Organic Cotton Farming in South Africa: business case development and demonstration pilots: quick guide

What we do

The purpose of the South African Organic Cotton Pilot Project is to facilitate the development of commercial-scale organic cotton farming in South Africa by 2010. A number of organic cotton growing trial sites have been established on both commercial and small-scale farms to assess the viability of commercially producing organic cotton in South Africa, create a learning experience for all partners involved in the project on how to grow organic cotton in a viable and sustainable way and establish a value chain for the production, marketing and retailing of organic cotton in South Africa.
Project partners include:

• ComMark as a funding partner to the project.
• Organic Exchange who, as a non-profit organisation committed to expanding organic agriculture, with a specific focus on increasing the production and use of organically grown fibres such as cotton, brings business and technical expertise to the project.
• Woolworths South Africa, who brings market, retail and value chain expertise to the project and has agreed to buy 100% of the organic cotton harvested at the end of May 2008 from these pilot fields to turn into a range of organic T-shirts which will be launched in their shops in November 2008, together with their business (and value chain) partners - Monviso, Frame Spinning and Frame Knitting.

Organic Exchange has been working for over three years with Woolworths South Africa in the development and expansion plans for its organic cotton programme. Woolworths is currently sourcing organic cotton from India and Turkey. As a part of their expansion plans for organic, they have announced that they would like to have 50% of their organic cotton coming from the region.

• Both commercial (conventional) cotton farmers and a number of small-scale farmers (mainly organic food growers) in areas conducive to organic cotton production as a part of their rotation crop strategy who conduct the demonstrations/pilots for organic cotton on allocated lots of land.
• Cotton South Africa, who provides testing, quality management and farmer training expertise; and
• Agricultural Research Council (ARC), who carries out research around the results from the trials conducted on the research plots.

However, without having a basic business analysis on the conversion and production costs associated with organic production systems, conventional cotton producers do not have the ability to make informed choices to enter into the market. Also, without this information, Woolworths South Africa (and other potential market clients) do not have the ability to develop long-term strategic plans for a planned expansion that could include regionally grown organic cotton.
Since there is a strong need to identify key barriers to the conversion of existing conventional cotton fields to organic, this project therefore also determines current cotton production systems in selected areas of South Africa, with an analysis of the steps necessary to become certified organic farmers, and a review of costs associated with the transition (soil fertility issues, certification, internal control systems, etc.) as well as continued organic cotton production.
This project therefore consists of a multifaceted approach to ‘jump-start' organic cotton production in South Africa and has the following components.

• A collaborative programme with Cotton SA and ARC LNR to conduct organic trials and demonstrations in a number of different locations in South Africa.
• Compilation and analysis of data from all 2007 to 2008 demonstrations and pilots to be able to initiate expanded programmes in applicable areas - evaluations from the 2007 planting (November) / 2008 harvest (end-May 2008) would be the basis for determining the pilot / demonstration plots for the 2008 planting cycle.
• Review and development of other potential trials for organic cotton in areas where organic food crops are being grown to expand organic crop rotation options.
• Incorporation of best management practices into training and educational materials.

All components of this project have been designed and are implemented in such a way as to build capacity within the region.

Why this intervention

Certified organic cotton is not currently being grown in South Africa. However, South African farmers and producer groups are in the position to become strategic suppliers to apparel manufacturers and brands and to secure long-term contracts for organic fibre and food crops.
Interest in developing regionally based supply chains for the local markets and for brands and retailers who are interested in connecting to farmers in South Africa and the continued demand for organic cotton provides an opportunity to establish a long-term market driven solution.
Other benefits include greater bio-diversity with the addition of rotation crops and more sources for organic food crops.

What we achieve

Initial work on the project started in 2007 and includes the following approach and components:

• Evaluation of proposed pilot projects.
• Conducting a knowledge audit and gap analysis (farmers, soil, pest management, extension, management capacity).
• Preparation by consultants of a training plan.
• Selection of pilot farmers.
• Analysis of market opportunities in South Africa for cotton and system crops.
• Evaluation of business models (contract, co-operative, joint shareholding company, relationships with ginning and supply chains).
• Preparation and implementation of certification and Internal Control Systems.
• Development of relationships with research structures and engaging researching in the project process.

A report of our initial findings on the viability and sustainability of organic cotton production will be available towards the end of 2008 once all data from the organic cotton pilot and demonstration plots following the harvest towards end-May 2008 have been analysed.

How is this sustainable

Conducting demonstration and pilot programmes for organic cotton production will lead to the dissemination and implementation of best practices for conventional cotton farmers that want to adopt organic production systems / practices (Issues like soil fertility and pest management practices have cross-over potential for influencing IPM and conventional practices. IPM programmes are also able to provide valuable lessons for organic systems).
Capacity building and leadership development within the region are also accomplished with the distribution and training component of this project. The implementation of this project will therefore leave in place educational tools that can be updated and made available to other projects.
Most importantly, farmers that are successful in growing organic cotton will be able to participate in the rapidly growing fibre market, and also with other rotation crops that can be utilised for their own food security, or other cash markets.

Who we work with

Organic Exchange

Organic Exchange is a non-profit, charitable organisation whose mission is to catalyse global markets to expand organic fibre agriculture. Organic Exchange endeavours to shift the market to where the promise of organic farming can be realised - a market where farmers are known and celebrated, where great design, innovative products and stewardship of the land go hand in hand, where healthy and fair returns are shared by everyone in the chain - bringing responsible, sustainable products to consumers everywhere.