Sustainable Cotton Production in Pakistan‘s Cotton Ginning SMEs
Asad Imran Senior Manager, Sustainable Agriculture Programme WWF-Pakistan
WWF IN SHORT
WWF is in over 100 countries, on 5 con9nents
+100
WWF was founded In 1961
1961
WWF has over 5,000 staff worldwide
+5000
WWF has over 5 million supporters
+5M
The Market Transforma9on Ini9a9ve is WWF’s global ini9a9ve,
created to address the adverse impacts of markets and
commodi9es on globally cri9cal and significant ecosystems. WWF
engages with companies, their supply chains and investors, to
promote changes in the way global commodi9es are produced,
consumed and financed. These commodi9es include palm oil,
9mber, pulp and paper, biofuels, coNon, sugarcane, tea, coffee,
marine and aquaculture fisheries
WWF-Sustainable Production & Consumption
Cotton Production • 4th largest producer of coNon,12-‐14 Million bales
Cotton Exports • 3rd largest exporter of raw coNon • Largest exporter of coNon yarn
Cotton Industry • 400 tex9le mills and 1,000 ginneries
Share in the Economy • 40% of Pakistan’s total labour force and nearly 60% of exports
Pakistan & CoNon at a glance……..
Challenges: Environmental Footprint of Cotton Production;
CoNon Produc9on
Excessive Use of Pes9cides
Inefficient Use of chemical Fer9lizers
Excessive use of Freshwater
CoNon Ginning
High Energy Consump9on
Inefficient Produc9on Processing
Air & Solid Waste Pollu9on
Tex9le Processing
High Energy Consump9on
Inefficient Produc9on Processing
Hazardous Waste
Facts & Figures
Overall Objective
• By 2040, sustainable produc9on and consump9on in the coNon market worldwide predominates as best prac9ce, resul9ng in increased environmental sustainability and poverty reduc9on.
Specific Objective
• By 2015, at least 500 coNon gin SMEs in Pakistan recognise the benefits of sustainable coNon produc9on and consump9on and 40% of these commit to more sustainable produc9on prac9ces, in line with agreed beNer ginning prac9ce guidelines, and supported by the procurement prac9ces of European retailers.
Core Areas of Action
• Improving the capacity of gins will enable the movement of BeNer CoNon along the supply chain and increase the supply of more sustainable coNon to retailers
BeNer CoNon Sourcing and Tracking
• Process efficiency,( Produc9vity & Quality) • Energy efficiency • Waste management
Ginning Efficiency
• The BeNer CoNon system contains measures to ensure Decent Work at the farm level; this Ac9on will extend considera9ons of Decent Work standards to the gin level.
Decent Work
Action Strategy Step
1
• Work with 30 gins to demonstrate more sustainable ginning prac9ces (and business benefits) and to increase supply of BeNer CoNon to European markets
Step 2
• Develop BeNer Ginning Prac9ce Guidelines, based on the experience of the 30 gins, to be endorsed by the Pakistan CoNon Ginning Associa9on (PCGA)
Step 3
• Build the capacity of 200 gins and key suppor9ng ins9tu9ons to adopt and support the adop9on of BeNer Ginning Prac9ces
Step 4
• Promote the BeNer Ginning Prac9ces Guidelines among a further 300 gins (PCGA members) and other coNon producing regions
Step 5
• Encourage EU retailers to procure BeNer CoNon, and strengthen their links with Pakistani gins
Sustainable Cotton Production for Sustainable Development & Poverty Alleviation
• The Better Cotton model as the mainstream solution for sustainability in the cotton sector globally. • Farmers who produce Better Cotton commit to achieving principles which support poverty alleviation and/or environmental protection. • By cutting the costs and reducing ‘inputs’ (agrochemicals and water), growing Better Cotton leaves farmers with greater profit. • Better soil quality and reduced water use from growing Better Cotton allows for growth of food crops.
The Better Cotton System: Production Principles
1. Crop Protec9on
2. Water
3. Soil
4. Habitat
5. Fibre Quality
6. Decent Work
Be%er Co%on exists to make global co%on produc8on be%er for the people who produce it, for the environment it grows in, and be%er for the sector’s future.
An agricultural management system:
BeNer CoNon System
6 Principles
44 Criteria
8 Indicators
Training
farmers and
verifying
prac9ces
Physical
segrega9on
of BeNer
CoNon (to
ginner level)
Enabling
supply chain
uptake
Brand
demand as
Driver
Better Cotton
Supply Push; Farmers’ Training & Certification
Verifica9on &
Cer9fica9on
Training & Capacity Building
Monitoring & Technical
Backstopping
Ins9tu9onaliza9on /Farmers
Organiza9ons
Demand Pull; Corporate Commitments;
• WWF is working with industry partners like IKEA, Levi’s, H&M, Adidas and Marks & Spencer – all BCI members – to increase both market demand and produc9on.
74% of co%on will be more sustainable by 2020
100% of co%on will be more sustainable by 2020
100% of co%on will be more sustainable by 2015
50% of co%on will be more sustainable by 2020
100% of co%on will be more sustainable by 2018
100% of co%on will be more sustainable by 2020
Better Cotton is supported by Global Brands & Retailers
Sustainable Cotton Production
More than 100,000 smallholder Farmers applying BeNer CoNon System
More than 350,000 hectares under BeNer coNon
49% saving in fer9lizer use, 35% in irriga9on water and 46% in synthe9c pes9cides
More than 10,000 rural workers benefit from compliance to BCI Decent Work
More than 100,000MT of BeNer CoNon Lint produced to meet the demands of global Brands
Strategy for Inclusive Business and Rural Sourcing
• Promo9on of BeNer CoNon Procurement by Ginners to support more sustainable produc9on of coNon, (thereby reducing the nega9ve environmental and socioeconomic impacts arising from unsustainable coNon cul9va9on)
• Demonstra9ng the importance of sustainable coNon produc9on for their business to ginners;
• Developing and encouraging adop9on of more efficient and sustainable prac9ces.
• Developing ginners‘ links to both Better Cotton farmers and procurers;
Better Ginning Practices
Sustainable Solu9ons pertaining to; • Produc9on Management • Mechanical Efficiency & Fiber Quality • Energy Efficiency • Waste management • House Keeping & working Environment • Occupa9onal Safety & Health
Develop Better Cotton Supply Chain
• Provision of information on Better Cotton and Better Cotton farmers to ginners
• Develop system for efficient implementation of the supply chain for Better Cotton tracking
• Establish and promote implementation of cotton quality assurance mechanisms
Outreach to engage Local Supply Chain actors & supporting institutions • Promote linkages between actors
engaged in Better Cotton supply chain( Farmers, ginners, spinners, textile & retailers
• Build the capacities of institutions, organizations and businesses along the value chain
• Develop links between ginners and financial institutions to reduce financial barriers to larger scale equipment upgrades, which enhance sustainable cotton production
Market Demand; Support EU retailers to procure Better Cotton and link with ginners in Pakistan
• Support BCI companies to link up their supply chain players to secure Better Cotton
• Motivating European retailers and suppliers to stimulate demand
• Develop and use communication tools to highlight benefits of and promote market transformation towards Better Cotton
During 2014-‐2015, 362583 MT of BeNer CoNon was procured by SPRING ginners to produce 116027 MT of Lint. Consequently 682512 bales of BeNer CoNon were produced for local suppliers of interna9onal brands and retailers from these ginners
A shift in policy-making norms towards sustainability for the cotton sector, by improving awareness about the economic, social and environmental benefits of sustainable cotton production
• Enabling Policy Environment: Development of BeNer Ginning Prac9ces (BGPs) guidelines in collabora9on with representa9ves from the ginning industry and government, and endorsed by the Pakistan CoNon Ginning Associa9on (PCGA)
Results & Impacts Technical Impacts
• Target gins have the technical capacity to adopt more sustainable cotton ginning practices and increasing the supply of Better Cotton to European Markets
• Supply chain actors and supporting institutions have the capacity in place to support sustainable cotton production & consumption beyond project life
• Improved efficiency: Reduced environmental cost of cotton production and consumption
• Capacity building of target SMEs, supply chain actors & supporting institutions.
Economic Impacts • Reduced energy costs, increased GOT, improved
environmental efficiency through waste management and better quality cotton (less contamination) which sells at a higher price.
• Benefits to the retailers and industry: Increased availability of sustainably produced, better quality cotton to the retailers
• Increased demand for Better Cotton Production at farm level
• Sustainability of cotton production in Pakistan through improved access to international markets and competitiveness
Environmental Impacts • Reducing the environmental
footprint of cotton production at farm through reduced use of pesticides, synthetic fertilizers & efficient use of fresh water resources.
• Reduction of dust & noise pollution at 500 ginning SMEs as well improving their cotton gin waste management practices.
Social Impacts The Project is working to ensure better protection
of labour rights, improved working conditions and positive impact on the livelihoods of the workers and their families;
More than 3000 workers trained on occupa4onal health & safety &
use of personal protec4ve equipment (PPEs). Ginners are now
convinced that a safe & happy worker is more produc4ve &
confident as compared to the workers working in poor condi4ons
fearing damage to their health and safety.