Fashion Market Niches for Organic Agroforestry Cotton: Market Potential for Promoting Sustainable Supply Chains

Rhyllary Coelho e Silva, Ricardo de Siqueira Camargo, Gabriel da Silva Medina, Mariana Gatti, Eva Sevigne-Itoiz, Lorenzo Di Lucia and Onesmus N. Mwabonje ()
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Rhyllary Coelho e Silva: Faculty of Agronomy and Veterinary Medicine, University of Brasilia, Brasília 70910-900, Brazil
Ricardo de Siqueira Camargo: Agricultural Family School of Uirapuru Goiás, Uirapuru 76525-000, Brazil
Gabriel da Silva Medina: Faculty of Agronomy and Veterinary Medicine, University of Brasilia, Brasília 70910-900, Brazil
Mariana Gatti: FarFarm, Av. Coronel Marcos, 483/11, Bairro Pedra Redonda, Porto Alegre 91760-000, Brazil
Eva Sevigne-Itoiz: Centre for Environmental Policy, Faculty of Natural Sciences, Imperial College London, Weeks Building, 16-18 Princess Garden, South Kensington, London SW7 1NE, UK
Lorenzo Di Lucia: Centre for Environmental Policy, Faculty of Natural Sciences, Imperial College London, Weeks Building, 16-18 Princess Garden, South Kensington, London SW7 1NE, UK
Onesmus N. Mwabonje: Centre for Environmental Policy, Faculty of Natural Sciences, Imperial College London, Weeks Building, 16-18 Princess Garden, South Kensington, London SW7 1NE, UK

Sustainability, 2022, vol. 15, issue 1, 1-17

Abstract: We hypothesize that Fashion brands’ demand for organic agroforestry cotton (OAC) may foster more sustainable supply chains in the cotton industry. However, to realize the potential of the OAC market, a better understanding of the market demand for OAC, as well as the quality and production standards under which the brands operate, the institutional frameworks, and the market mechanisms that underpin its commercialization, is needed. We evaluated the existing organic markets in Brazil using an interview-based methodology with key stakeholders throughout the organic cotton supply chain in 2022. Our study revealed that some brands are willing to pay prices ranging from USD$ 2.57 to USD$ 4.61 per kg of cotton lint depending on the brand. These brands require suppliers to meet quality specifications for the cotton fiber; for example, they require average to long fibers and specify harvesting practices that influence fiber quality. There are also social and environmental criteria that prioritize vulnerable communities of family farmers and women groups planting cotton based on established sustainable practices. The institutional framework includes different stakeholders throughout the organic cotton supply chain, which is fundamentally driven by private demand for cotton, counts on the support of agents connecting brands to farmers, and is indirectly supported by public policies. Existing markets for organic cotton are established via contracts that provide farmers with guarantees to invest in planting cotton and have different certification systems used by the brands that monitor and verify adherence to the standards. Market demand for OAC may, therefore, potentially lead to new markets that promote sustainable supply chains and farming practices. However, existing markets for organic cotton reveal complex requirements that must be addressed, such as the need for supporting agents connecting brands to farmers, and market mechanisms, such as complex contracts and certification.

Keywords: organic cotton; organic agroforestry cotton; agroforestry; environmental, social, and corporate governance (ESG); regenerative agriculture; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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