1. Knowledge sharing along international supply-chains Threads workshop St. Gallen 25.- 28.04.2006

2. www.helvetas.ch 2 Structure of presentation 1.Crash course: the textile chain 2.Knowledge sharing: conventional textile chain 3.Knowledge sharing: organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

3. www.helvetas.ch 3 The textile chain 1.Crash course: the textile chain 2.Challenges for knowledge sharing within the conventional textile chain 3.Challenges for knowledge sharing within the organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

4. www.helvetas.ch 4 Step 1 Fibre production

5. www.helvetas.ch 5 Step 1 Fibre production

6. www.helvetas.ch 6 Step 2 Ginning and baling

7. www.helvetas.ch 7 Step 3 Spinning

8. www.helvetas.ch 8 Step 4 Knitting

9. www.helvetas.ch 9 Step 5 Finishing

10. www.helvetas.ch 10 Step 5 Finishing Photo: Maik Pflaum, Clean Clothes Campaign

11. www.helvetas.ch 11 2. Knowledge sharing:conventional textile chain 1.Crash course: the textile chain 2.Knowledge sharing: conventional textile chain 3.Knowledge sharing: organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

12. www.helvetas.ch 12 Graph of knowledge flows Fibre productionGinningSpinningKnittingFinishing Fibre quality Yarn quality Fabric quality price,quantity,timing Price, quantity,timing

13. www.helvetas.ch 13 Problems of conventional textile chains Low production depth = meaning long, complex supply chain & little knowledge about entire product Extreme frequent change of supply chain partners Short product cycles, but...................long anticipatory planning of fashion seasons Valuable knowledge may be simple to „steal“: - logistic details, e.g. specific supplier or - technical details, e.g. specific blend High fragmentization of supply chain Broad range of stakeholders: social, environmental, fair trade, anti-child-labour, etc.

14. www.helvetas.ch 14 Conclusions for conventional textile chains For Business as usual up to now: NO real need for knowledge exchange Business relation boiled down to exchange of - few technical parameters - prices and delivery conditions Knowledge about origin of supplies NOT existing Knowledge about environmental and social impacts NOT existing

15. www.helvetas.ch 15 3. Knowledge sharing: organic textile chain 1.Crash course: the textile chain 2.Knowledge sharing: conventional textile chain 3.Knowledge sharing: organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

16. www.helvetas.ch 16 Organic textile chain – so much better ? Valuable knowledge: - production technologies - certification requirements - organic markets and related supply-chains Certification agencies and especially consultants try to avoid, that their partners gain knowledge Certification agencies try to horrify partners and producers with the huge difficulties of certification according to § EU Council Directive 2092/93

17. www.helvetas.ch 17 Conclusions for organic textile chains Few actors Intransparency Pig cycles Especially large companies from mass markets are afraid of costs No knowledge sharing – everybody invents the wheel Slow growth of market

18. www.helvetas.ch 18 4. Helvetas approach 1.Crash course: the textile chain 2.Knowledge sharing: conventional textile chain 3.Knowledge sharing: organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

19. www.helvetas.ch 19 Helvetas organic cotton projects in West Africa Senegal since 2004: 128 producers 13 ha - 5 tons Mali since 2002: 1748 producers 740 ha – 160 tons Burkina F. since 2003: 663 producers 322 ha – 60 tons

20. www.helvetas.ch 20 Helvetas organic cotton projects in Kyrgyzstan Kyrgyzstan since 2003: 225 producers 98 ha – 60 tons

21. www.helvetas.ch 21 The relevance of the partnership approach MigrosSwitcher CMDT Associations of organic farmers financial Assistance Technical AssistanceMaterial flow Organic cotton farmers Compagnie malienne des textiles (CMDT) organic supply-chain International buyers Local consultants and research institutions Consulting contracts Local processing Certification Organisational assistance and networking Promotion and knowledge management Buyers and promoters of organic & fair trade products Reinhart Purchase agreement Purchase contract Delivery contract Production contract « Mobiom » Umbrella organisation for farmers Certification FLO Certification BIO

22. www.helvetas.ch 22 Interim status of the 5% target Swiss material flow of cotton in 2003 (imports in tons) Raw Cotton19493 Cotton Yarn and yarn mix4147 Fabrics6608 Textiles and clothing22344 Cosmetic cotton? Total 52592 Target 2007: 5% of cotton material flow to be organic cotton ca. 2700 tons of organic cotton are required Status: ca. 1250 tons of organic cotton are used. That represents 2,38% of the Swiss material flow

23. www.helvetas.ch 23 Hundreds of our partners are „hungry“ to help

24. www.helvetas.ch 24 Stakeholder achievement: World map of organic cotton projects with profiles

25. www.helvetas.ch 25 Stakeholder achievement Regular joint newsletter, Quarterly electronic edition for all stakeholders: Companies, Organic cotton projects NGOs, Comsumer organizations, Development cooperation agencies http://www.organiccottoneurope.net/newsletter.htm Contribution of members: Articles, sometimes translated Ideas for further issues Avoid info fragmentization Respect need for visibility Cover all important issues

26. www.helvetas.ch 26 5. Components of success & Lessons learnt 1.Crash course: the textile chain 2.Challenges for knowledge sharing within the conventional textile chain 3.Challenges for knowledge sharing within the organic textile chain 4.Helvetas approach and achievements 5.Components of success & Lessons learnt 6.Further potential

27. www.helvetas.ch 27 Knowledge sharing approach: Partners and stakeholders 1.Joint declaration ensures that all parties agree that problems in conventional cotton production should be addressed and that organic is a solution 2.Setting of national targets Provides orientation and practical indicator -> thereby giving planning certainty for private sector and farmers to join 3.Define partners, stakeholders and critical knowledge 4.Take partnership seriously Transparency and reliability as basis for trust – joint project visits and partner round-tables 5.Alliances of motivated stakeholders Find joint platforms and activities for communication

28. www.helvetas.ch 28 Lessons learnt 1.No rigid long-term contracts, but agreements, that are adapted in round- table discussions of involved partners 2.GOs & NGOs should avoid involving in the supply-chain 3.Try to avoid split of stakeholders, individual targets of organisation and businesses should be respected – strive for overarching goals and synergies rather than differentiations 4.Joint events, project visits to understand the mutual achievements and idea

29. www.helvetas.ch 29 6. Further potential 1.Crash course: the textile chain 2.Challenges for knowledge sharing within the conventional textile chain 3.Challenges for knowledge sharing within the organic textile chain 4.Helvetas approach 5.Components of success & Lessons learnt 6.Further potential

30. www.helvetas.ch 30 Not yet reached all targets 1.No joint Website 2.No real CoP 3.No joint exchange of problems

31. www.helvetas.ch 31 Measures that plug together – ALL stakeholders can be involved 1.Setting of corporate targets - % of organic cotton of entire cotton material flow 2.Alliances of stakeholders 3.Expansion of market offers from cotton producing countries 4.Alliances with other commodity sectors 5.Pursuing national targets - % of organic cotton of entire cotton material flow

32. www.helvetas.ch 32 ALL stakeholders can be involved A lot of space for new ways.....

33. www.helvetas.ch 33 Backup

34. www.helvetas.ch 34 Non-monetary benefits of organic cotton 1.Occupational health: No handling of hazardous agrochemicals 2.Increase of soil fertility 3.Access to education programmes (production technology, alphabetisation, child labour,) 4.Risk minimization via diversification of the crop rotation 5.Access to micro-credits and equipment 6.Exchange of experiences within the producers associations 7.Access for women farmers to organically certified plots.

35. www.helvetas.ch 35 Monetary benefits of organic cotton 1.Bio-premium 2.Fair-trade premium 3.Potential to increase yield while reducing input costs (achieved by experienced farmers – average yield still lower than conventional yields, thus demand for premium price is still there) 4.Further bio-products and income from crop rotation (Shea-butter, sesame, etc.) 5.Potential for added value generation within the production country (yarn processing, handicraft products ) 6.Emission certificates

36. www.helvetas.ch 36 Take-aways (Discussion) Network should know its expiry date – exit strategy Network created for a purpose has life-span - depends on purpose – evolvement Goals to be clearly specified