Where farmer and fashion designer meet

The report analyses the experience, impact and challenges of managing an integrating organic textile value chain based on two different models, one led by a business and the other by an NGO. The study aims to also review whether improvements in livelihoods and productivity achieved in organic cotton value chain integration can be replicated to conventional cotton cultivation.

Main findings

• Organic cotton integrated value chains are more suited for improving livelihoods of smallholder farmers compared to conventional cotton
• Yields may decrease during the conversion phase to organic cotton, however, organic farmers' income are higher than conventional farmers after the third year, mainly due to lower input costs
• Additional costs of organic / fair trade cotton should be absorbed across the full value chain and not just to the cost of raw materials
• The author identifies two possible approaches: the 'market to farmer' approach and the 'farmer to market' approach. The document advocates combining both and establishing cooperation between farmers and private actors from the beginning.

Intervention description

The two approaches analysed involved integration of organic textile value chain to different extents. In the NGO led initiatives, the NGO acts as a facilitator along with other actors in the value chain. The intervention involves the formation of farmer cooperatives, certification of cotton, premium rates for organic cotton above the market prices and extension services for accessing inputs and technical advice.

Evidence methodology

• The review uses primary and secondary research. Key data sources include project documents, sector / market information, project studies and evaluation reports and interviews.
• Quantitative information of cotton market prices vs organic cotton, share of cotton income in farmers' total income is also analysed to understand the impact of integrated organic textile value chain on farmer livelihoods

Useful for:

Value chain interventions, organic and fair trade value chain programmes.