TEXTILE EXCHANGE
REGIONAL OCRT – TURKEY, EGYPT & CENTRAL ASIA


As the second largest producer and the largest consumer of cotton in the world, China has a huge potential to influence growth of the organic cotton sector globally. With its inherent sustainable water management and socio-economic benefits to farmers, organic cotton represents an important opportunity for China.

2019 Regional OCRT China


Textile Exchange and CottonConnect would like to sincerely thank all those who joined us for the first co-organized regional Organic Cotton Round Table (rOCRT) in China on the March 14, 2019.

Responding to industry demand, CottonConnect and Textile Exchange brought together leading industry professionals during the Intertextile Shanghai Apparel and Fabrics Exhibition for an event specifically focused on organic cotton demand and supply in China.

The event was organized as a platform to share knowledge to support participants’ strategies to grow organic cotton in China, and as a launching pad for the community to take action. With active engagement of over 45 participants from government, initiatives, farmers, suppliers and (local and international) brands alike, we believe that this inaugural rOCRT China was a success in cross sector pollination of challenges and opportunities.

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    When

    March 14, 2019
    12:30 – 17:30

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    Where

    InterContinental Shanghai
    Hongqiao NECC, China

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Please find below links to the rOCRT-China discussion summary and presentations shown on the day:

Much was discussed during the rOCRT-China, and the following action points were identified:

  • Address the local challenges on non-GMO seed.
  • Raise awareness organic cotton in China (via supply chain, consumer and education)
  • Improve market linkages through innovative business models
  • Develop rOCRT-China as an annual event

We will endeavour to work with the sector to take some of these action forward. If you have an interest in joining us in this journey, please contact Evonne@TextileExchange.org.

REGISTRATION NOW OPEN!

Textile Exchange is delighted to invite you to join us in Izmir this May for the 2nd Regional Organic Cotton Round Table (OCRT), hosted in collaboration with İZFAŞ at the 9th EKOLOJİ Trade Show.

When? 10-11th May 2018 (excursion and networking dinner on the 10th, and Regional OCRT event on the 11th)
Where? Fuarizmir, İzmir – Turkey’s newest and biggest fair complex

REGISTER NOW

2018 Global OCRT general assembly: Highlights from China

  • Majority of the cotton is grown in Xinjiang province where soil conditions are poor and water scarce. Methods of improving soil and conserving water is a key to sustaining livelihood for the contract farmers relying on seasonal work in the cotton fields.
  • There is potential for growing the production of organic cotton in China. However key challenges in market linkages, minimum quantity and pricing remains. Some solutions are being explored, including expanding supply of ELS, producing quality organic cotton blends with other sustainable fibers and promoting in-transition programs that are tied to carbon insetting and soil improvements.
  • Call to action: demand coalition for smaller brands to overcome minimum quantity
Download 2018 Slides

2017 Global OCRT: Highlights from China Strategy Meeting

OBJECTIVES:

To provide background and explore the challenges and opportunities of the Chinese organic cotton market.

HIGHLIGHTS:

  • Hu Kehua, of China National Textile and Apparel Council (CNTAC), shared (via video) CNTAC’s plans for organic cotton, including: (i) setting up a “China Organic Textile Alliance”, (ii) establishing a group standard and (iii) engaging local policymakers.
  • Felicia Shi, of GOTS China, explained how all local activities relating to organic product must be administrated by the Chinese-NOP, and that organic products certified to GOTS and OCS must therefore either be exported or recertified and relabeled. Felicia shared concerns about the adoption of a group standard as double certification is required.
  • Alison Ward, of CottonConnect, gave an update on their projects in Shandong and Xinjiang.
  • Veronica Yow, of Rare, gave an update on Rare’s efforts to transition 300 acres to organic in Hubei and Xinjiang, and also shared highlights from recent brand visits.
  • The group was interested in China both as a supply source and a potential market, but agreed that they needed to better understand the market.
  • Due to its high quality and longer staple length (and premium), there is market potential for Extra Long Staple (ELS) organic cotton.
  • Local brands have indicated interest in transitioning their cotton to organic but are facing difficulty with the minimum required quantity, and international brands have no visibility of the downstream supply chain except through manufacturers – both issues relate to the need for market linkages.

  • Comparatively, the organic market in China is quite small, with only 11 producer groups and 269 GOTS certified facilities. This makes efforts to understand and map the supply chain a manageable task.
  • It was also agreed that government engagement is key in China and that this needs to happen at multiple levels.
  • The group discussed the challenges and opportunities facing the organic cotton market in China:
    • Challenges: high premium (10-20%) compared to India; access and availability of non-GM seeds; the need for support during the three year in-conversion period; lack of incentive to grow organic cotton compared to fruits and vegetables that fetch higher prices; stringent requirements of Chinese-NOP; non recognition of GOTS/OCS; and market access/linkages.
    • Opportunities: China is a major sourcing country for brands and retailers with an estimated 60% of cotton passing through the Chinese textile supply chain. The country is also the fourth largest organic market with a growing GDP per capita and middle income earners.

OUTCOMES & NEXT STEPS:

  • The group concluded that a multi-stakeholder approach is key to creating market linkages and engaging government
  • Next steps include: to better understand the supply chain, create a multi-stakeholder platform, develop market linkages and engage government.
Download 2017 Agenda

Did you know?

Front Title

This region produces more than 20% of organic cotton globally.





Back Title

Check out Textile Exchange’s 2017 Organic Cotton Market Report here. At the Regional OCRT, we will look at supply trends and regional business models that create value for all involved.

Front Title

This region not only has a cotton cultivation history of several thousand years, but was also one of the pioneers of organic cotton.



Back Title

Turkey has been producing cotton organically for over 35 years, and retains its GMO-free status. See Turkey Sourcing Guide for more info. At the Regional OCRT, we will discuss integrity, transparency, and how to support regional value networks.

Front Title

This region produces both long and extra-long staple organic cotton, which feeds into local and vertical production.



Back Title

Check out the new Organic Cotton Fiber Classification Guide published by Textile Exchange and Kering. The 2018 Regional OCRT will host a session on luxury, high quality organic cotton that promises sustainable, premium products.

Front Title

This region is experiencing growing momentum in organic agriculture, with strong support from NGOs and Governments, underpinning the geographical and economic advantages.

Back Title

Check out Textile Exchange and Kering's new Best Practices Guide For Organic Cotton Trade Models. The 2018 Regional OCRT will host a breakout on the call-to-action for a regional cluster that builds on this momentum, and on the MOSP results.

Regional OCRT History

OBJECTIVES:

To provide background and explore the challenges and opportunities of the Chinese organic cotton market.

HIGHLIGHTS:

  • Hu Kehua, of China National Textile and Apparel Council (CNTAC), shared (via video) CNTAC’s plans for organic cotton, including: (i) setting up a “China Organic Textile Alliance”, (ii) establishing a group standard and (iii) engaging local policymakers.
  • Felicia Shi, of GOTS China, explained how all local activities relating to organic product must be administrated by the Chinese-NOP, and that organic products certified to GOTS and OCS must therefore either be exported or recertified and relabeled. Felicia shared concerns about the adoption of a group standard as double certification is required.
  • Alison Ward, of CottonConnect, gave an update on their projects in Shandong and Xinjiang.
  • Veronica Yow, of Rare, gave an update on Rare’s efforts to transition 300 acres to organic in Hubei and Xinjiang, and also shared highlights from recent brand visits.
  • The group discussed the challenges and opportunities facing the organic cotton market in China:
    • Challenges: high premium (10-20%) compared to India; access and availability of non-GM seeds; the need for support during the three year in-conversion period; lack of incentive to grow organic cotton compared to fruits and vegetables that fetch higher prices; stringent requirements of Chinese-NOP; non recognition of GOTS/OCS; and market access/linkages.
    • Opportunities: China is a major sourcing country for brands and retailers with an estimated 60% of cotton passing through the Chinese textile supply chain. The country is also the fourth largest organic market with a growing GDP per capita and middle income earners.
  • The group was interested in China both as a supply source and a potential market, but agreed that they needed to better understand the market.
  • Due to its high quality and longer staple length (and premium), there is market potential for Extra Long Staple (ELS) organic cotton.
  • Local brands have indicated interest in transitioning their cotton to organic but are facing difficulty with the minimum required quantity, and international brands have no visibility of the downstream supply chain except through manufacturers – both issues relate to the need for market linkages.
  • Comparatively, the organic market in China is quite small, with only 11 producer groups and 269 GOTS certified facilities. This makes efforts to understand and map the supply chain a manageable task.
  • It was also agreed that government engagement is key in China and that this needs to happen at multiple levels.

OUTCOMES & NEXT STEPS:

  • The group concluded that a multi-stakeholder approach is key to creating market linkages and engaging government
  • Next steps include: to better understand the supply chain, create a multi-stakeholder platform, develop market linkages and engage government.
OBJECTIVES:

To provide background and explore the challenges and opportunities of the Chinese organic cotton market.

HIGHLIGHTS:

  • Hu Kehua, of China National Textile and Apparel Council (CNTAC), shared (via video) CNTAC’s plans for organic cotton, including: (i) setting up a “China Organic Textile Alliance”, (ii) establishing a group standard and (iii) engaging local policymakers.
  • Felicia Shi, of GOTS China, explained how all local activities relating to organic product must be administrated by the Chinese-NOP, and that organic products certified to GOTS and OCS must therefore either be exported or recertified and relabeled. Felicia shared concerns about the adoption of a group standard as double certification is required.
  • Alison Ward, of CottonConnect, gave an update on their projects in Shandong and Xinjiang.
  • Veronica Yow, of Rare, gave an update on Rare’s efforts to transition 300 acres to organic in Hubei and Xinjiang, and also shared highlights from recent brand visits.
  • The group discussed the challenges and opportunities facing the organic cotton market in China:
    • Challenges: high premium (10-20%) compared to India; access and availability of non-GM seeds; the need for support during the three year in-conversion period; lack of incentive to grow organic cotton compared to fruits and vegetables that fetch higher prices; stringent requirements of Chinese-NOP; non recognition of GOTS/OCS; and market access/linkages.
    • Opportunities: China is a major sourcing country for brands and retailers with an estimated 60% of cotton passing through the Chinese textile supply chain. The country is also the fourth largest organic market with a growing GDP per capita and middle income earners.
  • The group was interested in China both as a supply source and a potential market, but agreed that they needed to better understand the market.
  • Due to its high quality and longer staple length (and premium), there is market potential for Extra Long Staple (ELS) organic cotton.
  • Local brands have indicated interest in transitioning their cotton to organic but are facing difficulty with the minimum required quantity, and international brands have no visibility of the downstream supply chain except through manufacturers – both issues relate to the need for market linkages.
  • Comparatively, the organic market in China is quite small, with only 11 producer groups and 269 GOTS certified facilities. This makes efforts to understand and map the supply chain a manageable task.
  • It was also agreed that government engagement is key in China and that this needs to happen at multiple levels.

OUTCOMES & NEXT STEPS:

  • The group concluded that a multi-stakeholder approach is key to creating market linkages and engaging government
  • Next steps include: to better understand the supply chain, create a multi-stakeholder platform, develop market linkages and engage government.

The EKOLOJİ IZMIR Organic Products Fair, hosted by IZFAS, is the leading trade fair for the organic sector in Turkey. The fair takes place annually at Fuarizmir, Turkey’s largest fair center, and is growing each year. Seeing the growth of interest in organic textiles,EKOLOJİ IZMIR is strengthening its focus in this area and, in April 2016, invited TE to deliver a workshop. The workshop was highly successful and attracted key players and leading experts from across the industry, as well as over 70 representatives from both Turkish and international textile companies. Following strong signals during the 2016 OCRT in Hamburg that there was sufficient demand for the continuation of such workshops,EKOLOJİ IZMIR and TE formed a collaboration to develop this into an annual event, applying the framework of the well-established Organic Cotton Round Table (OCRT). The inaugural R-OCRT was held in Izmir in April 2017.

Through bringing together the strengths and capabilities of EKOLOJİ IZMIR and TE, the aim is to support the development of the organic textiles sector in Turkey and surrounding regions and to maximize the reach and impact of these efforts. The Regional-OCRT will offer an international audience the chance to learn more about the unique benefits of sourcing from this region, with its strong history in organic agriculture and high quality, vertically integrated production.

Quick Links

About organic cotton

Organic cotton is cotton that is produced and certified to organic agricultural standards.

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PFM ROUND TABLES

Preferred Fiber & Material Round Tables

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2018 Market reports

The 2018 Preferred Fiber & Materials Market Report and the Organic Cotton Market Report are now available.

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PFM Benchmark

The Preferred Fiber & Materials (PFM) Benchmark helps companies measure, manage and integrate a PFM strategy.

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SUSTAINABILITY ASSESSMENT

A framework for assessing the environmental, social & economic impacts of organic cotton agriculture.

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Glossary

A selection of some of the key terms and abbreviations used in the industry.

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Contact Us

  For more information, don’t hesitate to contact the team at: OCRT@textileexchange.org