Organic Processing Vo1.6 #1

mitments to farmers in India. The proximity of the active Indian textile industry consuming much of the fiber is a strong factor behind growth in the country as well.

Organic cotton production in India also has the strong backing of the country’s government, which has formed an Organic Cotton Advisory Board, of which OE-India is a member. In addition, a National Center for Organic Farming (NCOF) has been established under the

“I“Incorporation of organic
fiber into product lines has
become the norm, rather
than the exception.”

Indigenous Designs

Ministry of Agriculture in New Delhi. The NCOF works to improve farming practices and fund research through non-govermental or-ganizations(NGOs), universities and research institutes.

Continued expansion will occur in the years to come, especially in areas where clear market signals and strategic partnerships are in place. OE estimates organic cotton fiber production for 2008/09 will be approximately 224,722 MT, a 54 percent increase from the 145,872MT produced in 2007/08. Certified organic cotton will be produced for the first time in Bangladesh, and Argentinean farmers may also certify their production.

In the event of higher than anticipated expansion or unusually strong harvests, organic cotton production in 2008/09 could reach between 250,000 MT (462,486 bales) and 280,000 MT (630,914 bales), representing a growth of 71 to 92 percent, respectively.

Organic Market Growth

Not only is organic cotton production increasing, but the incorporation of organic fiber into product lines has become the norm, rather than the exception.

Some of the world’s largest companies are now committed to organic cotton, including Wal-Mart, Nike, C&A and others. According to the Organic Exchange 2007 Market Report, the top five purchasers of organic cotton in 2006 were Wal-Mart (USA), Nike (USA), Coop Switzerland, Patagonia (USA) and Otto (Germany). Woolworth’s South Africa and C&A (Belgium) in 2007 introduced large programs and OE expects the companies to make the Top Five list in 2008, soon to be announced.

Demand particularly in the North American and European markets has driven this trend and continues to do so. Along with the production of organic cotton fiber, the market for finished goods has increased as well, from $240M in 2002 to nearly $2B in 2007, with growth anticipated to reach $3.5 billion by the end of 2008. Given that the quantity, variety and availability of organic textiles is constantly increasing, Organic Exchange expects the market to exceed

$5 billion by the end of 2009.

The organic cotton market has experienced exponential growth for a number of reasons. The foremost reasons are innovative thinking on the part of brands and manufacturers about the social and environmental impact of their products and improved consumer awareness of sustainability issues.

Companies are making sustainability a core part of their business models. As Nike’s most recent mission statement notes, in reference to the environmental impacts of manufacturing, “To continue with business as usual, ignoring the impact, is not an option.”

In addition, an increased focus on sustainable products at international events such as MAGIC Marketplace and Premier Vision, two of the world’s largest fabric and apparel shows; extensive media coverage of organic fiber products in international consumer and trade publications; and the adoption of organic fiber by many large-scale brands, has brought a tremendous breadth of organic products to the marketplace.

Some examples of actions taken to incorporate organic cotton into major product lines include:

• Nike moved ever closer to its goal of including 5 percent organic cotton in all its cotton-containing apparel by 2010 and expanding its offering of 100 percent organic cotton products.

Company estimates show that more than nine percent of the cotton Nike used globally was organic in 2007, representing approximately 11 million pounds ( 22,917 bales). This is a significant increase from 1997, when the company purchased just 250,000 pounds (521 bales) of certified organic cotton for use in its fall 1998 apparel products.