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The world’s most popular textile fiber has been linked to slavery in Uzbekistan and thousands of farmers committing suicide in India. Indeed, programs such as the Better Cotton Initiative and Cotton Connect are doing remarkable work to alleviate cotton’s impact on human rights and the environment. And to their credit, more apparel companies — from Adidas to C&A — are incorporating more sustainable sources of cotton into their clothing lines. One company, however, wants to go even further in guaranteeing that its cotton comes from a reliable and responsible source.
PimaCott, owned by a large Indian supplier, says it has a solution. The company partnered with Applied DNA Sciences, an American biotechnology firm, to treat its cotton so that it can be easily scanned and identified. Molecules with DNA tags are added to cotton during the ginning process, so someone on a company’s supply chain team is able to track the authenticity of the cotton from the field to the store.
From a business perspective, this is critical for the Central Valley’s pima cotton farmers, who are subjected to far stricter environmental and labor standards in the Golden State than other countries, or even other U.S. states.
The problem is that consumers who seek textiles made from coveted Californian or Egyptian cotton can be misled by wayward suppliers. Last fall, Walmart and Target were nailed by lawsuits alleging the retailers mislead consumers about a line of “100 percent” Egyptian cotton sheets, made in India.
This technology shows promise, and could eventually help other organizations that are trying to scale fair trade or responsibly-sourced cotton. But it will take a while for DNA tagging to score widespread acceptance.
These tagged molecules need to be added to cotton at its point of origin. From the point of view of farmers, many of whom face thin margins and other risks such as bad weather or global slumps in commodity prices, DNA tagging could come across as yet another expense.
PimaCott says it is helping cotton growers with the upfront costs. And if farmers see the value in having their crops verified and prevented from becoming blended with lower-grade cotton, we could see an industry transformed — and down the road, witness improved traceability in other agricultural supply chains as well.
Li & Fung Limited outlined its next Three-Year Plan (2017-2019) focused on speed, innovation, and digitalisation to create the ‘Supply Chain of the Future’. The company has also announced its annual results for the year ended December 31, 2016. In the logistics network, the company continued double digit growth with e-commerce logistics outperforming.
The new Three-Year Plan ‘Building the Supply Chain of the Future’ represents the company’s continuing business transformation with the goal of creating the supply chain of the future, helping its customers navigate the digital economy.
For the full year 2016, the company reported resilient results against a challenging macroeconomic environment and ongoing disruption at retail. Excluding the impact from the strategic divestment of the Asia consumer and healthcare distribution business in June 2016, total turnover decreased by 8.3 per cent to $16.2 billion on a like-for-like basis. Reported 2016 total turnover decreased by 11 per cent to $16.8 billion.
Sustained efforts to improve operating efficiency and productivity through the use of technology and streamlining of the cost base reduced operating costs. Core operating profit decreased 17.7 per cent to $408 million on a like-for-like basis. Turnover from the trading network continued to be affected by a reduction in order volume, deflation and relative currency weaknesses against the US dollar and declined by 8.7 per cent on a like-for-like basis. However, in the logistics network, the company continued to grow profits organically through increased market share with existing customers, new customer contracts, and geographic expansion.
Commenting on the future outlook, William Fung, Group chairman of Li & Fung, said, “While geopolitical and economic realities are in flux, this uncertain environment also presents opportunities for Li & Fung. Our breadth and depth of experience in global supply chain management, gained over 110 years, together with our extensive global network of vendors will be a competitive advantage.”
The European Union has suggested Bangladesh comply with the ILO-recommended labour right standards by mid-June 2017 to avoid “consequences” with regard to its current trade privileges in the EU. The suggestion was put forward by a four-member EU delegation that wrapped up its three-day Bangladesh tour.
The EU team also stressed on the need for a uniform labour law for all workers -- including those employed at factories in export processing zones. The team pointed out that the EU and other partners of the Sustainability Compact would review the progress Bangladesh made in the RMG sector in terms of ensuring workplace safety and labour rights.
Following the Rana Plaza disaster in April 2013, Bangladesh signed the Sustainability Compact with the EU in September that year, committing itself to responsible business behaviour and improvement of workplace safety and labour rights.
EU is currently examining the whole issue of fairness in garment supply chains across the globe. “The Accord and Alliance are encouraging examples of what can be achieved when companies, government and workers pool efforts to improve standards.”
The delegation led by Arne Lietz, a member of the EU Parliament, met the prime minister, the speaker of parliament, the commerce minister, the labour minister, leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and labour unions, representatives of brands and retailers, and also ILO officials.
Lietz said, “We felt a readiness and goodwill from all parties to engage on this issue and are hopeful this will translate into concrete progress before the May review of Sustainability Compact in Dhaka and the Geneva ILO Conference in mid-June. As members of the Progressive Alliance of Socialists and Democrats in the European Parliament, our engagement with Bangladesh, as with other countries, is guided by our core values where respect for human rights and labour rights, in particular freedom of association and collective bargaining, ranks high. That is why the full implementation of the Sustainability Compact is so important in our view.”
Bangladesh raked in $18.68 billion from its exports to the EU in fiscal 2015-16, which was 54.57 percent of the total receipts for the year. Of the $18.68 billion, $17.15 billion was from apparel shipments. The EU currently accounts for more than 62 percent of Bangladesh's garment export receipts in a year.
This year, Arizona could plant more than 150,000 total cotton acres as California might push past 250,000 acres. California and Arizona are poised for significant increases in cotton acreage in 2017, putting the U.S. on track for a total of 11 million acres of the fiber crop.
Preliminary estimates from California and Arizona suggest acreage increases in the neighborhood of 25-30 percent for Arizona and upwards of 20 percent in California.
California cotton plantings for 2017 could include 186,000 acres of Pima and 70,000 acres of Upland varieties. Reports from the various seed companies suggest some cotton seed is sold out or in short supply in California. If this holds, this will be a 22 percent increase for Pima acreage and 6 percent boost in Upland acreage.
Arizona last year reported over 129,000 total acres of cotton, according to Leighton Liesner, director, Arizona Cotton Research and Protection Council. California produced nearly 219,000 total acres of cotton in the same period.
If projections hold, total cotton acreage in Arizona could climb to between 160,000-170,000 acres. It is expected that extra-long staple Pima varieties could account for a little over 13,000 acres of that – unchanged from last year.
Bureau Veritas Consumer Products Services (Bureau Veritas), leaders in testing, inspection/audit, advisory and certification services, have announced an exclusive partnership for the next 5-years with the Cotton Egypt Association (CEA) to provide conformity assessment services to verify that the materials are traceable to confirmed lots of true Egyptian Cotton at any stage of production.
The Egyptian Cotton Logo is a mark that helps restore faith as to the authenticity of products bearing the claim, Egyptian Cotton. It demonstrates that the CEA has certified that the product is true Egyptian Cotton by conforming to the requirements in the Factory Audits and Testing services and is ready for retail. The exclusive agreement with Bureau Veritas brings global scale and reach to the scheme thanks to Bureau Veritas' leadership position within the retail / consumer goods marketplace with test labs and auditors worldwide.
Bureau Veritas will be providing the services of Factory Audits, Retail Surveillance and Information Managment to companies making or selling products with the Egyptian Cotton Logo.
Mark Agius, Senior Vice President for Bureau Veritas Consumer Products Services in Europe, Middle East & Africa commented, "This exclusive partnership with CEA for the next five-years takes our support for producers and buyers of Egyptian Cotton to the next level, enabling retailers, brands and their supply chain to easily access this scheme."
The ASBCI Spring Conference 2017, titled DOING THE RIGHT THING? Best practice for sustaining our people, planet and profits will take place on 5 April 2017 at the Marriott Hotel in Peterborough, UK. Ten years ago, a leading retailer Marks & Spencer launched its Plan A placing sustainability on top of the global fashion industry agenda.
Since then the majority of big brands and retailers have implemented their own robust ethical and environmental sustainability programmes with the collective objective of protecting people and the planet. The best sustainability practices, processes and products are reducing waste, transport and material costs and boosting brand image, efficiency, customer loyalty and share prices.
The ASBCI sustainability conference has some expert speakers with experience of the most effective and commercial, sustainable initiatives and innovations lined up like Rakesh Vazirani, Director – Product Traceability & Environmental Information Management, TUV, Hong Kong, Keynote speaker Mike Barry, Director Plan A, Marks & Spencer. Prof Tim Cooper, Professor of Sustainable Design and Consumption, Nottingham Trent University, Robin Anson, Editorial Director, Textiles Intelligence, and Graham Burden, Director, Sustainable Textile Solutions.
The second part of the conference, will have Elaine Gardiner, Sustainability Manager, Berghaus, Guido Rimini, Head of Marketing, Apparel Europe, Freudenberg Performance Materials Apparel SE & Co., Ross Barry, Lawrence M Barry & Co and finally, Tara Luckman, Fabric & Sustainability Manager, ASOS.COM
The Association of Suppliers to the British Clothing Industry (ASBCI) was formed in 1992, arising from the British Interlining Manufacturers Association. Since 1992, the ASBCI has grown from 20 members to over 100 including some of the most prestigious names within the clothing and textile industry, forming a huge pool of expertise.
The Association organises a series of specialist conferences and seminars throughout the year on various key subjects. The ASBCI is concerned with new technology, new ideas and new care labelling standards; and has an effective representation of members' interests in the UK, European and International standards committees
Caroline Rush CBE, CEO of the British Fashion Council and Professor Christopher Moore, Director of the British School of Fashion, Glasgow Caledonian University launched the British Fashion Council’s British High-End Manufacturers Database. The national database of UK-based manufacturers aims to make it easier for designers to form supply chain relationships and reach production units. The British High-End Manufacturers Database is the first milestone of 2017 for the BFC’s Positive Fashion initiative.
In March 2015 the BFC and a working group comprising of M&S, UKFT, Creative Skillset, The Alliance Project and Centre for Fashion Enterprise worked alongside independent specialists in the sector to launch the High-end and Designer Manufacturing Report. The need for a database of audited UK manufacturers was highlighted as a direct result of this report, for which research was undertaken by Glasgow Caledonian University and Oxford University.
The Database is free to use and will sit as part of the BFC Designer Fact File, a dynamic designer business learning platform providing insights and training across a wide spectrum of topics. The topics covered are tailored to a range of business stages, from start-ups to established brands, and content is provided by leading industry professionals.
Throughout 2017 and beyond the BFC looks to celebrate Positive Fashion best practice in the industry by direct example and through facilitating processes for change. Through the Positive Fashion initiative the BFC hopes to encourage designer businesses to prioritise sustainability and ethical practices. The three key focuses for Positive Fashion in 2017 are Sustainability, Diversity & Industry Education (including model health) and Local Manufacturing and Craftsmanship.
"Textile industry is an integral part of the global economy and the quality of life for citizens. Knowing the crucial impact it has on economy, it makes perfect sense for the government to offer the most lucrative policies towards its growth. Government initiatives are an excellent way to revitalise textile manufacturing, create jobs, promote the purchase and support of domestic textile and apparel products, and protect the livelihood and stability of the industry and economy."
Textile industry is an integral part of the global economy and the quality of life for citizens. Knowing the crucial impact it has on economy, it makes perfect sense for the government to offer the most lucrative policies towards its growth. Government initiatives are an excellent way to revitalise textile manufacturing, create jobs, promote the purchase and support of domestic textile and apparel products, and protect the livelihood and stability of the industry and economy. Here is a look at some of the most lucrative and supportive government initiatives taken across the globe to boost growth of textile industry:
Nigeria
In February 2017, the Nigerian government announced the allocation of $162 million for revitalisation and recovery of domestic textile industry. These funds will be routed towards stimulating growth in the industry, creating jobs, encouraging the purchase of locally-made textiles and clothing, and combating the threats of counterfeit and smuggled textile goods. The allocation will also be used to improve infrastructure, especially access to electricity, which is key for textile manufacturers. It is also expected to help increase cotton production and quality.
India
The New National Textile Policy, announced in 2016 by the NDA government, is a package worth $894 million. This package supports labour reforms in relevant sectors such as yarns, made-ups, and fabrics, and is expected to help the textile industry in India outpace competitors like Bangladesh and Vietnam. It will increase textile exports and is expected to create millions of new jobs. India’s Make in India initiative, which promotes job creation and manufacturing within India, will also help to boost the success and growth of India’s textile industry.
Malaysia
Malaysia’s Third Industrial Master Plan, which will be in effect until 2020, is encouraging the growth of the textile industry. The plan focuses on the growth of industrial and home textiles, functional fabrics, high-end fabrics and garments, and the establishment and improvement of support facilities and services like design houses, fashion centres, and specialised dyeing and finishing facilities.
The USA
Last year, former US President Barack Obama announced the establishment of a new fibres and textiles manufacturing innovation hub in Cambridge, Massachusetts, and more than $2 billion in manufacturing research and development investments. The Revolutionary Fibers and Textiles Manufacturing Innovation Institute is combining $75 billion in federal resources and USD 250 million in non-federal investments to research and produce innovative textiles with novel properties. This initiative is creating textile industry jobs, continuing the promotion of the industry’s recovery from its decline in the 2000s, and promoting domestic textile printing, textile manufacturing, and textile manufacturers.
In recent years, the printing and dyeing sector has been negatively affected by Chinese government's intensified environmental regulation so end-users were burdened with hiking printing and dyeing cost. On the other hand, dope-dyed chemical fibre with its low cost and eco-friendly property has grown rapidly. Dope-dyed virgin PSF, for example, has developed and gained around 15 per cent total capacity of virgin PSF in 2016. And among the non-conventional varieties, the black one takes the lion’s share for around 60-70 per cent. Compared to conventional virgin PSF, this variety has shown good cost advantage. Black virgin PSF basically trended likewise with semi-dull virgin PSF in 2016. However, the price spread between the two sustained high at around 1500-2300yuan/mt. At the same time, black rose 1500yuan/mt or 18 per cent, showing this variety has a better anti-risk ability compared with the cost-sensitive conventional PSF which hiked around 2000yuan/mt or 33 per cent. The fundamental reason for the development of doped dyed virgin PSF is its low cost and eco-friendly properties. Compared to 6000yuan/mt cost of printing and dyeing for conventional spun yarn and grey fabrics, downstream plants will save around 4000yuan/mt using black virgin PSF as the feedstock. Not to mention that their production is free from political influence such as environmental regulation. Thus nowadays, the whole industrial chain from chemical fiber plants, spinners to fabrics plants, all are devoted to proclaiming the dope-dyed product to cater for the idea of environmental protection.
The Pakistan Cotton Ginners’ Association (PCGA) has submitted budget proposals to the Federal government demanding a bailout-cum-incentive package. This comes as no surprise, since the annual cotton production target has been missed again and the area under cotton has declined sharply by 16 per cent.
Over the last couple of years, Pakistan has seen abysmally low cotton production. At present, cotton arrivals are 10.5 million bales, despite an increase over last year’s 9.7 million bales, it is still short of the initial 14.1 million target that was revised to just 11 million bales later. The textile economy has been suffering from shortage of raw material on top of all its other miseries.
Ginners have demanded a National Cotton Policy though how this would tie into the broader Agriculture Policy that Punjab is currently developing is uncertain. The development of such a policy would be a welcome move though given the country’s track record, it should be taken with a grain of salt.
