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……..  

Trader

Cotton Supply Chain

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  

LOGO

 SWITCH  Asia-­‐SPRING    Project  

 Sustainable  CoNon  Produc9on  in  Pakistan’s  Ginning  SMEs    

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.  

Target Group

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.

BCI Retailer and Brand Members

18

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.