Cotton 20130812 bcftp end year report 2012

From Field to Fashion

Better Cotton Fast Track Program END YEAR REPORT 2012

“Three years after beginning the implementation of a shared vision in 2010, the BCFTP has come a long way. Today, the Fast Track Fund supports over 30 capacity building projects and reaches nearly 250,000 farmers and farm workers in six cotton producing countries. This platform of nine brands, four public funders and one strong sustainability standard has aided in doubling the volume of sustainable cotton in the market.

Working through these challenges with the various stakeholders of the Program – brands, funders, implementing partners and supply chain partners, I am assured that we are slowly but surely taking the necessary steps to get to where we want to be.

In keeping with the principles of any demand driven forum, the BCFTP focus is now expanding to include more supply chain interventions with increased involvement of mid-stream players and existing supply chains. As the Program matures we can see an even longer, more challenging road ahead.

Joost Oorthuizen

I am convinced that three years and countless cotton bolls later, our vision is stronger than ever.�

Member of Executive Board - Better Cotton Fast Track Program

2010

2011

2012

Better Cotton Training

Introduction Produced in over a 100 countries and consumed in even more, cotton is becoming an increasingly vital component of the global economy. As a resource, cotton is natural, renewable and versatile. As a cash crop however, cotton is one of the most misunderstood crops in agriculture today. Consuming 10%of the world’s agricultural chemicals and thousands of liters of freshwater, cotton cultivation is far from sustainable.

In addition to the threat posed by the agricultural practices prevalent in cotton, cotton farmers in many of the producing countries fall below the poverty line and are victims of deplorable living and working conditions.

Addressing the challenges to sustainability faced in the production of cotton, the Better Cotton Initiative (BCI) has developed a standard with the potential to mainstream sustainable cotton. With several brands expressing an interest in BCI, the “Better Cotton Fast Track Program” (BCFTP) was founded in 2009-10 by a group of leading private and public organizations, convened and managed by IDH the Sustainable Trade Initiative. Through a demand-driven strategy based upon the financial commitment of leading retailers and brands and match-funded by a group of public funders the Program invests in farmer capacity building projects across the globe. Additionally, the Program also promotes the demand for Better Cotton by encouraging supply chains of participating retailers and brands to procure the fibre produced.

300000 Women Farrmers and Workers Trained in Better cotton Principles Projected cost efficiency ( EUR/MT) per country 250000 Projected farmers 12000 200000 50.00 Licenced farmers India 10000 150000 Trained farmers 40.00 Pakistan 8000 100000 China 6000 50000 30.00 Mali 4000 0 20.00 Brazil 2000 2010 2011 2012 Global projected 10.00 0 cost line 2010 2011 2012 0.00 2010 2011 2012 Projected cost efficiency ( EUR/MT) per country Better Cotton Production 50.00 900000 India 800000 Projected 40.00 Pakistan Women Farrmers and Workers Better Cotton Lint 700000 Trained in Better cotton Principles China 60000030.00 12000 Licenced 500000 Mali Better Cotton Lint 40000020.00 10000 Brazil 300000 “As one of8000 our most important fibers, VF is Produced Global projected 10.00 200000 Better Cotton focused on developing market-driven sources cost line Lint 6000 100000 of sustainable cotton, including Better Cotton, 4000 0 0.00 2010 2011 2011 2012 2010 2012 which make significant improvements to the 2000

environmental0 footprint of cotton production 2010 2011 of cotton 2012 and to the economic livelihood farmers in China, India, Pakistan, and Brazil.

SustainWomen Farrmers and Workers Trained Better pillar cotton Principles able Cotton is aincore in our supply chain BCFT Fund allocation 2012Cotton Production Better 12000 sustainability strategy.” Peter Higgins, Senior 16% 900000 10000 Manager, Product and Supply Chain Sustain800000 Projected India 8000 700000 ability Better Cotton Lint 7%

Pakistan

6000600000

*VF Corporation is a global leader in branded lifestyle apLicenced 4000500000 China parel 30 Cotton Lint 6% and footwear 400000with a diverse portfolio of more thanBetter brands2000 including The North Face®, Wrangler®, Timberland®, Mali 300000 Produced 57% 0 200000 Vans® and Lee® Better Cotton Lint 2010 100000 0

14%

Brazil 2012

2011

2010

2011

2012

Better Cotton Production

Match-funding through the Better Cotton Fast Track Fund (BCFTP): Public Funders and Retail Brands The BCFTF works on a match-funding model with public funders meeting the private investments brought in by retail brands. In 2012, the fund value was nearly 7.4 million euros and investments through the BCFTP were channeled into 31 projects on the ground.

Currently the retail brands in this pre-competitive coalition include Ikea, adidas, Hennes & Mauritz (H&M), Marks and Spencer (M&S), Levi & Strauss Co, Nike Inc., Walmart Stores (Home and ASDA) and now VF Corporation.

900000 800000 700000 Better Cotton Licensed under BCFT Program 600000 BCFT Fund allocation 2012 500000 14% 16% 400000 300000 16% 200000 7% 100000 47% 0 31% 6% 57% 2010 2011 2012

Projected Better Cotton Lint 2012 Licenced Better Cotton Lint India Produced Pakistan Better Cotton Lint China Mali

57% 14% 4%

Brazil

4%

BCFT Fund allocation 2012 16%

Apart from their generous financial contributions to the fund, The BCFTP public funders - ICCO, Rabobank Foundation, the Farmer Support Programme (Solidaridad) and IDH have lent senior resources from their teams to the working groups set-up by the Investors Committee to address both short term and long term challenges for the Program.

India Better Cotton Licensed under BCFT Program 2012 Pakistan

7%

China 14%

6%

Mali

57% 16% 14%

Brazil

47%

57%

31%

4% End Year 2/3 Report 2012 Better Cotton Licensed under BCFT Program 2012

Better Cotton 4% Fast Track Program

Thousand MT

Better Cotton is fast becoming the norm in sustainable cotton standards. A study by Steward RedQueen1 shows that in the last two years, the BCFTP has helped in doubling the volume of sustainable cotton available in the market.

3.1%

900 800 700 600 500 400

1.0%

300

1.4%

1.3%

2009 - 2010

2010 - 2011

1.3%

200 100 0 2008 - 2009

2011 - 2012

% of total global cotton production Better Cotton

CmiACotton

Both Organic & Fairtrade Cotton

Fairtrade Cotton

In 2012, 31 projects, over 163,000 farmers and 675,000 hectares were funded by the BCFTP. These projects in Brazil, Mali, India, Pakistan and China were licensed to grow nearly 700,000 MT of lint.

The Program in alignment with BCI’s geographic priorities has key investment in “BCI Direct Countries” - India, Pakistan and China. Investment strategies in Africa and

2012 Overview of Actual Data Compliance rates Tons of Better Cotton licensed Number of Better Cotton Farmers Number of farmers/workers trained Hectares licensed to grow Better Cotton Number of Projects

The end of year report is structured to give stakeholders an opportunity to understand the progress in sustainable cotton that is possible because of the efforts of the Better Cotton Fast Track Program and the organizations linked with it. Through this report we are able to communicate the results as well as the direction of the Program – from supply creation to linking supply and demand; the BCFTP has evolved vastly since its inception.

In keeping with the developing focus of the program, the 2015 supply creation aim of the BCFTP has recently been revised from 1 million MT lint to 1.5 million MT Lint.

Organic Cotton

2012 – the year that was

other regions are managed in collaboration with strategic partners like, APROCA (West African Cotton Producers Association), ABRAPA (Brazilian Cotton Producers Association) and in 2013, OLAM (Mozambique) All the countries that the BCFTP presently invests in are diverse in their challenges and opportunities. An overview of the results of 2012 gives a glimpse into the environments the BCFTP operates in:

Brazil

China

India

Mali

Pakistan

Global

98%

100%

66%

93%

78%

75%

325,000

32,350

95,032

25,600

217,800

695,782

100

3,500

80,035

20,600

59,000

163,235

375

6,600

110,750

29,500

98,000

245,225

210,000

14,900

127,481

63,000

262,000

677,381

1

4

20

1

5

31

Cost/metric ton licensed (in euros)

3.31

11.97

36.53

17.25

3.76

8.76

Cost/metric ton projected (in euros)

2.92

15.02

19.43

15.77

3.06

7.3

Gin uptake rates

1

Other impact studies conducted by the LEI Wageningen at the household level show that compared to control farmers, Better Cotton farmers in Mali, Pakistan and India show 20% less water use, 67% less pesticide use, more use of organic fertilizer (compost) and 33% less use of commercial fertilizer with an average 20% higher yield compared to control groups2

51%

74%

44%

23%

26%

41%

169,000

24,000

46,000

6,000

59,000

304,000

Steward RedQueen, 2012, IDH sustainable cotton programme and its impact Baseline and quick scan evaluation (2009-2012). Haarlem.

2

Supporting graphs can be found in the section on Impact Studies

0 2010 2010

2011

6000 100000 4000 50000 2000 0 0

2012

2011

2012

2010 2010

2011 2011

2012 2012

Better Cotton Hectares Better Cotton Hectares 900000 800000 900000 Better Cotton Hectares 700000 800000 900000 600000 700000 800000 500000 600000 700000 400000 500000 600000 300000 400000 500000 200000 300000 400000 100000 200000 300000 0 100000 200000 2010 2011 2012 0 100000 2010 2011 2012 0 2010 2011 2012

Better Cotton Production Projected cost efficiency ( EUR/MT) per country

Projected (Ha) Projected (Ha) Projected (Ha) Licenced (Ha) Licenced (Ha) Licenced (Ha)

300000 250000 Better Cotton Training

Projected farmers

250000 300000 200000

Projected Licenced farmers farmers

200000 250000 150000

Projected farmers Licenced farmers Trained farmers

150000 200000 100000

Licenced farmers Trained farmers

100000 150000 50000

Trained farmers

50000 100000 0 2010 2010

2011

2012

2011 2011

2011

2012

2011

2012

Women Farrmers and Workers BCFT Fund allocation 2012 Trained in Better cotton Principles 16% 12000 India 10000 Pakistan 7% 8000 China

6000 6% 4000

Brazil 2011

Better Cotton Production 900000 800000 Better Cotton Licensed under BCFT Program 2012 Projected Global Compliance and Cost efficiency Better Cotton Lint 700000 80 600000 14% Licenced 500000 70 Better Cotton Lint 400000 16% 60 Compliance rate 300000 (%) 5047% Produced 200000 Better Cotton Lint 40 31% 100000 57% 30 0 Cost efficiency (Licenced MT/Euro) 20 2010 2011 2012 10

4%

0 2010

2012

4%

2011

BCFT Fund allocation 2012

10000 12000 8000

7%

India

8000 10000 6000

2000 4000 0 0

2010

2011 2011 2011

2012 2012 2012

Better Cotton Production Better Cotton Production 900000 800000 Better Cotton Production 900000 700000 800000 900000 600000 700000 800000 500000 600000 700000 400000 500000 600000 300000 400000 500000 200000 300000 400000 100000 200000 300000 0 100000 200000 2010 2011 0 100000

Better Cotton Lint Projected Licenced BetterCotton CottonLint Lint Better Licenced

2012

China 57%

Mali Projected (Ha) Brazil Licenced (Ha)

2010 2011 2012 Better Cotton Licensed under BCFT Program 2012

Projected Better Cotton Lint Projected

Better Cotton Lint Licenced Produced BetterCotton CottonLint Lint Better Produced Better Cotton Lint Produced Better Cotton Lint

Pakistan

Better Cotton Hectares

900000 6% 800000 700000 600000 14% 500000 400000 300000 200000 100000 0

4000 6000 2000 2010

2012

16%

6000 8000 4000

2010

2012

2012

Women Farrmers and Workers TrainedFarrmers in Better and cotton Principles Women Workers Trained in Better cotton Principles 12000 Women Farrmers and Workers 12000 10000 Trained in Better cotton Principles

0 2000

Mali

57%

2000 14%0 2010

50.00Projected cost efficiency ( EUR/MT) per country India 50.00 Projected cost efficiency ( EUR/MT) per country 40.00 India Pakistan 50.00 40.00 Pakistan India China 30.00 40.00 China Pakistan Mali 30.00 20.00 Mali China Brazil 30.00 20.00 Brazil Mali projected Global 10.00 20.00 cost line Global Brazilprojected 10.00 0.00 cost line Global projected 10.00 2010 2011 2012 0.00 cost line 2011 2012 0.00 2010 2011

2010

2012

Projected cost efficiency ( EUR/MT) per country

2010

Pakistan Licenced China Better Cotton Lint Mali Produced Brazil Better Cotton Lint Global projected cost line 2010

Better Cotton Training

0 2010

Projected India Better Cotton Lint

0.00

Better Cotton Training 300000

0 50000

900000 50.00 800000 700000 40.00 600000 500000 30.00 400000 300000 20.00 200000 100000 10.00 0

14%

16% 47% Better Cotton Training Better Cotton 300000 250000

57% Fast Track Program

31%End Year Report 2012

4/5

Projected farmers

Brazil Brazil is endowed with a large arable area with regional differences in climate, soil, and natural vegetation. Annually, about 800,000 to 1 million hectares and over 6,800 farms are involved in cotton production (IBGE, 2010). Cotton contributes significantly to Brazil’s agricultural output and foreign exchange earnings. In 2009, the value of cotton production reached $3.5 billion, representing 3 percent of the country’s total agricultural output In 2012, the BCFTP funded ABRAPA (Associação Brasileira dos Produtores de Algodão) in Brazil covering an area of over 210,000 hectares and reaching out to a seemingly small number of 100 farmers. A total of 325.000 MT of lint was licensed as Better Cotton of which 51% was taken up by ginners. BCFTP brand members were able to procure 3100 MT through their supply chain.

Implementing partners in Brazil: ABRAPA

Over 200.000 euros were invested in Brazil through the Fast Track Fund. Nearly 3% of the total fund capacity in 2012. In 2013 no investments were planned due to reformulation of the project and negotiations on self-reliance.

In 2012 the compliance rate was 98%.

Working with ABRAPA in Brazil has shown the necessity of developing a solid business case for producer groups to join the Better Cotton Initiative. While the work with large farmers will be continued as part of ABRAPA’s ABR program, the smallholder project under the BCFTP is being revamped in collaboration with ABRAPA. . BCI is also working on benchmarking the ABR program with the Better Cotton standard.

With larger farm sizes, a 100 better cotton farmers in Brazil produce three times the licensed better cotton in India.

Better Cotton Market Uptake 350000

MT Lint

300000

Licenced Better Cotton

250000 200000

Gin Uptake

150000 100000 50000

Retailer uptake

0 2011

2012

Comparative Analysis of Better Cotton in Brazil 350000 300000

Licenced Better Cotton ( MT Lint )

250000 200000

Number of Better Cotton Farmers

150000 100000

Area licenced to grow Better Cotton ( ha )

50000

Brazilian Better Cotton Farmer in his cotton field; IP: ABRAPA

0 2011

350000 350000 300000 300000 250000 250000 200000 200000 150000 150000 100000 100000 50000 50000 0 0

Cost efficiency and Compliance 120.00 Licenced Better Licenced Better Cotton Cotton Gin Uptake Gin Uptake

100.00 MT Lint

MT MTLint Lint

Better Cotton Market Uptake Better Cotton Market Uptake

2012

Cost efficiency ( euro cost/ MT )

80.00 60.00

Compliance Rate ( % )

40.00 Retailer uptake Retailer uptake

20.00 0.00

2011 2011

2012 2012

2011

2012

Comparative Analysis of Better Cotton in Brazil Comparative Analysis of Better Cotton in Brazil 350000 350000 300000 300000 250000 250000 200000 200000 150000 150000 100000 100000 50000 50000 0 0

Licenced Better Licenced Better Cotton ( MT Lint ) Cotton ( MT Lint ) Number of Better Number of Better Cotton Farmers Cotton Farmers

2011 2011

2012 2012

Area licenced to Area licenced to grow Better Cotton grow Better Cotton ( ha ) ( ha )

Note: Due to the large size of landholdings – farmers in Brazil have increased from 50 to 100 in 2012 but the production and hectares have increased exponentially.

Cost efficiency and Compliance Cost efficiency and Compliance

nt int

120.00 120.00 100.00 100.00 80.00

Better Cotton Fast Track Program Cost efficiency Cost efficiency

End Year Report 2012

6/7

China China currently cultivates about 25%of the total global cotton production, which makes it the largest producer of cotton in the world. Due to its leading textile and garment industry, China is also the largest cotton consumer today. All together China consumes about 42% of the global cotton production and is a net importer of cotton.

2012 was the first year that Better Cotton was licensed and produced in China. The four Better Cotton projects reached out to 3,500 farmers and covered an area of over 15,000 hectares. In total 32,000 MT of lint was licensed as Better Cotton from which 29,000 MT was taken up by ginners. BCFTP brand members procured 900 MT through their supply chain.

390 thousand euros were invested in China projects through the Fast Track Fund-aproximately 5% of the total fund capacity for 2012. With an unbeatable compliance rate of 100% overall, China is one of the three focus countries for BCFTP and BCI.

Despite the country’s potential for cultivating sustainable cotton, procurement by retail members of BCI is a major challenge. The recent distortion of the market by China’s national cotton reserve program has been the biggest challenge for Retail Brands to procure Better Cotton from Chinese suppliers. China’s cotton policy, which will probably result in China holding half (50%) of world cotton stocks, remains the leading driver of world cotton prices and the country has long been at the core of the global cotton market. China’s cotton reserve system is offering a large premium relative to world cotton prices, nearly 80% of the 2012/13 Chinese crop has already been sold to the government.

Coupled with the restricted fiber import options, the access that Chinese mills have to import quota also significantly affects the prices they pay for fiber. With the majority of China’s cotton supply being held by the government, any decisions involving Chinese stocks will arguably have a key effect on global price trends.

BCI is actively seeking collaboration with central and local government (initially by engaging with the Ministry of Agriculture’s, Research Centre for the Rural Economy to develop the China Good Agricultural Practices (GAP) standard). However the road ahead is a little unclear. Developing an understanding of China’s cotton policy and exploring solutions is clearly indispensable to all stakeholders in the cotton supply chain.

“Thanks to the BCI project, we are paid for the medical insurance. More than this, our village was equipped with a first-aid case. We are safer and happy to work with the project.” Amung Kang, in Yuli county, Xinjiang, China Implementing partners in China: Guoxin Lutai Solidaridad (Huafu and Zhongliang)

Field Demonstration training on the field. IP: Solidaridad (Zhongliang)

Better Cotton Uptake

Cost efficiency and Compliance 2012 12.00

Compliance Rate (%)

100%

30.000 MT Lint

Cost efficiency (euro cost/MT)

26.000

20.000 10.000 915

1000 0 Gin uptake GUR

Retailer Uptake RUR

Better Cotton in China 350000

32,350 Licenced Better Cotton ( MT Lint )

300000 250000 200000

15,000

150000 100000 50000 0

3,500

Number of Better Cotton Farmers Area licenced to grow Better Cotton (ha)

2012

Better Cotton Fast Track Program

End Year Report 2012

8/9

India India is second to the largest cotton growing nation in the world. With a low productivity when compared to the global average and an even lower standard of living of farmers and farm workers, the Indian cotton scenario is in need of an immediate makeover and has understandably become a focus country for the BCFTP. In 2012, the BCFTP funded 20 projects in India covering an area of over 120,000 hectares and reaching out to more than 90,000 farmers and workers. A total of 95,000 MT of lint was licensed as Better Cotton of which 46,000 MT was taken up by ginners. BCFTP brand members were able to procure 13,000 MT through their supply chain.

With a 66% compliance rate overall, India has yet to reach its full potential and to this end the Investors Committee of the BCFTP has set up an India Up-scaling Working Group to explore the acceleration of Better Cotton coverage in the country. Reports from implementing partners indicate that challenges in the form of delayed rainfall in some areas and low demand of better cotton in the market this year were common. Another challenge is the fragmented nature of the Indian cotton market which brings in its manifold challenges for linking supply and demand, the same fragmented nature is also manifested in the many project locations for Better Cotton in India.

Over 3 million euros were invested in India through the Fast Track Fund - nearly 40% of the total fund capacity in 2012.

“Now we can discuss matters related to best practices of sustainable cotton cultivation with other women. We also now value the importance of education for our children.�

- Hadani Jayaben Arjanbhai, in Rajkot district, Gujarat, India Implementing partners in India: CottonConnect, AFPRO, ACF, Arvind, WWF, Solidaridad (ASA, Pratibha, MYKAPS, SSM, Agrocel), Trident (Abishek)

States with Better Cotton Projects in India 5% 5%

5%

5%

Madhya Pradesh Orissa

10%

Gujarat 33%

Maharashtra Punjab

14%

Andrha Pradesh Rajasthan Tamil Nadu

24%

States with Better Cotton Projects in India Comparative Analysis of Better Cotton in India 150000 States with Better Cotton Projects in India 5% 5%

5% 5%

5%

5%

100000 10% 50000

5% during anMadhya Pradeshin Gujarat. IP: CottonConnect Better5% Cotton farmers LG meeting Orissa

10%

Gujarat 33%

140 Comparative Analysis of Better Cotton in India 120 150000

50000 60

Cotton Farmers

40 0 20

Compliance AreaRate licensed ( % ) to grow Better Cotton ( ha )

100000 140

Number of Better Cotton Farmers

MT Lint

120 50000 100 0 80 60

Licenced Better Cotton ( MT Lint )

2010

2011

2012

40 20 Cost efficiency and Compliance

Cost efficiency Area(licensed to MT ) euro cost/ grow Better Cotton ( ha ) Compliance Rate ( % )

2010

40 100000 20

Better Cotton Market Uptake

80000 0 2010

2011

2012

2012

Better Cotton Market Uptake

100 80 100000 60 80000 40 60000 20

Cost efficiency ( euro cost/ MT ) Licenced Better Cotton Compliance Rate ( % ) Gin Uptake

40000 0 2010 20000

2011

2012

Retailer uptake

0 2010

Compliance Rate ( % ) Licenced Better Cotton

2010

2012

Better Cotton Market Uptake

Cost efficiency ( euro cost/ MT )

80

2011

120

2012

100

60

T Lint

2011

2012

140

100000 MT Lint

MT Lint

2010

2011

Cost efficiency and Compliance

0 140 120

2010

0

MT Lint MT Lint

Cost efficiency and Compliance

Licenced Better Cotton ( MT Lint ) Cost efficiency ( euro Number of cost/ BetterMT )

100 100000 80

Tamil Nadu Area licensed to 24% grow Better 2011 2012 2010 Cotton ( ha ) Comparative Analysis of Better Cotton in India

150000

2012

MT Lint

Cotton in India 10% Comparative Analysis of Better Orissa Gujarat 150000 Licenced Better Maharashtra 33% Cotton ( MT Lint ) Punjab 100000 14% Number of Better Andrha Pradesh 50000 Cotton Farmers Rajasthan

2011

Punjab Area licensed to Andrha Pradesh grow Better Rajasthan Cotton ( ha ) Tamil Nadu

24% Cost efficiency and Compliance

Andrha Pradesh Rajasthan States with Better Cotton Projects in India Tamil Nadu 24% 5% 5% 5% 5% Madhya Pradesh

0

2010

Maharashtra Punjab

14%

33%

14% 0

Licenced Better Madhya Pradesh Cotton ( MT Lint ) Orissa Number of Better Gujarat Cotton Farmers Maharashtra

Licenced Better Cotton

80000 60000 40000

Better Cotton Fast Track Program

End Year Gin Uptake 10/11 Report 2012

Pakistan Pakistan is the 4th largest cotton producer and consumer in the world. The cotton industry is a vital part of the Pakistani economy and is also the foundation for the textile sector – another integral component of the economy.

820 thousand euros were invested in Pakistan through the Fast Track Fund, equaling 10% of the total fund capacity for that year.

In 2012, the BCFTP supported 60,000 farmers and workers across five projects in Pakistan. These projects covered an area of over 144,000 hectares and a total of 220,000 MT of lint was licensed as Better Cotton. From this volume about 59,000 MT was taken up by ginners and 25,000 MT was procured by partners in the BCFTP.

The BCFT projects in Pakistan had a compliance rate of 78% in 2012, which is slightly lower than the year before.

An ongoing partnership with WWF and strong support from IKEA in two projects make Pakistan a stable and progressing country under the BCFT Program. The challenge here remains the relatively low number of ginning units and the fiber quality which is not suitable for all brand product categories.

Implementing partners in Pakistan: WWF

A learning group of farmers meets to discuss sustainable cotton practices

Better Cotton Market Uptake

Better Cotton Market Uptake 25000

Licenced Better Cotton

MT Lint

25000

Licenced Better Cotton

20000 15000

Gin Uptake

10000

MT Lint

Farmers 20000 in Pakistan thinning on their field - thinning helps in improving plant canopy, fruiting leading to better yield IP: 5000 Retailer uptake WWF Pakistan 15000 Gin Uptake 0

10000

2010

5000

2010

2012

Retailer uptake

0 2010

2010

2012 Comparative Analysis of Better Cotton in Pakistan

Better Cotton Market Uptake

MT Lint

25000

Licenced Better Cotton 20000 Comparative Analysis of Better Cotton in Pakistan 15000 300000 250000 10000 200000 5000 150000 100000 0 50000 2010

2010

2012

0 2010

2011

300000

Licenced Better Cotton ( MT Lint )

250000 200000

Number of Better Cotton Farmers

150000

Gin UptakeBetter Licenced Cotton ( MT Lint )

100000

Number of Better Retailer uptake Cotton Farmers

0

Area licensed to grow Better Cotton (Ha)

50000 2010

Area licensed to grow Better Cotton (Ha)

2011

2012

Cost efficiency and Compliance

2012 100

250000 MT Lint

200000

Licenced Better Cotton ( MT Lint ) Cost efficiency Number of Better ( euro cost/ MT ) Cotton Farmers

100 80 60

150000 100000 40 50000 20 0

0 201020102011 20112012 2012

Area licensed to Compliance grow Better Rate ( % ) Cotton (Ha)

80 MT Lint

300000

Comparative Analysis of Better Cotton in Pakistan Cost efficiency and Compliance

Cost efficiency ( euro cost/ MT )

60 40

Compliance Rate ( % )

20 0

2010

2011

2012

Cost efficiency and Compliance 100 MT Lint

80

Cost efficiency ( euro cost/ MT )

60 40

Compliance Rate ( % )

20 0

2010

2011

2012

Better Cotton Fast Track Program

End Year Report 2012

12/13

Mali After Burkina Faso, Mali is the second largest cotton producing country in Sub-Saharan Africa. Despite its slowly developing economy, the potential for growth in Mali lies in mining and the production of agricultural commodities, livestock, and fish. Recent figures place forty percent of the rural population of Mali as dependent on cotton production, with several hundred thousand people growing cotton on over 200,000 farms.

In 2012 the compliance rate for Mali was 93% and approximately 440,000 euros were invested in Mali through the Fast track fund.

A strong partnership has been established with local partners like CMDT (Compagnie malienne pour le dĂŠveloppement du textile) and and a clear strategy on scaling-up and self-funding has been developed.

In 2012, the BCFTP funded a project in Mali covering an area of over 63.000 hectares and reaching out to more than 20,600 farmers and workers. A total of 25,600 MT of lint was licensed as Better Cotton of which 43% was taken up by ginners. BCFTP brand members were able to procure 1200 MT through their supply chain.

Implementing partners in Mali: Solidaridad - Aproca

Workers gathering on the farm during a Better Cotton field visit.

Better Cotton Market Uptake

Better Cotton Market Uptake

MT Lint

30000

Licenced Better Cotton

25000

MT Lint

30000

Licenced Better Cotton

25000 20000

Gin Uptake

15000

10000 Woman farm worker picking cotton during the harvest in Mali. IP: Solidaridad 20000

5000

Gin Uptake

15000

Retailer uptake

0

10000

2010

5000

2010

2012

Retailer uptake

0 2010

2010

2012

Better Cotton Market Uptake

MT Lint

30000 25000

Comparative Analysis of Better Cotton Growth in Mali

Licenced Better Cotton Comparative Analysis of Better Cotton Growth in Mali

20000 70000 15000 60000 10000 50000 40000 5000 30000 0 20000 10000 2010 0

2010

GinLicenced Uptake Better Cotton ( MT Lint ) Number of Better Retailer uptake Cotton Farmers 2010 2011

2012

70000 60000 50000 40000 30000 20000 10000 0

Licenced Better Cotton ( MT Lint ) Number of Better Cotton Farmers Area licensed to grow Better Cotton ( Ha ) 2010

Area licensed to grow Better Cotton ( Ha )

2011

2012

Cost efficiency and Compliance

2012 100

MT Lint

70000 100 60000 50000 80 40000 60 30000 40 20000 10000 20 0 0 201020102011 20112012 2012

Licenced Better Cotton ( MT Lint ) Cost efficiency Number( of Better euro cost/ MT ) Cotton Farmers Area licensed to Compliance grow Better Rate ( % ) Cotton ( Ha )

80 MT Lint

Comparative Analysis of Better Cotton Growth in Mali Cost efficiency and Compliance

Cost efficiency ( euro cost/ MT )

60 40

Compliance Rate ( % )

20 0

2010

2011

2012

Cost efficiency and Compliance 100 MT Lint

80 60 40 20 0

Cost efficiency ( euro cost/ MT ) Compliance Rate ( % )

Better Cotton Fast Track Program

End Year Report 2012

14/15

Impact Studies3 In order to understand the impact of the work of BCI and BCFTP, comprehensive impact studies were conducted at both the market and the household level. These studies came to some interesting conclusions as outlined below: Market level: In a study conducted in Mali, Pakistan, Brazil and India, Stewart RedQueen has concluded that the combination of BCI, BCFTP and IDH has made a difference in the global cotton market. Furthermore, the BCFTP has been instrumental in the acceleration of mainstreaming Better Cotton as it has encouraged production which has increased significantly in only 2 harvests. In view of the common ambition of the organizations that are part of the BCFTP, this start has been important.

To read more about the study – please visit: http://www.idhsustainabletrade.com/katoen-learning Household level: In two studies conducted by LEI Wageningen in Mali, Pakistan and India on assessing the suitability of BCI data and on comparisons between Better Cotton and control farmers, the results show that not only were the datasets suitably valid but that the project farmers of the program differ significantly from the control farmers in almost all agronomic indicators based on studies conducted in 2011.

India India

200 400 100 400 100 300 0 300 0 Better Cotton Better Cotton Control Farmers 200 200 Better Cotton Better Cotton Control Farmers Farmers Farmers 2011-2012 100 100 Farmers Farmers 2011-2012 2010-2011 2011-2012 0 2010-2011 2011-2012 0 Better Cotton Better Cotton Control Farmers Better Cotton Better Cotton Control Farmers Farmers Farmers 2011-2012 Farmers Farmers 2011-2012 Average Yield (KG LINT/HA)seed cotton/ha) 2010-2011 2011-2012 2010-2011 2011-2012 Average Yield (KG LINT/HA)seed cotton/ha) 3000 3000 2500 Average Yield (KG LINT/HA)seed cotton/ha) 2500 Average Yield (KG LINT/HA)seed cotton/ha) 2000 3000 3000 2000 1500 2500 2500 1500 2000 1000 2000 1000 1500 500 1500 500 1000 0 1000 0 500 500

ACF ACF

0 0

Arvind Arvind

ASA ASA

Better Cotton farmers Better farmers ACF CottonArvind ACF Arvind Better Cotton farmers Better Cotton farmers

Cotton Cotton Connect Connect Control farmers Control farmers ASA Cotton ASA Cotton Connect Connect Control farmers Control farmers

Averageuse useof offertilizer fertilizer(KG/HA) (KG/HA) Average 2000 2000 1500 1500 2000 2000

Average use of fertilizer (KG/HA) Average use of fertilizer (KG/HA)

1000 1000 1500 1500

+160% +160%

500 500 1000 1000

+160% +160%

00 500 500

Organic Organic

0 Better BetterCotton Cotton 0 Organic Organic Farmers Farmers Better Cotton 2010-2011 2010-2011 Better Cotton Farmers Farmers 2010-2011 2010-2011

Commercial Commercial Better BetterCotton Cotton Control Farmers Control Farmers Commercial Farmers Farmers Commercial 2011-2012 2011-2012 Better Cotton 2011-2012 2011-2012 Better Cotton Farmers Farmers 2011-2012 2011-2012

Control Farmers Control Farmers 2011-2012 2011-2012

Mali Mali

Average Yield (KG LINT/HA)

Average Averageuse useof ofpesticide pesticide Mali Mali (KG (KGof ofactive activeingredient ingredientper perhectare) hectare)

800 Average Yield (KG LINT/HA) 800 700 700 600

+20%

600 500

+20%

500 400 400 300 300 200 200 100 100 0 0 Better Cotton Farmers Better Cotton 2010-2011 Farmers 2010-2011

Better Cotton Farmers Better Cotton 2011-2012 Farmers 2011-2012

Control Farmers 2011-2012 Control Farmers 2011-2012

Average Yield (KG LINT/HA)seed cotton/ha) 3000 Average Yield (KG LINT/HA)seed cotton/ha) 3000 2500 2500 2000 2000 1500 3 Steward RedQueen, 2012, IDH sustainable cotton programme and its 1500 1000 impact Baseline and quick scan evaluation (2009-2012). Haarlem.

Waarts, Y., Lan Ge, 2013, Let the numbers speak. Comparison of BCI 1000 500 project farmers and control farmers in India, Mali, and Pakistan, LEI500 0 WageningenUR. The Hague.

ACF Arvind ASA Cotton 0 Connect ACF Arvind ASA Cotton Better Cotton farmers

Connect Control farmers

Better Cotton farmers

Control farmers

0.5 0.5 Average use of pesticide Average use of pesticide (KG of active ingredient per hectare) (KG of active ingredient per hectare) 0.4 0.4 0.5 0.5 0.3 0.3 0.4 0.4 - 67% - 67% 0.2 0.2 0.3 0.3 0.1 - 67% 0.1 - 67% 0.2 0.2 0.0 0.0 0.1 Better Cotton Control Farmers 0.1 Better Cotton Better Cotton Better Cotton Control Farmers Farmers Farmers 2011-2012 Farmers Farmers 2011-2012 0.0 2010-2011 2011-2012 0.0 2010-2011 2011-2012 Better Cotton Better Cotton Control Farmers Better Cotton Better Cotton Control Farmers Farmers Farmers Commercial 2011-2012 Farmers Farmers Pesticides 2011-2012 Botanic Commercial 2010-2011 2011-2012 Botanic 2010-2011 2011-2012 (Incl.

Pesticides Pesticides Endosulfan) Pesticides (Incl. Endosulfan) Commercial Commercial Botanic Pesticides Botanic Pesticides Pesticides (Incl. Endosulfan) Pesticides (Incl. Endosulfan)

}} }

}} }

Lan Ge, Yuca Waarts, 2012, Can the data speak? Assessing the suitability of the BCI dataset for baseline studies in India, Mali, and PakiPakistan stan, LEI-WageningenUR. The Hague.

Pakistan Average water used for irrigation Pakistan Pakistan

Average water used irrigation (M3 of water used perfor hectare) (M3 of water used per hectare) 5000 Average water used for irrigation Average water used for irrigation 5000 (M3 of water used per hectare) - 20% (M3 of water used per hectare) 4000 - 20% 5000 4000 5000 - 20% 3000 - 20% 4000

}

}

Botanic Pesticides

Commercial Pesticides (Incl. Endosulfan)

What next?

Pakistan Average water used for irrigation (M3 of water used per hectare) 5000 - 20%

4000 3000 2000 1000 0 Better Cotton Farmers

Control Farmers

Average use of fertilizer (KG/HA) 600 500

- 33%

400 300 200 100 0 Organic 2011 - 2012 Better Cotton Farmers

Commercial 2011 - 2012 Control Farmers

A key finding of the study is that the documentation of decent work practices currently does not allow for a proper impact analysis. To remedy this lack of information, IDH and BCI are collaborating on a study being conducted by Ergon Associates on the Decent Work component of the Better Cotton standard. The first results look promising in helping BCI develop comprehensive KPIs on decent work.

4

The GUR or Gin uptake rate is defined as the % of Better Cotton produced, that is procured by gins and declared as such in the BCI Traceability System.

As an initiative, the BCFTP has come a long way and this is evident in the direction the Program has taken over the last year. Not only does the BCFTP encourage the creation of Better Cotton but considering the very complex cotton supply chain, the Program also focuses on increasing the demand and uptake of Better Cotton by brands and retailers. More often than not, as with all paradigm shifts, there are teething problems in bringing the many stakeholders in the cotton trade on board with the objectives of the Program but it is clear that the BCFTP needs to fully transition into a market driven model where demand and supply forces interact to be able to facilitate the mainstreaming of Better Cotton as a sustainability standard. The Program needs to evolve beyond the sustainability departments of apparel companies and get entrenched in their operations and commercial business.

In 2011, the gin uptake rate4 of all BCFTP funded projects was 45%, over achieving the target set for the year (25%).

In keeping with setting resolute targets, the target for 2012 was doubled to 50%. The tally till June added up to 41% and the final figures will be available in September.

This means that of all the BC produced by the 33 BCFTP funded projects, 41% was taken up by the gins in the Better Cotton System.

In an effort to encourage the supply chain partners associated with the brands, many regional supply chain meetings were organized by brands and other stakeholders.

By end of the procurement year for 2012, BCFTP brands procured a total of 30,000 MT of lint available at the gin over achieving the original RUR5 target of 15%. The final tally for the RUR from the harvest of 2011 was 34%. For the current harvest year of 2012-2013, brands have a target of 25% and till June 2013, have achieved a 21% uptake through the procurement of about 66,000 MT of lint.

In the coming years, with a shift in focus from supply to demand, brands are expected to set aggressive targets to deliver on their public commitments.

5

The RUR or Retailer uptake rate is the % of Better Cotton available at gin level, which is procured by retailers and is declared as such to the BCFT.

Better Cotton Fast Track Program

End Year Report 2012

16/17

Uptake Uptake of Better of Better Cotton Cotton Lint Lint by ginners by ginners and and BCFT BCFT brands* brands*

Better Cotton Uptake*

Gin Uptake

Countries

RB Uptake

Gin Uptake

2011-2012 Brazil

19,000

MT Lint MT procured Lint procured

by Gins

by Gins in theinyear the year 2012-2013 2012-2013

RB Uptake

BrazilBrazil

2012-2013** 1,200

China

19% 19%

169,000

3,100

24,000

900

India

23,000

9,500

46,000

13,600

Mali

11,000

500

6,000

1,300

ChinaChina IndiaIndia

2% 2%

Mali Mali 15% 15%

Uptake of Better Cotton Lint16,300 by ginners 59,000 and BCFT brands* Pakistan 35,000 25,500

56% 56%

CmiACmiA

8% 8%

Not known Not known

CmiA MT Lint procured by Gins -2012-2013

14,300MT Lint reportedly procured bij RBs 2012-2013 Uptake of Better Cotton Lint by ginners and BCFT brands* Not known 2,500 7,300

RUR 2%

11%

China 41%

45% 35%

19%

MT Lint reportedly procured by RBs in the year 2012-2013

India

Brazil China

21% 22%

Mali ** Update till June, 201356% India 15% Pakistan 2% * All figures are rounded to the nearest hundredth.

MaliColCmiA lected8% from brands and retailers from July June although 15% 56% Pakistan brands’ internal reporting cycles may varyNot depending known on CmiA their systems and processes.

5%

1% Better Cotton Market Uptake Better Cotton Market Uptake 20% 11% 5% 1%

800,000 800,000 MT Lint

19% GUR

66,000

700,0002% 700,000 22% 600,000 600,000

20%

500,000 500,000

2%

MT Lint

MT Lint procured by Gins in the year 2012-2013 Brazil Total 88,000 30,000 305,000

Pakistan Pakistan

39%400,000 400,000

8%

2011-20 201

300,000 300,000

Not known

200,000 200,000

39%

100,000 100,000 0 Better Cotton Market Uptake

MT LintMT Lint

800,000 700,000

Better Cotton Market Uptake

2010-2011

400,000 600,000 300,000 500,000 200,000 400,000 100,000 300,000 0 200,000

2011-2012

Licenced Better Cotton

Gin Uptake

RB uptake

Licenced Better 2010-2011 Cotton

Gin Uptake 2011-2012

RB uptake 2012-2013

100,000 0

0 Gin UptakeRB uptake Gin Uptake RB uptake Licenced Better Licenced Better Cotton Cotton

600,000 800,000 500,000 700,000

In addition to planning a clear strategy and ambitious targets to procure better cotton, some brands are also engaging with their supply chains to build relationships and achieve the brand’s sustainability vision.

2010-20 201

2012-2013

2012-20 201

Supply Chain Initiatives From the current data available, the BCFTP brands have a combined cotton footprint of about 4.7% of the world’s cotton consumption of 23.2 million MT lint whereas, procurement of Better Cotton is a mere .3%. In order to increase the uptake of Better Cotton, BCFTP retail partners have taken steps to start understanding their very complex supply chains and to start engaging beyond their first tier suppliers.

Supply Chain Conferences Shanghai: Better Cotton Supply Chain Conference In July 2012, a Supply Chain conference was organized in Shanghai, China, with the idea of educating suppliers about BCI. The conference was well attended by more than 100 representatives of different suppliers.

“This year, through the collaborative work of the Fast Track Program we have sown seeds of market transformation - with growers, ginners, spinners and fabric mills - taking great strides forward for the Better Cotton Initiative.” – Mark Sumner, Sustainable Raw Materials Specialist, M&S

In addition to the BCI Supply Chain Conference, there have also been regional and country specific initiatives undertaken by retail brands.

Shanghai: Better Cotton Supply Chain Conference

Better Cotton Fast Track Program

End Year Report 2012

18/19

Regional Conferences

H&M LEEP Meet in Bangalore, India

As Supply Chain Manager it is indeed a luxury to be able to interact with several key links of our supply chain at the same point of time. The valuable input from this meeting will affect our planning this season ahead and we will work on ensuring that the right information is trickling down through the chain. As all our cotton will come from sustainable sources by 2020, an open and solution oriented mindset is needed throughout our supply chain, and I was happy to see the participants showing example of both! We take our BC targets most seriously and the meet was an important step towards achieving required results together with our partners.” Marielle Boström Supply chain manager - Jersey H&M Hennes & Mauritz, Pvt. Ltd. (India)

H&M LEEP Meet in Lahore, Pakistan

“As Material Responsible it is a pleasure to interact with several other links of our whole supply chain at the same time this always been a great experience to listen thoughts of whole supply chain concerned and this obviously can help to ensure that realistic information is spreading through the chain, this help us in a great way to achieve our goal for 2020 that all cotton will come from sustainable source, We need to have better cotton and better sustainable life for our upcoming generation “ - Aziz Khurram, R&D Denim and Denim Material responsible H&M Hennes and Mauritz GBC AB

Future Direction In order to successfully achieve market transformation and create impact at scale, it is apparent that much work needs to be done. On the one hand more farmers need to be trained and more Better Cotton produced and on the other, the Program needs to look at innovative business approaches and working with government and supply chain partners to be able to move away from traditional models of Better Cotton implementation to ones that are scalable& self-sustaining in the long-term.

It is clear that there are no umbrella solutions to the challenges that exist across regions and the Program will have to be tailored keeping regional differences at the forefront. National Stakeholder Councils set up by BCI will help understand the indigenous realities and diverse challenges faced by each particular region. This is also a first step to embedding the Better Cotton principles within the agricultural policies of national Governments.

To guarantee that the program is actively working towards capitalizing on the opportunities available in the current global scenario and especially in developing Better Cotton in India, the Investors Committee of the BCFTP has set up two working groups on India Up-Scaling and Self-reliance.

India Up-scaling Working Group The India Up-scaling working group has been set up with a mandate to capitalize on the potential India presents as a cotton producing country. Despite the sizable investment from the BCFTP, the return in terms of output of Better Cotton produced in India is low. The projects themselves are widely scattered and small in size. To support the scaling up of Better Cotton projects in India, there is mutual consensus that the BCFTP has to move away from a project centric approach. The aim of the working group is to explore and recommend models that cost effectively upscale the creation of BC in India.

In finding solutions to this long-term challenge, the work of this group continues well into 2013-2014 Self-reliance Working Group In an effort to help implementing partners take ownership of their self-reliance strategy, the self-reliance working group assesses the long-term strategy of the partners and gives them feedback on how to strengthen their position. Over the course of the year, the group has become increasingly aware of the diverse nature of our partners on the ground and the challenges that are prevalent in the different project regions. Keeping these learnings in mind, the working group is formulating an approach to self-reliance that will include more inputs from the implementing partners before moving forward.

“Without self-reliance of projects, the BCFTP will not reach its ambitions to upscale the number of farmers that produce and sell Better Cotton. Also, it will be less clear how future needs of farmers can be met and how their share in the value chain can be improved.”

Iris van der Velden Region Manager - Asia, Rabobank Foundation

The Mid-stream As the Investors Committee works towards greater selfreliance and scaling up of projects where necessary, another requirement felt is the need to establish and demonstrate a business case for mid-stream players. Against demand signals received from brands, many ginners and spinners are actively collaborating with and investing in the of creation Better Cotton. Understanding the correct incentives for them to augment the supply in a cost effective fashion is probably best understood by creating a platform which will help the supply chain actors communicate, develop shared value, and bring problems to the fore for resolution.

Supply Chain Partners that invest in Better Cotton Supply Chain Partners that invest in Better through BCFTPthe BCFTP Cottonthe through Vaibhav Laxmi Industries, Arvind, Abishek, ZhongliVaibhav Laxmi Industries, Arvind, Abishek, ang, Golden Fields, Huafu, Taichang, Huitong, Zhongliang, Golden Fields, Huafu, Taichang,CMDT, OLAM, Addchance Huitong, CMDT, OLAM, Addchance

Beyond 2015 –the Better Cotton Investment Vehicle The BCFTP is scheduled to end its funding engagement with projects in 2015 and hence the need to envision the path ahead is evident. As part of the BCI Strategic Plan In 2013, a Volume Based Fee will be charged to retailers on their Better Cotton consumption. This Volume Based Fee is proposed to be funneled into an Investment Vehicle which will be run at arm’s length to BCI and will make smart investments for supply creation while covering BCI costs of traceability and credibility. BCI and IDH are partnering in the design of the Investment Vehicle and discussions are on for engaging a consultant to develop the framework and the strategy for this transition.

With a promising start to 2013 and an exciting journey ahead, the Program is well on its way to ensuring that the positive impacts of its efforts reverberate well beyond 2015.

Happy harvest!

Better Cotton Fast Track Program

End Year Report 2012

20/21

Annex 1T Project

Compliance Rate

Better Cotton (Licensed)

Better Cotton Farmers

Cotton Hectares (Licensed)

325,000

100

210,000

Brazil Abrapa (Brazil)

98% China

Solidaridad (Xinjiang - Huafu)

100%

5,150

1,232

2,800

Solidaridad (Xinjiang - Zhongliang)

100%

3,500

137

1,450

Lutai (Xinxiang)

100%

19,450

2,050

8,000

Guoxin (Hebei)

100%

4,250

80

2,650

India Solidaridad (Tamil Nadu - SSM)

85%

2,250

4,700

3,000

Solidaridad (Madhya Pradesh - ASA)

74%

7,500

7,575

8,500

Solidaridad (Gujarat - Agrocel)

79%

3,850

2,000

6,700

Solidaridad (Orissa - Pratibha)

88%

3,200

4,400

4,950

Solidaridad (Karnataka - Mykaps)

86%

500

3,750

3,500

Arvind (Maharashtra)

78%

5,600

2,000

5,850

Arvind (Maharashtra)

94%

8,000

2,800

7,400

CottonConnect (Maharashtra)

96%

5,800

5,350

8,800

CottonConnect (Gujarat)

90%

3,782

2,885

4,181

ACF (Gujarat)

88%

750

1,350

1,200

ACF (Punjab)

96%

2,900

1,700

3,500

ACF (Maharashtra)

95%

1,900

1,175

2,650

ACF(Rajasthan)

85%

2,700

900

3,050

ACF(Andhra Pradesh)

89%

1,600

1,300

1,600

WWF India (Warangel)

90%

8,700

11,200

12,000

WWF India (Maharashtra)

98%

5,300

5,100

8,300

0%

-

-

-

Trident (Punjab)

93%

20,500

11,600

22,800

AFPRO (Maharashtra)

56%

4,100

5,950

10,500

AFPRO (Gujarat)

37%

6,100

4,300

9,000

Solidaridad (Koutiala - Aproca)

93%

25,600

20,600

63,000

WWF Pak (Sindh)

82%

85,500

13,200

100,000

WWF Pak (Punjab - RYK)

77%

38,500

9,600

45,000

WWF Pak (Punjab - Jhang)

14%

4,300

1,200

3,000

WWF Pak (Punjab - Bahawapur)

89%

67,500

19,800

85,000

WWF Pak (Punjab - TTSingh)

95%

22,000

15,500

29,000

695,782

165,000

685,000

WWF India (Punjab)

Mali Pakistan

Global Total

1

75%

Steward RedQueen, 2012, IDH sustainable cotton programme and its impact Baseline and quick scan evaluation (2009-2012). Haarlem.

The BCFTP Investors Committee and Executive Board comprise of organizations that are committed to sustainability. Representatives of these organizations have been working together, through the BCFTP, since 2009 to drive initiatives that address the global challenges of today.

Through this report we also celebrate and appreciate their support to this Program:

BCFT Investor Committee Members* Ebru Gencoglu adidas Philipp Meister adidas Paula Bautil Levi Strauss & Co Manuel Baigorri Levi Strauss & Co Pramod Singh IKEA Pramit Chanda IKEA Harsha Vardan H&M Henrik Lampa H&M Mark Sumner Marks & Spencer Jeff Williams Walmart Stores (Home and ASDA) Steve Hendrix Walmart Stores (Home and ASDA) Eraina Duffy Nike Jane Clarkson Nike Peter Higgins VF Corporation Sean Cady VF Corporation Marian van Weert ICCO Lucian Peppelenbos IDH Anke van Kempen Rabobank International Iris van der Velden Rabobank Foundation Janet Mensink Solidaridad (FSP) Alice Mostert Solidaridad (FSP)

BCFT Executive Board Members* Lise Melvin BCI Henrik Lampa H&M Wim Hart ICCO Joost Oorthuizen IDH Simon Colbeck Marks & Spencer Gilles Boumeester Rabobank International Nico Roozen Solidaridad

Prepared by: Jaskiran Warrik, IDH

With inputs from: Lucian Peppelenbos, IDH Anita Chester, IDH Viola van Waaij, IDH Brigitte Mugiraneza, IDH Roy van Daatselar, IDH William Wong, IDH Bruce Haase, IDH Dave Boselie, IDH Special thanks to the BCI team for their support

* BCFT IC and EB members at the time of printing (2013)

Better Cotton Fast Track Program

End Year Report 2012

23/23 22/23

Better Cotton Fast Track Program Members:

Senior Program Manager Cotton: Anita Chester E: chester@idhsustainabletrade.com T: +91 981 037 4300 I: www. idhsustainabletrade.com/cotton Better Cotton Initiative: E: mebership@bettercotton.org I: www.bettercotton.org

powered by

“Cotton is not our asset – farmers are” Teressa Buana has been working with cotton since the age of 15. Today aged 45 she is married with 5 daughters and 5 sons. Her husband Joao Henrigues is a small cotton producer from the village of Namige, Ribaue district, Nampula province in Mozambique, Southern Africa. He owns two hectares of land yielding an average of 400-500kg/hectare. The land they own is rain-fed and he has been growing cotton since the age of 12. Both husband and wife joined BCI in 2013 and hope to make their life better by increasing the yield per hectare which they believe will result in a better profit. Not being literate, they are glad to learn through pictures and diagrams with the rest of their learning group. They are especially happy to have a platform of likeminded farmers to share ideas and knowledge.

- BCFTP project in Mozambique started in 2012-2013 with OLAM

July 2013