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Better Cotton Initiative
Promote Sustainable Development in
Cotton Supply Chain
BCI China Country Manager Sherry Wu
2015/7/21
More People
1 figure represents 100 million people
1996: 5.6 billion
Source: IMF
Source: IMF
2016:7.2 billion
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Economic Growth Outpace Population Growth
World GDP Per Capita
Source: IMF
$10,422
$8,264
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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.
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Global Cotton Supply and Demand Balance Sheet
Million MT
2012/13
2013/14
2014/15
June
2014/15
July
BeginningStocks
16.0
19.6
21.6
21.9
Production
26.8
25.8
25.2
25.3
Supply
42.8
45.4
46.8
47.2
Consumption
23.2
23.6
24.4
24.2
Ending Stocks
19.6
21.9
22.4
23.0
Stock/Use Ratio
84.3%
92.7%
91.5%
94.9%
Source: USDA
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China Cotton Supply and Demand Balance Sheet
Million MT
2012/13
2013/14
2014/15
June
2014/15
July
Beginning
Stocks
6.8
11.0
13.1
13.3
Production
7.6
7.0
6.4
6.4
Import
4.4
2.9
1.7
1.7
Supply
18.8
20.9
21.3
21.5
Consumption
7.8
7.5
8.1
7.9
Ending Stocks
11.0
13.3
13.2
13.6
Stock/Use Ratio
140.0%
177.0%
164.0%
170.3%
Source: USDA
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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 middleto-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
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Why Better Cotton?
• Sustainability
• Traceability
• Facilitate collaboration of the cotton supply chain for innovation
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Better Cotton 6 Production Principles
Minimize the harmful impact of crop protection practices
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
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Better Cotton Chain of Custody
MASS-BALANCE ADMINISTRATIVE
SEGREGATION
Chain of Custody Guidelines
Ginner Monitoring
Guidelines
Membership Code of
Practice
Retailer clients monitoring
requirements
Membership
Code of Practice
BCI membership
not required
Registered BCI
membership required
BCI membership
not required
BCI membership
required
Trader
Farmer
100%
Seed BC
100% BC Bale
Better Cotton Tracer
Products with associated BCCU
(Better Cotton Claim Units)
Better Cotton Tracer
Better Cotton
Tracer
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Better Cotton Supply Chain Event
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http://bettercotton.org
2015/7/21
Better Cotton Tour
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BCI China Wechat Message Code
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BCI Brands/Retailers Member
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BCI Brands/Retailers Member Public
Statements
Brands/Retailers
Public 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
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BCI China Members(Part)
*
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WHERE DOES BETTER COTTON GROW?
USA
Turkey
Tajikistan
India, Pakistan,
China
Brazil
Mali, Senegal,
Burkina Faso,
Cote d’Ivoire,
Ghana
CMIA Agreement
Mozambique,
Malawi, Zambia,
Zimbabwe
Australia
Countries where Better Cotton is grown via a partnership agreement between BCI and a national actor
Better Cotton Countries with BCI owned legal entities and operations
In the pipeline
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2014 Global Better Cotton Supply(Projection)
Country
Status
Number of Better
Cotton Farmers
Better Cotton
Acreage(Ha)
Better Cotton Lint(MT)
China
Direct
15,000
65,000
150,000
India
Direct
251,000
461,500
391,000
Pakistan
Direct
122,000
412,400
358,000
CmiA*
Benchmarking
460,000
350,000
180,000
Mali
Strategic Partnership
47,100
154,700
63,400
Brazil
Benchmarking
214
295,000
474,800
Mozambique
Strategic Partnership
100,000
63,331
10,000
Turkdy
Strategic Partnership
600
14,450
27,400
Kenya
Strategic Partnership
675
11,000
150
Senegal
Strategic Partnership
3,709
2,300
1,405
Tajikistan
Strategic Partnership
340
9,000
8,400
Australia
Benchmarking
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27,400
59,300
USA
Pilot Project
41
10550
10,520
2014 Global Data
Prediction
1,000,000
1,876,600
1,734,000
2013 Global Data
Actual
762,981
1,551,500
1,070,000
2014 Better Cotton Projects In China
XPCC No.5 LF
Addchance SH
Solidaridad VF SH and LF
Guoxin LF and SH
Huitong Nongxi SH
Luthai LF
Jintian LF
Solidaridad Huafu LF
Cotton Connect SH
Solidaridad Zhongliang LF
Taichang LF
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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.
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Better Cotton
Better Future
Thank you！
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