Fair Trade Cotton demand soaring

With all the news about commodity prices taking off and then some, notably oil, declining, I wondered what might be happening in the cotton markets. Thanks to the internet such information is close to hand.

It would appear that cotton about 35% more expensive now than it was 18 months ago but, surprisingly, costs no more than it did at this time in 2003, its previous peak.

My source is indexmundi.com. Looking at other products I like, over 5 years aribica coffee has increased in price to 250% of it's October 2003 value, bananas 250%, salmon 170% and sugar 240%.

And we see these upward price movements reflected in our shopping bills, although with the producer inevitably getting precious little of what we actually pay, the prices that we see have not moved that greatly. And yes, clothing prices in the High Street have been coming down reflecting the relative stability in the price of cotton.

What made me look at these numbers? It was a little report that I picked up in Images, the trade journal for our promotional clothing industry. According to Images, fairtrade.net reports that "the worldwide demand for fair trade cotton has doubled over the past 12 months".

Despite the obvious growth in the fair trade market, this statistic surprised me so I checked out the original report on the fairtrade site. Indeed, it's true - "Fairtrade cotton farmers have... seen demand for their produce more than double in just one year. During 2007, the sales of items made out of Fairtrade certified cotton, ranging from cotton wool to jeans and towels, surpassed 14 million individual items"

And that's just cotton carrying the Fairtrade label, as opposed to carrying other equally worthy certifications such as WRAP (which clothing supplied by our main supplier Starworld carries).

With all this increase in demand, why have our prices have been relatively stable, always a help in times like these? My conclusion is that more and more suppliers are signing up to the fair trade ethos (a good thing) so that supply is to some extent keeping up with demand. And if the prices have been fair in the past, why should they rise anyway?

In the world of commodities today fairness is not exactly an economic concept which is at the forefront of the mind of a commodity trader short selling, but in the fair trade markets where suppliers (like Starworld) buy locally, and then deal directly with buyers (like us), things are perhaps a little different.

Pick your cotton carefully!

It's good to see a conference being organised to highlight issues in the supply of cotton for clothing. We've already featured the use of child labour in Kazakhstan in this blog - follow the 'cotton industry' label below for more articles - and this conference seeks to pick up this issue and others such as the use of pesticide and fair trade.

To present the issues, speakers will include representatives from Pesticide Action Network UK, Action Aid, Traidcraft and the International Fair Trade Association.

The conference is at Southampton Solent University on Saturday 25 October - click here for a .pdf with full details or view the Southampton Fair Trade Group website.

Aside from the discussions, there will be a Cotton fair displaying organic fairly traded garments and displays illustrating the history of the cotton industry and working displays of spinning and hand-loom weaving.

Undermining fair trade in Cotton

When people think of fair trade the first thought is that the producer is paid a fair price for what is being produced. In a world economy where everyone is competing on price then what exactly is a fair price? That's where basic ethical considerations come into play. A government of a country that is a major producer of cotton on a global scale that in an organised way enslaves children to produce cotton cheaply undermines the whole market place, forcing many ethical farmers to live in poverty or simply put them out of business.

The country - Uzbekistan. The investigative journalism putting together the video evidence was carried out of the BBC's Newsnight programme. The video is in 3 parts, first part here, the remainder can be accessed at http://www.youtube.com/watch?v=h6BnqPQGITU




Many will argue that in the end the real responsibility rests with the Western consumer. We believe the vast majority of people care enough to pay a fair price but are unaware of what is going on. Our supplier Continental is running a major campaign to raise awareness on this issue. See their site: Boycott Uzbeck Cotton

Helping farmers convert to Organic

One of Pier 32's main suppliers is Continental, a promotional clothing company based in the UK, with which we have recently set up ties.

We are very pleased with our choice because they have recently announced that their entire range is to be either made from organic cotton or "organic cotton in conversion".

So what's this 'in conversion' tag? It's important because it identifies a product that is not quite the same as pure Organic Cotton. It identifies fabric from farmers who are especially in need of support - those who choose to convert their crops from chemical production methods to those that are organic. These farmers have chosen to forsake the use of chemicals and unfortunately find themselves in limbo, unable to use the Organic label until their soil is free of all traces of chemical residues. However their cotton is not sprayed with pesticides, they no longer use chemical fertilizer and they use natural methods of pest control.

By buying products made from "organic cotton in conversion" you support these farmers at a time when their businesses are most vulnerable. If they cannot make the conversion because of financial constraints then the land is in danger of being sold and/or going back to the use of chemicals. Continental explain more in this article on Organic Cotton.