business unit and allocated and communicated. Clarity within the teams as to what they are working towards Better Cotton supply chain no different then conventional cotton. Increase awareness on Mass Balance Administrative system Identify your key supply chain partners Primary attention on large suppliers & low hanging fruit Work with existing supply chain Top down, work with the existing supply chain.