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, Kyrgyzstan Approx. 16 ‘ 000 smallholder farmers involved in 2008 Capacity development of farmer cooperatives and associations Partnerships with processors, traders and retailers established Development 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 Emissions CO 2 From urea appli- cation Nitrous oxide Mineral fertilizer and pesticide production 1. No mineral fertilizers & pesticides  2. Less emissions of N 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 

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