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More Crop Per Drop 
WATER REPORT ON THE COTTON INDUSTRY 
Working with smallholder farmers 
to increase yield and maximise water efficiency 
in the cotton industry 
SEPTEMBER 2014 1
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
2 
EXECUTIVE SUMMARY 
Executive Summary 
Cotton is a hugely important and significant 
crop. A growing population continues to 
purchase a wide range of cotton fabrics and 
textiles at a fast growing rate. In fact, cotton is still 
the most widely used natural fibre used in clothing 
today. 
And more than 100 million smallholder farmers 
and their families rely on cotton for a living, with 
90% of those farmers living in the developing world, 
according to WWF. 
But cotton faces significant sustainability risks 
and challenges, not least its reliance on water and 
the impact of climate change. For every t-shirt made, 
around 2,700 litres of water is used across the 
supply chain from farm to fashion, inclusive of water 
consumed end to end from agricultural processes 
to Textile processing to convert fibre to final finished 
product – the same amount of water the average 
person drinks in three years; it is certainly a thirsty 
crop. 
The urgent need for climate change adaptation and 
better use of increasingly limited water resources 
puts pressure on the cotton industry. 
As the World Economic Forum notes, water 
security is “one of the most tangible and fastest-growing 
social, political and economic challenges 
faced today”. The world is likely to face a 40% global 
shortfall between forecast demand and available 
supply of water in the next 15 years. 
But with basic interventions, such as training and 
education, smallholder farmers can dramatically 
save water by adopting more sustainable agricultural 
practices. However, many farmers do not have 
access to basic information when it comes to best 
practice for water use and conservation. Educating 
and empowering farmers and helping them gain 
access to finance help remove barriers to progress 
that need to be addresses urgently. 
Through its farmer training 
programmes, CottonConnect 
has proven that simple and basic 
techniques can help farmers reduce 
their water impact by as much as 30%. 
And by installing simple technologies 
such as drip irrigation systems, savings 
of up to 60% can be achieved. 
As World Water Week kicks off in 
Stockholm, the water debate is in the 
spotlight. Major global corporates are 
helping to raise the profile of today’s 
most pressing water challenges with a 
range of multi-million pound water-saving 
programmes and initiatives.
EXECUTIVE SUMMARY COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
This report offers a snapshot of the 
water challenge faced by the cotton 
industry, with a couple of compelling 
case studies that demonstrate what can 
be achieved through basic interventions 
via CottonConnect’s farmer training 
programmes. 
3 
Through its farmer training programmes, working 
with around 130,000 smallholder farmers in India, 
China and Pakistan, CottonConnect has proven 
that simple and basic techniques can help farmers 
reduce their water impact by as much as 30%. 
And by installing simple technologies such as drip 
irrigation systems, savings of up to 60% can be 
achieved. 
As World Water Week kicks off in Stockholm, 
the water debate is in the spotlight. Major global 
corporates are helping to raise the profile of today’s 
most pressing water challenges with a range of 
multi-million pound water-saving programmes and 
initiatives. 
But the other end of the supply chain is often 
overlooked. With 100 million farmers growing 
cotton globally, the impact that can be had through 
providing access to learning and basic technologies 
is significant. Companies, NGOs, governments and 
international development agencies must not forget 
the farmers on the ground that need the help and 
support of all stakeholders if they are to run more 
efficient and sustainable operations. 
Failure to connect all parts of the supply chain 
will put the future of cotton at risk. 
To create a sustainable cotton industry, we are 
calling for brands and retailers to get involved. We 
need corporate organisations to collaborate with 
organisations like CottonConnect to: 
1. Map and ensure greater transparency and 
better relationships across the supply chain; 
2. Take action to support basic interventions 
that can help smallholder farmers make up 
to 30% water savings (60% by investing in 
technologies such as drip irrigation); 
3. Collaborate and help to fund initiatives to 
help drive cotton supply chain sustainability 
at scale. 
Through the report, we want to share best practice, 
invite more brands and retailers to get to grips with 
the water challenge, and call for greater collaboration 
and action to take these basic interventions to scale 
to sustain the future of the cotton industry.
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
4 
INTRODUCTION 
1. Introduction 
1.1 Cotton is big business 
Some 20 million tonnes of cotton is produced 
every year in 90 countries – from China, the US to 
India, Pakistan and West Africa. Around 2.5% of 
all available arable land is under cotton production 
– some 35 million hectares – producing enough 
raw material to service current average worldwide 
consumption of 42 square meters of cotton per 
person per year, according to WWF. 
It is an important industry to the livelihood and 
wellbeing of millions of farmers and their families, 
90% of which live in the developing world. It’s also 
a complex sector, relying on the efforts of more than 
100 million smallholders that operate small pockets 
of land of less than two hectares. 
But cotton has a problem. 
It is an incredibly thirsty crop, accounting for more 
than 3% of the global water consumption used for 
all crop production. 
According to Better Cotton Initiative, it can take 
about 10,000 litres of water to make one kilogramme 
of cotton. As the figure below shows, making one 
cotton T-shirt requires around 2,700 litres, the same 
amount of water the average person drinks during 
the course of three years. 
In India, cotton cultivation accounts for using 
nearly 6% of water used for irrigation in agriculture 
across the country. 
Water footprint of cotton products Litres 
Blue Water Green Water Grey Water Total water 
1 pair of jeans 4,900 4,450 1,500 10,850 
1 cotton t-shirt 1,230 1,110 380 2,720 
1 pair of diapers 370 330 110 810 
1 cotton swab (Q-tip) 1.6 1.5 0.5 3.6 
1.2 Water Scarcity is a Growing Problem 
Cotton’s demand for water is a problem that is not 
going to go away. 
The growing population and increasing 
consumerism means that more people are buying 
more consumers goods, including cotton products 
such as fashion garments, footwear, towels and 
medical supplies. 
According to the World Economic Forum, water 
security is “one of the most tangible and fastest-growing 
social, political and economic challenges 
faced today”. It argues that as the demand for water 
increases, the world will face a 40% global shortfall 
between forecast demand and available supply by 
2030. 
And water is becoming scarcer in the regions 
where cotton is most commonly grown, driven not 
least by the impacts of a changing climate and 
disruptive weather patterns. And non-food crops are 
constantly competing with food crops and livestock 
for this ever-depleting, finite resource.
INTRODUCTION COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
5 
WWF’s 2003 report, ‘Thirsty Crops’, points to the fact that, although 
agriculture uses 70% of the world’s water, rising to 90% in many 
developing countries, just 20-50% of the water withdrawn actually 
reaches the crops because it is often lost during transfer to the fields. 
It adds that big food-producing countries like China, India and Pakistan 
have reached or are close to reaching their renewable water resource 
limits. “Water tables are dropping by as much as 10 metres annually in 
the worst cases,” it says. 
The combination of poor and inefficient use of water 
in farming practices across the developing world, 
lack of access to education and sharing of best 
practice, and lack of access to finance to invest in 
new technologies is exacerbating the problem. 
Brands and retailers that rely on the supply 
of cotton to create products sold in their stores 
across the world will ultimately bear the brunt of 
this water crunch. The cotton industry must better 
understand its water footprint and find ways to deal 
with it responsibly – not only for the environment 
and for consumers, but also for the wellbeing of 
the communities in which cotton is grown and 
manufactured. 
And it is up to businesses and NGOs to support and 
work with the thousands of smallholder farmers to 
collaborate to tackle these water issues together. 
CottonConnect has worked with more than 
130,000 smallholder cotton farmers in India, 
Pakistan and China, over the past four years – 
supporting and collaborating with some of the 
brands that rely on cotton in their supply chain – to 
tackle these issues at farm level. 
Section 2 highlights what has already worked, 
section 3 examines the barriers to farmers adopting 
more sustainable agricultural practices, and the 
final section sets out a series of actions for brands 
and retailers can take to help build a more resilient 
and sustainable future for cotton.
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
6 
WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? 
2. Working with smallholder farmers – 
What can be done? 
2.1 Farmer Training Programmes – 
A Four-Step Approach to Dealing with Water 
CottonConnect works with a specific four-step 
approach to effective water management in 
its farmer training programmes. This enables 
smallholder farmers to start to learn and implement 
basic, yet effective, agricultural practices, and then 
move on to adopting technologies such as rainwater 
harvesting and drip irrigation. 
STEP ONE Good Agricultural Practices (e.g. water management) 
STEP TWO Sustainable Agricultural Practices (e.g. rainwater harvesting) 
STEP THREE Modern Agricultural Practices (e.g. the use of sprinklers) 
STEP FOUR Advanced Agricultural Practices (e.g. drip irrigation technology) 
2.2 Adoption of Basic and Sustainable 
Agricultural Practices 
Relatively small changes can make a significant 
impact on water usage and the drought resistance 
of the cotton crop. 
Farmer training includes integrated water 
management designed to demonstrate how farmers 
can use sustainable ways to use less water to 
produce their cotton yield. For example, in India, 
simple interventions such as burrow irrigation, green 
mulching, plastic mulching and soil conservation 
have resulted in significant water usage reduction, 
sometimes by as much as 30%. 
In many cases farmers haven’t been shown 
basic techniques before and so there is a need to 
build the capacity of farmers to take small steps on 
their farms.
WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
7 
BASIC AGRICULTURAL PRACTICES ADOPTED IN INDIA 
In Maharashtra, a western region of India, 
2.3 Investing in Modern Agricultural Practices 
Beyond adopting simple and low-cost improvements, 
farmers can experience significant benefit from the 
introduction of technologies, such as drip irrigation, 
which can reduce water consumption by up to 60% 
for some farmers. 
Of course, new technologies demand financial 
investment and the inability of the majority of 
farmers to access adequate finance, is one of the 
significant factors hindering the adoption of modern 
agricultural practices in cotton cultivation. 
But it is the one thing that could have the most 
dramatic and significant impact in cotton farming. 
Less than 2% of the total irrigated area in India 
is currently drip-irrigated. 
The WWF report states that 50-80% of the water 
withdrawn actually reaches the crops because it is 
often lost during the transfer to the field. 
which has more than 110 million inhabitants, a 
falling water table due to excessive water use 
has left farmers vulnerable. 
The CottonConnect training programme has 
introduced farmers to a range of simple changes 
to practices that allowed them to improve yields 
and reduce their water use by 30% in 2012-13. 
Furrow irrigation: The farmers used to flood 
their fields with water, but a shift to alternate 
furrow irrigation has proved very successful in 
saving water; 
Green mulching: Farmers are taught how to 
keep moisture levels in tact by using green 
mulching, enabling the land to retain moisture for 
a longer period of time; 
Plastic mulching: This mulching works in the 
same way, reducing the amount of water needed 
to keep the moisture levels high; 
Soil conservation: Again, this activity has the 
added benefit of containing moisture in the soil 
and requiring less water in the process. 
Hardeep Desai, 
Farm Innovation Director at 
CottonConnect, South Asia 
“Our priority is to get farmers 
engaged, show them how to 
conserve water and then support 
them with a structured programme. 
“It’s important for farmers to understand the 
problem. So when we visit the village while 
conducting the farmers training, we give the 
farmers small examples which are easy to 
understand. During the discussion, we request 
an elder farmer to explain about the scenario of 
underground water table in the village when he 
was a teenager. The farmer will explain that water 
was available only five to ten feet down when he 
was a teenager. Today, the underground water 
table is 700 feet down. 
“We then ask him to think about his children, and 
the situation when his children are older. The 
farmers will say that it is not easy to predict 
situation of underground water table after 20- 
30 years. This will act as a thought provoking 
exercise. It really helps farmers focus on the 
future of water and decide to act now. We also 
ask them to adopt practices of alternate furrow 
irrigation, Micro Irrigation System and other soil 
and moisture conservation activities. 
“These simple water management ideas are 
usually new news to farmers. Good water 
management practices give these farmers the 
scope to grow the crop with judicious use of 
water – which ultimately helps in increasing the 
underground water table and give good results .”
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
8 
WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? 
THE DRIP POOL PROGRAMME IN INDIA 
Before and after: Deshal Banesang Mori has reaped the benefits after buying a 3.5-acre 
drip irrigation system using a loan from the Drip Pool Programme. 
The Drip Pool Programme, funded by the 
C&A Foundation, began in June 2011. 
The project’s aim was to improve the 
productivity of the cotton crop for farmers in India 
by cutting the water footprint through the use of 
irrigation. 
CottonConnect, working with local partner Aga 
Khan Rural Support Programme India (AKRSPI), 
helped mobilise the cotton-growing farmers by 
educating them on the uses and benefits of micro-irrigation 
systems – particularly drips that reduce 
water consumption and improve the productivity 
of the cotton crop. 
Deshal Banesang Mori is from Sidsar village of 
Sayla Taluka in Gujarat, a state on the west coast 
of India with a population of more than 60 million. 
He has a 5.5 acre farm used to cultivate cotton 
(using 3.5 acres), vegetable cluster beans and 
wheat. 
In 2011, Deshal purchased a 3.5-acre drip 
irrigation system using a financial loan from the 
Drip Pool Programme. After installing the system, 
he was able grow cotton three weeks ahead of 
the usual planting season and has harvested 
2,700 kilograms more than his brother Vajesang 
who is farming the same size and quality of land 
with the same agricultural inputs. 
Meanwhile, Magan Bhai a farmer in Sanosara 
village in Chotila Taluka, again in Gujarat, India 
also installed drip irrigation system as part of the 
Drip Pool Programme. 
In 2012-2013, India faced a poor monsoon 
season. However, Magan found his cotton 
production increased by 50% compared to 
the previous year. Last year, his income was 
INR190,000 ($3,147). But this year, that figure 
rose to INR285,000 ($4,720), and being able to 
plant a crop of beans gave Magan an additional 
income of INR120,000 ($1,978). 
He also experienced cost savings using less 
phosphorus fertiliser and saved INR32,100 ($529). 
And he reduced the number of labour days spent 
weeding and irrigation by 25% to 30%. 
Drip irrigation not only results in significant 
water saving, but also results in an increase of the 
yield with higher germination rates. Introduction of 
the drip means farmers don’t need to rely on the 
rainfall – and the early maturity of the crop gives 
a better return on the investment. The fertilizer-use 
efficiency also increases with a provision of 
application of fertilizers through drip irrigation.
WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
9 
2.4 Research shows water benefits in organic cotton vs. 
conventional approach 
In 2011, C&A Foundation and CottonConnect 
supported the Water Footprint Network to review 
the environmental impact of organic cotton farming 
practices versus conventional practices. The study 
was designed to better understand the impact 
of cotton farming on freshwater pollution using 
grey water footprint (GWF) – the volume of water 
required to maintain the water quality according to 
agreed water quality standards - as an indicator. 
It studied two farm samples, one composed of 
240 conventional cotton farms and one composed 
of 240 organic cotton farms in the states of Gujarat 
and Madhya Pradesh in India where around 40% of 
the cotton fibre used in C&A’s clothing is cultivated. 
It confirmed that conventional farming practices 
generally have a higher grey water footprint than 
organic farming practices. Yes, the conventional 
farms are able to produce 635 metric tonnes of 
cotton a year (versus the 577 tonnes of organic 
production), but “it does not justify the 5.5 times 
larger total grey water fooptrint (951.583 m3/year 
for the conventional farms and 30.703.437 m3/year 
for the organic farms),” says the report. 
“Organic farming practices showed smaller grey 
water footprint and therefore a lower impact on water 
resources, while having similar land productivities 
as in conventional farming,” it added. “An important 
reduction of the grey water footprint and therefore 
a more sustainable supply chain could be achieved 
by organizing farmer training, especially for those 
shown to be the main contributors to the overall 
water footprint.” 
The CottonConnect farmer training programme 
makes farmers aware of the volumes of pesticides 
and water they are using, how this relates to the 
crop yield and how to use more sustainable cotton 
farming practices. 
You can read the full details of the methodology 
and analysis of the study here: 
www.waterfootprint.org 
C&A Foundation Pioneering Farmer Training 
C&A Foundation is a founding supporter and partner for CottonConnect’s work with more than 
130,000 farmers in India, Pakistan and China. 
“With CottonConnect, C&A Foundation is piloting financing schemes to give farmers greater access 
to drip irrigation technology. These new irrigation systems can increase yields by 30% and reduce 
water usage by up to 60%,” comments Leslie Johnston, Executive Director C&A Foundation. 
“We believe raising awareness of the benefits of organic cotton is important. It is the great 
standard to which we all should strive – given its proven environmental, social, and economic 
benefits. We already see how our support to this sector is contributing to improved livelihoods and 
healthier farming communities. And we aim to deepen this work, ultimately impacting hundreds of 
thousands of people who depend on cotton for their livelihoods. 
“C&A Foundation is proud to support CottonConnect in its work connecting retailers to cotton 
farmers, helping both to work closely together to create a sustainable cotton industry and better 
business for the future. There are many examples of the positive impact for the cotton industry 
and by sharing these stories, we hope more brands will be inspired to act.”
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
10 
ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE 
3. Action from brands to take 
impacts to scale 
The activities and approaches for smallholder 
cotton farmers, supported by CottonConnect, 
prove that change is possible. In fact, results 
demonstrate that basic interventions at farm level 
can make a significant difference, environmentally, 
socially and economically, as smallholders reap the 
benefits of using less water while improving their 
crop yields. 
But now is the time to scale-up these activities so 
that these pockets of action at a project or pilot level 
are replicated and reinforced by not only hundreds 
of thousands of farmers, but by millions. However, 
challenges and barriers to the adoption of more 
modern and sustainable agricultural practices 
remain.
ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
11 
These could potentially be overcome by international 
brands playing a bigger role in helping to build better 
relationships with their suppliers and to support the 
efforts of farmers that will build a more resilient 
supply of cotton via knowledge-sharing, education, 
training and improving access to finance. 
3.1 Brands and Retailers 
Must Recognise the Business 
Risk and Be More Accountable 
The CDP’s 2013 Global Water Report suggests that 
companies are getting to grips with their water use, 
risk and impacts. The survey indicates that over 
90% of the businesses that responded now have 
water management plans in place. 
But despite the vast majority of companies 
reporting that water represents a “substantive 
business risk”, most companies are primarily 
focused on managing water within their own 
operations – not along the supply chain. The CDP 
claims that “water stewardship activities are notably 
lacking, potentially exposing their company and 
investors to risks that could be mitigated”. 
The recent VOX Global/Pacific Institute study 
examining whether US companies are prepared 
for looming water challenges is consistent with the 
CDP data. Responding to the survey, 79% percent 
of businesses claim that they currently face water 
challenges, with 84% stating that they will face 
water challenges in the next five years. 
And many make the connection between water 
challenges and their bottom line, with almost 60% 
indicating that water issues are likely to negatively 
affect business growth and profitability. 
However, many respondents said they had no 
plans to increase the breadth and scale of their water 
risk management practices. The report claims that 
“nearly 70% of companies said their current level 
of investment in water management is sufficient”, 
which is inconsistent with the widespread belief that 
water challenges “will significantly worsen in the 
next five years”. 
Clearly, business recognises that water issues 
are important and pose a significant risk to their 
business. But the reality is that few are making 
plans to do something about it, particularly in 
dealing with the water challenges faced across their 
supply chain. 
If you are unaware of the impacts along the 
supply chain – or don’t know where they are – it is 
difficult to be accountable for dealing with them. It is 
up to brands to understand the challenges faced by 
their suppliers and to take action where it is needed.
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
12 
ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE 
BRINGING JOHN LEWIS FACE TO FACE WITH ITS COTTON FARMERS 
The UK retailer John Lewis has been 
working with CottonConnect to improve 
its relationship with its suppliers and 
increase traceability. In February, Stephen 
Cawley, the company’s Head of Sustainability 
and Responsible Sourcing paid a visit to some 
of the local smallholder farmers in India that 
are involved in a joint three-year farmer training 
programme. 
Cotton is the main raw material for John 
Lewis’ textile and apparel teams, and securing a 
sustainable and transparent supply in the future 
is vital. The programme sees the UK retailer 
work with local farmers responsible for producing 
cotton used in the manufacturing of its towels, 
bath mats and curtains, sold in stores throughout 
the UK. 
The programme helps to educate and train 
India’s conventional cotton farmers to move 
to more sustainable farming methods, with 
CottonConnect working with manufacturers, 
spinners, and farm groups to make changes at 
a farm level. 
A total of 1,500 farmers will be trained during 
the three-year period of the project, positively 
affecting the lives, livelihoods and employment of 
around 7,500 people. 
But this is also an opportunity for John Lewis to 
ensure security of supply, improve traceability to 
the source of the cotton fibre used in its products, 
and interact with the farmers at the end of the 
supply chain. 
Traditionally, the John Lewis buying teams 
operate through brokers in the cotton industry. 
But here, the cotton-buying team is brought face-to- 
face with farmers. 
John Lewis team welcomed 
“It was amazing to see the interaction between 
the retailer team and the local farmers,” explains 
Alison Ward, CottonConnect’s CEO. “The 
moment when the villagers met their customers 
responsible for turning the raw material into actual 
products was incredible. But when a commercial 
entity turns up in a village, the whole dynamic can 
change.” 
“We act as an independent third party, helping 
to build a new trade model; keeping it separate 
from the commercial conversation, helping to 
provide the right conditions to facilitate better 
understanding, greater transparency, working 
towards better livelihoods for the farmers.” 
So, what’s driving this traceability and 
relationship-building between brand and farmer? 
There’s no doubt that ethically-conscious and 
increasingly demanding consumers expect more 
from the companies they buy from, right across 
the high street. 
“John Lewis is an established and trusted 
brand, so it was natural for us to want to ensure 
transparency and integrity right across our supply 
chain and support the development of close 
relationships with our suppliers,” said Stephen 
Cawley, Head of Sustainability and Responsible 
Sourcing John Lewis. 
“The engagement brings benefits to the brand 
– we are helping to ensure security of supply, 
traceability to the fibre source, as well as having 
a positive impact on the social and environmental 
conditions of the farmers in India – which is crucial 
when such a large part of our manufacturing 
supply chain is based in that part of the world.” 
John Lewis team in India
ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
13 
3.2 Improve Traceability 
Consumers are increasingly aware of the 
sustainability credentials of the brands from which 
they purchase products and services. 
A 2013 study by GlobeScan, SustainAbility 
and BBMG found that a majority of consumers 
are seeking to reconcile their desire for shopping 
and style with responsibility to the environment 
and society through their purchases. According to 
the report, ‘Rethinking Consumption: Consumers 
and the Future of Sustainability’, almost two-thirds 
of consumers globally say they “feel a 
sense of responsibility to society”. And two-thirds 
of consumers say they “have a responsibility to 
purchase products that are good for the environment 
and society”. 
And consumers say that they will pay more for 
those goods. A recent study by Nielsen found that 
55% of global online consumers across 60 countries 
say they are willing to pay more for products and 
services provided by companies that are committed 
to positive social and environmental impact. 
As household names, brands command huge 
brand loyalty and are ideally placed to raise 
consumer awareness of and demand for greener 
products by improving traceability and creating 
more effective communications strategies to explain 
their approaches to sustainability. 
The cotton industry needs greater collaboration 
between retailers and farmers to address major 
challenges and create a more sustainable industry. 
CottonConnect connects retailers with their 
cotton supply chain through bespoke programmes 
and technology and by providing strategic advice 
on supply chains for the future. This includes 
value chain mapping, analysing transactions from 
garment to farmer, connecting supply chains from 
farm to garment and the monitoring and evaluation 
of impacts. 
3.3 Help Improve Access to Finance 
Many farmers need capital, usually in the form of 
loans, to be able to buy modern equipment, such as 
drip irrigation technology. 
CottonConnect, in association with C&A, 
International Finance Corporate (IFC) and IDH 
– the Sustainable Trade Initiative, launched the 
India Drip Finance Programme, in a bid to promote 
innovative and implementable solutions that solve 
the problem of accessing finance for drip irrigation 
in cotton cultivation in India. 
The pilot learning programme was designed to 
provide loans for the farmers to pay for drip irrigation 
apparatus. The loan was to be repaid by the farmer 
and the money returned to the programme. The 
learning programme found that while national 
level banks see the need to invest in farmers ‘at 
the bottom of the pyramid’ locally based banks are 
often too nervous to extend credit. Also from farmer 
perspective they needed to have the reassurance 
of support of medium term support (3 to 5 years), 
as they are often concerned about adopting new 
practices. 
Finding ways for farmers to access credit and 
empowering them – not just with information 
and knowledge, but with business skills too – is 
absolutely crucial. 
There could be multiple steps to this including: 
1. Involvement of NGOs. Farmers trust the 
NGOs as they are local and the intermediary 
coordination remains at its best; 
2. Government contribution to the reduce the 
intermediary process cost requirements that add 
up to the cost of the whole product; and 
3. Collaboration between external agencies, as 
well as cotton fibre consumers, in funding the 
drip irrigation equipment as a loan managed with 
the sale of the fibres at the time of harvesting. 
An inclusive approach is required to embrace 
and train the poorest farmers, not just the already 
mobilised or educated farmers.
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
14 
ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE 
3.4 Collaboration and Investment from Brands 
in Farmer Training is Critical 
Effectively scaling-up the activities and approaches 
outlined in this report will only be achieved through 
collaborative effort; the challenge is too big for any 
single organization to do it alone. 
The opportunity for collaboration to tackle 
cotton’s big challenges is significant. International 
development agencies, governments, businesses 
and NGOs must find ways to work together – to help 
find solutions to address the challenges and agree 
a vision for what a sustainable cotton industry looks 
like – and map the route to get there. 
By partnering with agencies of government, 
investors and funders, the efforts of smallholder 
farmers can be linked to wider watershed activities, 
thereby benefiting from and contributing to water 
management at a watershed level. 
Those invested in the cotton industry need to 
address the water challenge and learn how to 
support small holder farmers to produce cotton with 
less water. It is up to business to play a leading role 
and for the likes of CottonConnect to facilitate this 
collaboration. 
4. Time for Action 
This report from CottonConnect outlines a 
number of activities and approaches working with 
smallholder farmers that are already successfully 
enabling a more sustainable cotton supply chain, as 
well as a number of recommendations for brands 
and retailers. 
But what can businesses do to help tackle the 
water issues that post a serious risk to growth and 
profitability in the coming years? 
This is a call to action for brands and retailers to 
step forward: 
1. Understand and recognise the risk associated 
with water scarcity and security of supply. As 
water tables fall and pressure on farmers rises, it 
is time to get serious about the threat posed by 
this huge challenge to the cotton industry. 
2. Map suppliers and develop better transparency 
and security of supply. Learn from brands 
working with a fully transparent supply chain, 
understanding the pressure points for suppliers, 
and working to eliminate the risk associated with 
cotton supply. 
3. Take action to support smallholder farmer 
training programmes providing basic 
interventions. Educating and training farmers to 
adopt more sustainable agricultural practices is 
proven to reduced their water consumption by up 
to 30%. Helping them to access finance to invest 
in technologies, such as drip irrigation, can lead 
to water reduction of up to 60%. 
4. Collaborate with others to help drive this 
supply chain sustainability at scale. Work 
with international development agencies, 
governments, NGOs and other businesses to 
develop innovative ways to transform the entire 
cotton supply chain at scale. 
5. Share information best practice and learnings 
with your teams, with your colleagues across 
the industry, and with members of your supply 
chain, to facilitate support and investment to 
help secure a sustainable future for the cotton 
industry.
15 
TIME FOR ACTION 
All pictures © CottonConnect 
COTTONCONNECT WATER REPORT – SEPTEMBER 2014 
Farmers in farmer training workshop on more sustainable farming practices, India 
CottonConnect is a social enterprise pioneering 
a transparent and sustainable cotton supply chain 
from retailers to farmers to build a sustainable future 
for the cotton industry. 
• Connecting retailers to the supply chain 
and to cotton farmers, creating relationships, 
transparency and efficiency, delivering business 
value, reducing costs and building security of 
supply. 
• Improving farmer livelihoods – we help 
farmers farm better by supporting them with 
business skills, access to finance, knowledge 
and expertise in farming practices – which are 
better for the farmer and for the environment. 
• Sharing best practice – farmer education, 
farmers groups to share knowledge, and support 
knowledge of farming techniques, helping them 
to farm safely and sustainably. 
In the last four years, we have worked with 
130,000 farmers and increased the land under 
sustainable cultivation by almost 300,000 acres. 
On average, we have helped to reduce the water 
usage of the farmers we have worked with by 20% 
(but in many cases as much as 30% to 60%). 
Get in touch to find out more 
about CottonConnect’s services – 
www.cottonconnect.org
CottonConnect is a social enterprise pioneering a transparent and sustainable cotton supply chain from 
retailers to farmers to build a sustainable future for the cotton industry

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More Crop Per Drop - Water Report on the Cotton Industry

  • 1. More Crop Per Drop WATER REPORT ON THE COTTON INDUSTRY Working with smallholder farmers to increase yield and maximise water efficiency in the cotton industry SEPTEMBER 2014 1
  • 2. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 2 EXECUTIVE SUMMARY Executive Summary Cotton is a hugely important and significant crop. A growing population continues to purchase a wide range of cotton fabrics and textiles at a fast growing rate. In fact, cotton is still the most widely used natural fibre used in clothing today. And more than 100 million smallholder farmers and their families rely on cotton for a living, with 90% of those farmers living in the developing world, according to WWF. But cotton faces significant sustainability risks and challenges, not least its reliance on water and the impact of climate change. For every t-shirt made, around 2,700 litres of water is used across the supply chain from farm to fashion, inclusive of water consumed end to end from agricultural processes to Textile processing to convert fibre to final finished product – the same amount of water the average person drinks in three years; it is certainly a thirsty crop. The urgent need for climate change adaptation and better use of increasingly limited water resources puts pressure on the cotton industry. As the World Economic Forum notes, water security is “one of the most tangible and fastest-growing social, political and economic challenges faced today”. The world is likely to face a 40% global shortfall between forecast demand and available supply of water in the next 15 years. But with basic interventions, such as training and education, smallholder farmers can dramatically save water by adopting more sustainable agricultural practices. However, many farmers do not have access to basic information when it comes to best practice for water use and conservation. Educating and empowering farmers and helping them gain access to finance help remove barriers to progress that need to be addresses urgently. Through its farmer training programmes, CottonConnect has proven that simple and basic techniques can help farmers reduce their water impact by as much as 30%. And by installing simple technologies such as drip irrigation systems, savings of up to 60% can be achieved. As World Water Week kicks off in Stockholm, the water debate is in the spotlight. Major global corporates are helping to raise the profile of today’s most pressing water challenges with a range of multi-million pound water-saving programmes and initiatives.
  • 3. EXECUTIVE SUMMARY COTTONCONNECT WATER REPORT – SEPTEMBER 2014 This report offers a snapshot of the water challenge faced by the cotton industry, with a couple of compelling case studies that demonstrate what can be achieved through basic interventions via CottonConnect’s farmer training programmes. 3 Through its farmer training programmes, working with around 130,000 smallholder farmers in India, China and Pakistan, CottonConnect has proven that simple and basic techniques can help farmers reduce their water impact by as much as 30%. And by installing simple technologies such as drip irrigation systems, savings of up to 60% can be achieved. As World Water Week kicks off in Stockholm, the water debate is in the spotlight. Major global corporates are helping to raise the profile of today’s most pressing water challenges with a range of multi-million pound water-saving programmes and initiatives. But the other end of the supply chain is often overlooked. With 100 million farmers growing cotton globally, the impact that can be had through providing access to learning and basic technologies is significant. Companies, NGOs, governments and international development agencies must not forget the farmers on the ground that need the help and support of all stakeholders if they are to run more efficient and sustainable operations. Failure to connect all parts of the supply chain will put the future of cotton at risk. To create a sustainable cotton industry, we are calling for brands and retailers to get involved. We need corporate organisations to collaborate with organisations like CottonConnect to: 1. Map and ensure greater transparency and better relationships across the supply chain; 2. Take action to support basic interventions that can help smallholder farmers make up to 30% water savings (60% by investing in technologies such as drip irrigation); 3. Collaborate and help to fund initiatives to help drive cotton supply chain sustainability at scale. Through the report, we want to share best practice, invite more brands and retailers to get to grips with the water challenge, and call for greater collaboration and action to take these basic interventions to scale to sustain the future of the cotton industry.
  • 4. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 4 INTRODUCTION 1. Introduction 1.1 Cotton is big business Some 20 million tonnes of cotton is produced every year in 90 countries – from China, the US to India, Pakistan and West Africa. Around 2.5% of all available arable land is under cotton production – some 35 million hectares – producing enough raw material to service current average worldwide consumption of 42 square meters of cotton per person per year, according to WWF. It is an important industry to the livelihood and wellbeing of millions of farmers and their families, 90% of which live in the developing world. It’s also a complex sector, relying on the efforts of more than 100 million smallholders that operate small pockets of land of less than two hectares. But cotton has a problem. It is an incredibly thirsty crop, accounting for more than 3% of the global water consumption used for all crop production. According to Better Cotton Initiative, it can take about 10,000 litres of water to make one kilogramme of cotton. As the figure below shows, making one cotton T-shirt requires around 2,700 litres, the same amount of water the average person drinks during the course of three years. In India, cotton cultivation accounts for using nearly 6% of water used for irrigation in agriculture across the country. Water footprint of cotton products Litres Blue Water Green Water Grey Water Total water 1 pair of jeans 4,900 4,450 1,500 10,850 1 cotton t-shirt 1,230 1,110 380 2,720 1 pair of diapers 370 330 110 810 1 cotton swab (Q-tip) 1.6 1.5 0.5 3.6 1.2 Water Scarcity is a Growing Problem Cotton’s demand for water is a problem that is not going to go away. The growing population and increasing consumerism means that more people are buying more consumers goods, including cotton products such as fashion garments, footwear, towels and medical supplies. According to the World Economic Forum, water security is “one of the most tangible and fastest-growing social, political and economic challenges faced today”. It argues that as the demand for water increases, the world will face a 40% global shortfall between forecast demand and available supply by 2030. And water is becoming scarcer in the regions where cotton is most commonly grown, driven not least by the impacts of a changing climate and disruptive weather patterns. And non-food crops are constantly competing with food crops and livestock for this ever-depleting, finite resource.
  • 5. INTRODUCTION COTTONCONNECT WATER REPORT – SEPTEMBER 2014 5 WWF’s 2003 report, ‘Thirsty Crops’, points to the fact that, although agriculture uses 70% of the world’s water, rising to 90% in many developing countries, just 20-50% of the water withdrawn actually reaches the crops because it is often lost during transfer to the fields. It adds that big food-producing countries like China, India and Pakistan have reached or are close to reaching their renewable water resource limits. “Water tables are dropping by as much as 10 metres annually in the worst cases,” it says. The combination of poor and inefficient use of water in farming practices across the developing world, lack of access to education and sharing of best practice, and lack of access to finance to invest in new technologies is exacerbating the problem. Brands and retailers that rely on the supply of cotton to create products sold in their stores across the world will ultimately bear the brunt of this water crunch. The cotton industry must better understand its water footprint and find ways to deal with it responsibly – not only for the environment and for consumers, but also for the wellbeing of the communities in which cotton is grown and manufactured. And it is up to businesses and NGOs to support and work with the thousands of smallholder farmers to collaborate to tackle these water issues together. CottonConnect has worked with more than 130,000 smallholder cotton farmers in India, Pakistan and China, over the past four years – supporting and collaborating with some of the brands that rely on cotton in their supply chain – to tackle these issues at farm level. Section 2 highlights what has already worked, section 3 examines the barriers to farmers adopting more sustainable agricultural practices, and the final section sets out a series of actions for brands and retailers can take to help build a more resilient and sustainable future for cotton.
  • 6. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 6 WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? 2. Working with smallholder farmers – What can be done? 2.1 Farmer Training Programmes – A Four-Step Approach to Dealing with Water CottonConnect works with a specific four-step approach to effective water management in its farmer training programmes. This enables smallholder farmers to start to learn and implement basic, yet effective, agricultural practices, and then move on to adopting technologies such as rainwater harvesting and drip irrigation. STEP ONE Good Agricultural Practices (e.g. water management) STEP TWO Sustainable Agricultural Practices (e.g. rainwater harvesting) STEP THREE Modern Agricultural Practices (e.g. the use of sprinklers) STEP FOUR Advanced Agricultural Practices (e.g. drip irrigation technology) 2.2 Adoption of Basic and Sustainable Agricultural Practices Relatively small changes can make a significant impact on water usage and the drought resistance of the cotton crop. Farmer training includes integrated water management designed to demonstrate how farmers can use sustainable ways to use less water to produce their cotton yield. For example, in India, simple interventions such as burrow irrigation, green mulching, plastic mulching and soil conservation have resulted in significant water usage reduction, sometimes by as much as 30%. In many cases farmers haven’t been shown basic techniques before and so there is a need to build the capacity of farmers to take small steps on their farms.
  • 7. WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? COTTONCONNECT WATER REPORT – SEPTEMBER 2014 7 BASIC AGRICULTURAL PRACTICES ADOPTED IN INDIA In Maharashtra, a western region of India, 2.3 Investing in Modern Agricultural Practices Beyond adopting simple and low-cost improvements, farmers can experience significant benefit from the introduction of technologies, such as drip irrigation, which can reduce water consumption by up to 60% for some farmers. Of course, new technologies demand financial investment and the inability of the majority of farmers to access adequate finance, is one of the significant factors hindering the adoption of modern agricultural practices in cotton cultivation. But it is the one thing that could have the most dramatic and significant impact in cotton farming. Less than 2% of the total irrigated area in India is currently drip-irrigated. The WWF report states that 50-80% of the water withdrawn actually reaches the crops because it is often lost during the transfer to the field. which has more than 110 million inhabitants, a falling water table due to excessive water use has left farmers vulnerable. The CottonConnect training programme has introduced farmers to a range of simple changes to practices that allowed them to improve yields and reduce their water use by 30% in 2012-13. Furrow irrigation: The farmers used to flood their fields with water, but a shift to alternate furrow irrigation has proved very successful in saving water; Green mulching: Farmers are taught how to keep moisture levels in tact by using green mulching, enabling the land to retain moisture for a longer period of time; Plastic mulching: This mulching works in the same way, reducing the amount of water needed to keep the moisture levels high; Soil conservation: Again, this activity has the added benefit of containing moisture in the soil and requiring less water in the process. Hardeep Desai, Farm Innovation Director at CottonConnect, South Asia “Our priority is to get farmers engaged, show them how to conserve water and then support them with a structured programme. “It’s important for farmers to understand the problem. So when we visit the village while conducting the farmers training, we give the farmers small examples which are easy to understand. During the discussion, we request an elder farmer to explain about the scenario of underground water table in the village when he was a teenager. The farmer will explain that water was available only five to ten feet down when he was a teenager. Today, the underground water table is 700 feet down. “We then ask him to think about his children, and the situation when his children are older. The farmers will say that it is not easy to predict situation of underground water table after 20- 30 years. This will act as a thought provoking exercise. It really helps farmers focus on the future of water and decide to act now. We also ask them to adopt practices of alternate furrow irrigation, Micro Irrigation System and other soil and moisture conservation activities. “These simple water management ideas are usually new news to farmers. Good water management practices give these farmers the scope to grow the crop with judicious use of water – which ultimately helps in increasing the underground water table and give good results .”
  • 8. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 8 WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? THE DRIP POOL PROGRAMME IN INDIA Before and after: Deshal Banesang Mori has reaped the benefits after buying a 3.5-acre drip irrigation system using a loan from the Drip Pool Programme. The Drip Pool Programme, funded by the C&A Foundation, began in June 2011. The project’s aim was to improve the productivity of the cotton crop for farmers in India by cutting the water footprint through the use of irrigation. CottonConnect, working with local partner Aga Khan Rural Support Programme India (AKRSPI), helped mobilise the cotton-growing farmers by educating them on the uses and benefits of micro-irrigation systems – particularly drips that reduce water consumption and improve the productivity of the cotton crop. Deshal Banesang Mori is from Sidsar village of Sayla Taluka in Gujarat, a state on the west coast of India with a population of more than 60 million. He has a 5.5 acre farm used to cultivate cotton (using 3.5 acres), vegetable cluster beans and wheat. In 2011, Deshal purchased a 3.5-acre drip irrigation system using a financial loan from the Drip Pool Programme. After installing the system, he was able grow cotton three weeks ahead of the usual planting season and has harvested 2,700 kilograms more than his brother Vajesang who is farming the same size and quality of land with the same agricultural inputs. Meanwhile, Magan Bhai a farmer in Sanosara village in Chotila Taluka, again in Gujarat, India also installed drip irrigation system as part of the Drip Pool Programme. In 2012-2013, India faced a poor monsoon season. However, Magan found his cotton production increased by 50% compared to the previous year. Last year, his income was INR190,000 ($3,147). But this year, that figure rose to INR285,000 ($4,720), and being able to plant a crop of beans gave Magan an additional income of INR120,000 ($1,978). He also experienced cost savings using less phosphorus fertiliser and saved INR32,100 ($529). And he reduced the number of labour days spent weeding and irrigation by 25% to 30%. Drip irrigation not only results in significant water saving, but also results in an increase of the yield with higher germination rates. Introduction of the drip means farmers don’t need to rely on the rainfall – and the early maturity of the crop gives a better return on the investment. The fertilizer-use efficiency also increases with a provision of application of fertilizers through drip irrigation.
  • 9. WORKING WITH SMALLHOLDER FARMERS – WHAT CAN BE DONE? COTTONCONNECT WATER REPORT – SEPTEMBER 2014 9 2.4 Research shows water benefits in organic cotton vs. conventional approach In 2011, C&A Foundation and CottonConnect supported the Water Footprint Network to review the environmental impact of organic cotton farming practices versus conventional practices. The study was designed to better understand the impact of cotton farming on freshwater pollution using grey water footprint (GWF) – the volume of water required to maintain the water quality according to agreed water quality standards - as an indicator. It studied two farm samples, one composed of 240 conventional cotton farms and one composed of 240 organic cotton farms in the states of Gujarat and Madhya Pradesh in India where around 40% of the cotton fibre used in C&A’s clothing is cultivated. It confirmed that conventional farming practices generally have a higher grey water footprint than organic farming practices. Yes, the conventional farms are able to produce 635 metric tonnes of cotton a year (versus the 577 tonnes of organic production), but “it does not justify the 5.5 times larger total grey water fooptrint (951.583 m3/year for the conventional farms and 30.703.437 m3/year for the organic farms),” says the report. “Organic farming practices showed smaller grey water footprint and therefore a lower impact on water resources, while having similar land productivities as in conventional farming,” it added. “An important reduction of the grey water footprint and therefore a more sustainable supply chain could be achieved by organizing farmer training, especially for those shown to be the main contributors to the overall water footprint.” The CottonConnect farmer training programme makes farmers aware of the volumes of pesticides and water they are using, how this relates to the crop yield and how to use more sustainable cotton farming practices. You can read the full details of the methodology and analysis of the study here: www.waterfootprint.org C&A Foundation Pioneering Farmer Training C&A Foundation is a founding supporter and partner for CottonConnect’s work with more than 130,000 farmers in India, Pakistan and China. “With CottonConnect, C&A Foundation is piloting financing schemes to give farmers greater access to drip irrigation technology. These new irrigation systems can increase yields by 30% and reduce water usage by up to 60%,” comments Leslie Johnston, Executive Director C&A Foundation. “We believe raising awareness of the benefits of organic cotton is important. It is the great standard to which we all should strive – given its proven environmental, social, and economic benefits. We already see how our support to this sector is contributing to improved livelihoods and healthier farming communities. And we aim to deepen this work, ultimately impacting hundreds of thousands of people who depend on cotton for their livelihoods. “C&A Foundation is proud to support CottonConnect in its work connecting retailers to cotton farmers, helping both to work closely together to create a sustainable cotton industry and better business for the future. There are many examples of the positive impact for the cotton industry and by sharing these stories, we hope more brands will be inspired to act.”
  • 10. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 10 ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE 3. Action from brands to take impacts to scale The activities and approaches for smallholder cotton farmers, supported by CottonConnect, prove that change is possible. In fact, results demonstrate that basic interventions at farm level can make a significant difference, environmentally, socially and economically, as smallholders reap the benefits of using less water while improving their crop yields. But now is the time to scale-up these activities so that these pockets of action at a project or pilot level are replicated and reinforced by not only hundreds of thousands of farmers, but by millions. However, challenges and barriers to the adoption of more modern and sustainable agricultural practices remain.
  • 11. ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE COTTONCONNECT WATER REPORT – SEPTEMBER 2014 11 These could potentially be overcome by international brands playing a bigger role in helping to build better relationships with their suppliers and to support the efforts of farmers that will build a more resilient supply of cotton via knowledge-sharing, education, training and improving access to finance. 3.1 Brands and Retailers Must Recognise the Business Risk and Be More Accountable The CDP’s 2013 Global Water Report suggests that companies are getting to grips with their water use, risk and impacts. The survey indicates that over 90% of the businesses that responded now have water management plans in place. But despite the vast majority of companies reporting that water represents a “substantive business risk”, most companies are primarily focused on managing water within their own operations – not along the supply chain. The CDP claims that “water stewardship activities are notably lacking, potentially exposing their company and investors to risks that could be mitigated”. The recent VOX Global/Pacific Institute study examining whether US companies are prepared for looming water challenges is consistent with the CDP data. Responding to the survey, 79% percent of businesses claim that they currently face water challenges, with 84% stating that they will face water challenges in the next five years. And many make the connection between water challenges and their bottom line, with almost 60% indicating that water issues are likely to negatively affect business growth and profitability. However, many respondents said they had no plans to increase the breadth and scale of their water risk management practices. The report claims that “nearly 70% of companies said their current level of investment in water management is sufficient”, which is inconsistent with the widespread belief that water challenges “will significantly worsen in the next five years”. Clearly, business recognises that water issues are important and pose a significant risk to their business. But the reality is that few are making plans to do something about it, particularly in dealing with the water challenges faced across their supply chain. If you are unaware of the impacts along the supply chain – or don’t know where they are – it is difficult to be accountable for dealing with them. It is up to brands to understand the challenges faced by their suppliers and to take action where it is needed.
  • 12. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 12 ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE BRINGING JOHN LEWIS FACE TO FACE WITH ITS COTTON FARMERS The UK retailer John Lewis has been working with CottonConnect to improve its relationship with its suppliers and increase traceability. In February, Stephen Cawley, the company’s Head of Sustainability and Responsible Sourcing paid a visit to some of the local smallholder farmers in India that are involved in a joint three-year farmer training programme. Cotton is the main raw material for John Lewis’ textile and apparel teams, and securing a sustainable and transparent supply in the future is vital. The programme sees the UK retailer work with local farmers responsible for producing cotton used in the manufacturing of its towels, bath mats and curtains, sold in stores throughout the UK. The programme helps to educate and train India’s conventional cotton farmers to move to more sustainable farming methods, with CottonConnect working with manufacturers, spinners, and farm groups to make changes at a farm level. A total of 1,500 farmers will be trained during the three-year period of the project, positively affecting the lives, livelihoods and employment of around 7,500 people. But this is also an opportunity for John Lewis to ensure security of supply, improve traceability to the source of the cotton fibre used in its products, and interact with the farmers at the end of the supply chain. Traditionally, the John Lewis buying teams operate through brokers in the cotton industry. But here, the cotton-buying team is brought face-to- face with farmers. John Lewis team welcomed “It was amazing to see the interaction between the retailer team and the local farmers,” explains Alison Ward, CottonConnect’s CEO. “The moment when the villagers met their customers responsible for turning the raw material into actual products was incredible. But when a commercial entity turns up in a village, the whole dynamic can change.” “We act as an independent third party, helping to build a new trade model; keeping it separate from the commercial conversation, helping to provide the right conditions to facilitate better understanding, greater transparency, working towards better livelihoods for the farmers.” So, what’s driving this traceability and relationship-building between brand and farmer? There’s no doubt that ethically-conscious and increasingly demanding consumers expect more from the companies they buy from, right across the high street. “John Lewis is an established and trusted brand, so it was natural for us to want to ensure transparency and integrity right across our supply chain and support the development of close relationships with our suppliers,” said Stephen Cawley, Head of Sustainability and Responsible Sourcing John Lewis. “The engagement brings benefits to the brand – we are helping to ensure security of supply, traceability to the fibre source, as well as having a positive impact on the social and environmental conditions of the farmers in India – which is crucial when such a large part of our manufacturing supply chain is based in that part of the world.” John Lewis team in India
  • 13. ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE COTTONCONNECT WATER REPORT – SEPTEMBER 2014 13 3.2 Improve Traceability Consumers are increasingly aware of the sustainability credentials of the brands from which they purchase products and services. A 2013 study by GlobeScan, SustainAbility and BBMG found that a majority of consumers are seeking to reconcile their desire for shopping and style with responsibility to the environment and society through their purchases. According to the report, ‘Rethinking Consumption: Consumers and the Future of Sustainability’, almost two-thirds of consumers globally say they “feel a sense of responsibility to society”. And two-thirds of consumers say they “have a responsibility to purchase products that are good for the environment and society”. And consumers say that they will pay more for those goods. A recent study by Nielsen found that 55% of global online consumers across 60 countries say they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. As household names, brands command huge brand loyalty and are ideally placed to raise consumer awareness of and demand for greener products by improving traceability and creating more effective communications strategies to explain their approaches to sustainability. The cotton industry needs greater collaboration between retailers and farmers to address major challenges and create a more sustainable industry. CottonConnect connects retailers with their cotton supply chain through bespoke programmes and technology and by providing strategic advice on supply chains for the future. This includes value chain mapping, analysing transactions from garment to farmer, connecting supply chains from farm to garment and the monitoring and evaluation of impacts. 3.3 Help Improve Access to Finance Many farmers need capital, usually in the form of loans, to be able to buy modern equipment, such as drip irrigation technology. CottonConnect, in association with C&A, International Finance Corporate (IFC) and IDH – the Sustainable Trade Initiative, launched the India Drip Finance Programme, in a bid to promote innovative and implementable solutions that solve the problem of accessing finance for drip irrigation in cotton cultivation in India. The pilot learning programme was designed to provide loans for the farmers to pay for drip irrigation apparatus. The loan was to be repaid by the farmer and the money returned to the programme. The learning programme found that while national level banks see the need to invest in farmers ‘at the bottom of the pyramid’ locally based banks are often too nervous to extend credit. Also from farmer perspective they needed to have the reassurance of support of medium term support (3 to 5 years), as they are often concerned about adopting new practices. Finding ways for farmers to access credit and empowering them – not just with information and knowledge, but with business skills too – is absolutely crucial. There could be multiple steps to this including: 1. Involvement of NGOs. Farmers trust the NGOs as they are local and the intermediary coordination remains at its best; 2. Government contribution to the reduce the intermediary process cost requirements that add up to the cost of the whole product; and 3. Collaboration between external agencies, as well as cotton fibre consumers, in funding the drip irrigation equipment as a loan managed with the sale of the fibres at the time of harvesting. An inclusive approach is required to embrace and train the poorest farmers, not just the already mobilised or educated farmers.
  • 14. COTTONCONNECT WATER REPORT – SEPTEMBER 2014 14 ACTION FROM BRANDS TO TAKE IMPACTS TO SCALE 3.4 Collaboration and Investment from Brands in Farmer Training is Critical Effectively scaling-up the activities and approaches outlined in this report will only be achieved through collaborative effort; the challenge is too big for any single organization to do it alone. The opportunity for collaboration to tackle cotton’s big challenges is significant. International development agencies, governments, businesses and NGOs must find ways to work together – to help find solutions to address the challenges and agree a vision for what a sustainable cotton industry looks like – and map the route to get there. By partnering with agencies of government, investors and funders, the efforts of smallholder farmers can be linked to wider watershed activities, thereby benefiting from and contributing to water management at a watershed level. Those invested in the cotton industry need to address the water challenge and learn how to support small holder farmers to produce cotton with less water. It is up to business to play a leading role and for the likes of CottonConnect to facilitate this collaboration. 4. Time for Action This report from CottonConnect outlines a number of activities and approaches working with smallholder farmers that are already successfully enabling a more sustainable cotton supply chain, as well as a number of recommendations for brands and retailers. But what can businesses do to help tackle the water issues that post a serious risk to growth and profitability in the coming years? This is a call to action for brands and retailers to step forward: 1. Understand and recognise the risk associated with water scarcity and security of supply. As water tables fall and pressure on farmers rises, it is time to get serious about the threat posed by this huge challenge to the cotton industry. 2. Map suppliers and develop better transparency and security of supply. Learn from brands working with a fully transparent supply chain, understanding the pressure points for suppliers, and working to eliminate the risk associated with cotton supply. 3. Take action to support smallholder farmer training programmes providing basic interventions. Educating and training farmers to adopt more sustainable agricultural practices is proven to reduced their water consumption by up to 30%. Helping them to access finance to invest in technologies, such as drip irrigation, can lead to water reduction of up to 60%. 4. Collaborate with others to help drive this supply chain sustainability at scale. Work with international development agencies, governments, NGOs and other businesses to develop innovative ways to transform the entire cotton supply chain at scale. 5. Share information best practice and learnings with your teams, with your colleagues across the industry, and with members of your supply chain, to facilitate support and investment to help secure a sustainable future for the cotton industry.
  • 15. 15 TIME FOR ACTION All pictures © CottonConnect COTTONCONNECT WATER REPORT – SEPTEMBER 2014 Farmers in farmer training workshop on more sustainable farming practices, India CottonConnect is a social enterprise pioneering a transparent and sustainable cotton supply chain from retailers to farmers to build a sustainable future for the cotton industry. • Connecting retailers to the supply chain and to cotton farmers, creating relationships, transparency and efficiency, delivering business value, reducing costs and building security of supply. • Improving farmer livelihoods – we help farmers farm better by supporting them with business skills, access to finance, knowledge and expertise in farming practices – which are better for the farmer and for the environment. • Sharing best practice – farmer education, farmers groups to share knowledge, and support knowledge of farming techniques, helping them to farm safely and sustainably. In the last four years, we have worked with 130,000 farmers and increased the land under sustainable cultivation by almost 300,000 acres. On average, we have helped to reduce the water usage of the farmers we have worked with by 20% (but in many cases as much as 30% to 60%). Get in touch to find out more about CottonConnect’s services – www.cottonconnect.org
  • 16. CottonConnect is a social enterprise pioneering a transparent and sustainable cotton supply chain from retailers to farmers to build a sustainable future for the cotton industry