2015-7-2 Better Cotton Initiative Promote Sustainable
Development in Cotton Supply Chain BCI China Country Manager Sherry
Wu
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1 figure represents 100 million people 1996: 5.6 billion
Source: IMF More People 2016:7.2 billion Source: IMF 2
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World GDP Per Capita Economic Growth Outpace Population Growth
$8,264 Source: IMF $10,422 3
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At the same time, Sustainability issues related to Social,
Economic and Environmental development are facing more and more
challenges. Sustainability and Traceability becomes more and more
important to Brands/Retailers and Consumers. 4
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Global Cotton Supply and Demand Balance Sheet Million
MT2012/132013/142014/15 June 2014/15 July
BeginningStocks16.019.621.621.9 Production26.825.825.225.3
Supply42.845.446.847.2 Consumption23.223.624.424.2 Ending
Stocks19.621.922.423.0 Stock/Use Ratio84.3%92.7%91.5%94.9% Source:
USDA 5
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China Cotton Supply and Demand Balance Sheet Million
MT2012/132013/142014/15 June 2014/15 July Beginning Stocks
6.811.013.113.3 Production7.67.06.4 Import4.42.91.7
Supply18.820.921.321.5 Consumption7.87.58.17.9 Ending
Stocks11.013.313.213.6 Stock/Use Ratio140.0%177.0%164.0%170.3%
Source: USDA 6
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SWOT Analysis of Cotton Supply Chain In China Strength 1.
Complete cotton supply chain 2. Advanced cotton textile machinaries
3. Complete cotton product categories, has competitive advantage in
middle- to-high end products. Weakness 1. Increasing production
cost 2. Big price gap between imported cotton and domestic Chinese
cotton 3. Continuous appreciation of RMB 4. Cotton textile order
transfer to other countries Opportunities 1. Increased population
and higher consumption in textile products. 2. New policy of cotton
sussidies 3. Transfe of the industry and new market development
Challenges 1. Increasing pressure on environment protection 2.
Increasing requirments from brands/retailers on sustainability and
traceability 3. Collaboration of the entire supply chain on
innovation 7
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Why Better Cotton? Sustainability Traceability Facilitate
collaboration of the cotton supply chain for innovation 8
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Better Cotton 6 Production Principles Use water efficiently and
care for the availability of water Care for the health of the soil
Conserve nature habitats Care for and preserve the quality of the
fibre Promote Decent Works Minimize the harmful impact of crop
protection practices 9
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10 100% BC Bale Products with associated BCCU (Better Cotton
Claim Units) BCI membership not required Ginner Monitoring
Guidelines SEGREGATION MASS-BALANCE ADMINISTRATIVE BCI membership
not required Retailer clients monitoring requirements Registered
BCI membership required Membership Code of Practice Trader Chain of
Custody Guidelines Membership Code of Practice BCI membership
required 100% Seed BC Farmer Better Cotton Tracer Better Cotton
Chain of Custody 10
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Better Cotton Supply Chain Event 11
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2015-7-2 http://bettercotton.org
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Better Cotton Tour 13
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BCI China Wechat Message Code 14
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15 BCI Brands/Retailers Member
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16 Brands/RetailersPublic Statements Targeting 100% Sustainable
Cotton by 2015, among which most are Better Cotton 50% of cotton
will be sustainable by 2020, most are Better Cotton 100% of cotton
will be sustainable by 2020, most are Better Cotton 100%of cotton
will be sustainable by 2020, most are Better Cotton 100%of cotton
will be sustainable by 2020, most are Better Cotton BCI
Brands/Retailers Member Public Statements
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17 * BCI China Members(Part)
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WHERE DOES BETTER COTTON GROW? CMIA Agreement 18
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CountryStatus Number of Better Cotton Farmers Better Cotton
Acreage(Ha) Better Cotton Lint(MT) ChinaDirect15,00065,000 150,000
IndiaDirect251,000461,500 391,000
PakistanDirect122,000412,400358,000
CmiA*Benchmarking460,000350,000180,000 Mali Strategic
Partnership47,100154,70063,400 BrazilBenchmarking214295,000474,800
MozambiqueStrategic Partnership100,00063,33110,000 TurkdyStrategic
Partnership60014,45027,400 KenyaStrategic Partnership67511,000150
SenegalStrategic Partnership3,7092,3001,405 TajikistanStrategic
Partnership3409,0008,400 AustraliaBenchmarking2127,40059,300
USAPilot Project411055010,520 2014 Global
DataPrediction1,000,0001,876,6001,734,000 2013 Global
DataActual762,9811,551,5001,070,000 2014 Global Better Cotton
Supply(Projection)
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2014 Better Cotton Projects In China Addchance SH Guoxin LF and
SH Huitong Nongxi SH Luthai LF Jintian LF Solidaridad Huafu LF
Cotton Connect SH Solidaridad Zhongliang LF Taichang LF XPCC No.5
LF Solidaridad VF SH and LF 20
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21 * Summary Better Cotton is not only cotton but also 1. A
mainstream cotton commodity which is sustainable and traceable
while all other properties remain the same as traditional cotton. A
major choice of many international brands/retailers on raw
materials. 2. A solution for collaboration of the entire cotton
supply chain for innovation. A platform to integrate resources and
to provide business/learning opportunities to multistakeholders of
the cotton supply chain. 3. A progressive system to promote
equlity, transparency, inclusive and innovation. Encourage
multistakeholders to make collective efforts towards
sustainablity.
