A Snapshot of Crop Diversification in Organic Cotton Farms

2009-10

A Snapshot of Crop Diversification in Organic Cotton Farms This discussion paper looks at the benefits of crop diversification using case studies to illustrate emerging practice. A closer look at Africa, India and Latin America is carried out to explore some of the themes, issues and opportunities for organic cotton farmers. By Liesl Truscott, Doraliz Aranda, Prabha Nagarajan, Silvère Tovignan and Alfonso Lizarraga Travaglini

Table of Contents What this report is about ............................................................................................................... 3 Introduction ................................................................................................................................... 4 Part A: The big picture – What is an organic farm system? ............................................................ 5 Benefits of crop diversification ................................................................................................... 8 Environmental and Agronomic Benefit .................................................................................. 8 Social Benefit .......................................................................................................................... 9 Economic Benefit.................................................................................................................. 10 The dinner table... .................................................................................................................... 11 To market... .............................................................................................................................. 11 Adding extra value... ................................................................................................................. 15

„Cotton farm, Crop rotation & Intercropping‟ (By Yuri Fiuralifa Zeña Coronado, age12 – son of organic cotton farmer in APAEM, Peru)

Part B: Stories from the Regions................................................................................................... 17 Part C: A snapshot of crop diversification in Africa, Latin America and India ............................... 23 Observations from Africa ......................................................................................................... 27 Observations from India ........................................................................................................... 28 Observations from Latin America ............................................................................................. 29 About crops .......................................................................................................................... 31 About harvest ....................................................................................................................... 37 About product and sales ....................................................................................................... 41 About opportunities ............................................................................................................. 46 Parting thoughts... ........................................................................................................................ 50

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„Cotton farm, Bio Application, Yellow pest trap‟ (By Jordán Eliberto Ballena Trujillo, age 11 son of organic cotton farmer in APAEM, Peru)

What this report is about Income from the sale of certified organic cotton is obviously fundamental to small scale organic cotton farmers and their family’s quality of life. However, other ways to generate income and improve livelihoods comes from the ‘required’ organic farm system. Organic farm systems require the use of other crops (such as legumes, cereals, and sunflowers) to maintain the organic system (e.g. to improve soil fertility, control pests and so on). Just as important are the varieties of food these crops bring to the farmer’s dinner table. This discussion paper provides a closer look at crop diversification and the benefits diversification gives the organic cotton farmer; environmentally, socially and economically. It gives the reader some insight into the role these crops play and the uses they have in terms of soil fertility, pest management, food security, and local, regional and global markets. A look at future and emerging market opportunities is also here for consideration.

Livelihoods for organic cotton farmers can be defined and improved in a number of ways: •

There is enough food available for the family table including a variety of food required to meet the family’s nutritional needs.

•

There is a good supply of high quality ‘safe’ food (staples and fresh produce) to local markets, i.e. the contribution the organic cotton farmer makes to their community’s food and nutritional needs (and the income it generates).

•

Emerging regional organic markets are utilized. Regional markets can provide higher prices for some crops, if there is a demand for organic. Big cities and supermarket chains are growing centres of organic. These markets may also provide opportunities for growers to invest in further processing such as pressing, juicing, pulping or drying (of relevant crops) either on the farm or through local business partnerships. This value adding, without quite the same pressure on quality and formfilling that export markets demand, gives farm groups, local entrepreneurs and local industry a boost.

•

Tapping into additional export markets may be beneficial and prices can even prove to be competitive with organic cotton. Investing in growing and certifying organic farm system crops such as sesame may strengthen income security and reduce the risk associated with fluctuating prices, poor seasons and so on.

The aim of this discussion paper is to raise awareness of: 

The role specific crops play within the organic cotton farm system.



The importance of these crops to the small scale farmer’s family food and nutritional security.



The opportunity crop diversification provides to improve income and reduce financial risk.

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Introduction For the past 2 years Organic Exchange has been working with organic cotton producer groups to gain a better understanding of the organic cotton farm system in its entirety, i.e. what happens on the farm besides the production of organic cotton. It is well known that to grow cotton organically a holistic approach to managing the production within a ‘farm system’ is required 1. First, to grow good quality, high-yielding organic cotton without the use of artificial pesticides and fertilisers or GMO, the farmer must look for other ways to manage soil fertility and pest (weed and insect) outbreaks. To a large extent soil fertility and pest control is achieved through the growing of rotation and associated crops. In addition, besides supporting the production of the primary crop (cotton), the farm system plays a valuable role in meeting nutritional and social needs such as household food security, health, safety, and can make a contribution to local and traditional diets for the surrounding neighbourhood. These advantages are fundamental to the small scale farmer and his or her community. There is also evidence that organic farm systems have a role to play in improving gender equality and food sovereignty.

conditions are another reason to diversify income and have other market options in hand. This discussion paper is in three parts: Part A provides an overview of the role and benefits of crop diversification, challenges and opportunities for the organic cotton grower, a look at further processing and value-adding, market scenarios and a closer look at some of the popular farm system crops. Part B: Is a short collection of stories highlighting some of the successful crop diversification projects in Africa, organic market scenarios in Latin America, and business development in India. Part C: Provides a follow up to the OE Farm Systems Crop Baseline Report published in 2009. Drawing on the results of a further survey, Part B of this paper provides a closer look at the farm systems of organic cotton farmers in Africa, Latin America and India; crop diversification, issues, challenges and views of market risks and opportunities.

It is now becoming increasingly clear that there are significant financial advantages to the growing of a range of crops (a diverse farm system). The plummet in the organic cotton market experienced in 2009 2 certainly points to the advantages of ‘spreading risk’ by investing in a diverse range of crops and markets. Unpredictable weather and climatic – as well as financial –

1 2

See Van Elzakker’s description of a farm system - over page. OE Farm and Fibre Report, 2010

Page |4 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Organic cotton farm with King Grass barrier in Oro Blanco, Peru (Photo: Alfonso Lizarraga)

Sunflower barrier in organic cotton farm, Campinas Brazil (Photo: Alfonso Lizarraga)

Figure 1: The organic cotton farm system (Ferrigno, S., 2009)

Beneficial & Harmful Organisms (fungus, mites, insects, birds, mammals & others)

Part A: The big picture – What is an organic farm system? Organic cotton cannot be grown on its own (as a monoculture). It requires a variety of crops performing special roles to support the organic nature of the farm system. This means each crop grown on the farm has a role to play in supporting the viability of the organic farm system to produce cotton – and thus the livelihood of the small scale farmer. The role each crop plays will vary – for example it might contribute to soil fertility (rotation crop), help control pests (trap crop), keep the family food secure or be a valuable cash crop. Food for the family, and further income from local, regional or export market contributes to the socio-economic viability of the farm system. Van Elzakker3 says that cotton must be grown in a farm system. In organic cotton, this is an essential basis for successful, productive organic cotton growing – other crops provide green manure, tools for pest management (by creating traps, providing ingredients, etc.). The farm system includes crops grown in rotation, livestock, and other products both farmed and wild. It is a systems approach that does not lend itself well to a monoculture.

Association Food - Beans - Maize

Animals

Cash - Sesame

- Bees & honey - Cows & goats

Crop Rotation Food -Maize - Beans - Lentil - Vegetables

COTTON Border (useful plants) - Carob - Sunflower

Periphery Food Cash - Cassava - Coffee - Banana - Mango

Soil (fungus, lichens, mites, insects & others)

Van Elzakker suggests the following quick formula for the organic farming system: 'The use of locally adapted varieties + the reduction of nutrient losses + the use of locally available organic material and green manuring + a wide rotation + fostering natural balances + mechanical and manual weed control = no need for synthetic inputs'.

Crop rotation schedule, BioRe, Tanzania (Courtesy: Saro Ratter) 3

Van Elzakker, B (2009) Agro Eco, Louis Bolk Institute, The Netherlands

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Cash - Sesame -Groundnut -Soya -Sweet Potato

Role of crops in the cotton system Organic cotton farms produce a wide range of other crops as part of the farm system. These crops have a role to play in maintaining agronomic, human and animal health. System crops are grown in rotation with cotton, intercropped, on field boundaries, or are growing wild. The following list provides an overview of these roles and examples of the types of crops fulfilling them. Crop role Crop Rotation

Overview of crop role Examples of crops Crops grown in the same area in succession to avoid the build-up of pests that can occur when one species is continuously cropped. It balances fertility demands of various crops to avoid depletion of nutrients. Replenishment of nitrogen is achieved through the use of green manure in sequence with cereals and other crops, improving soil structure by alternating deep and shallow-rooted plants.

Intercropping

T he agricultural practice of cultivating two or more crops in the same space at the same time (Andrews & Kassam 1976). Intercropping may benefit crop yield or control of some kind of pest, or may have other agronomic benefits.

Trap crop

A trap crop is a plant that attracts parasitic insects away from attacking nearby crops. Trap crops can be planted around the circumference of the field (border crops) to be protected, or interspersed among them, for example being planted every ninth row.

Border crops

These are crops planted around the circumference of the field to be protected and often used as trap crops to attract pests from the cultivated crop.

Periphery and plantation

Crops that may or may not have a direct benefit to the production of cotton. They can serve a purpose such as provide shade and cover to the soil, or keep the microbial activity in the soil constant or simply be crops grown on the farm for other reasons.

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Below are examples of five different crop rotation sequences for organic cotton farm systems (Eyhorn, F. Organic Cotton Crop Guide). As is evident in the diagram there is a wide range of choices. Farmers tend to select crops that work well for their ecological conditions and are most likely to contribute to the local diet.

or

Winter Crops

or

or

Winter Crops

Vegetable

or

Sugar Cane

Winter Crops

Diverse Rotation (from Tanzania) Rotation with herbal plants (from Egypt)

Year 3

Winter Crops

Pulses & Cereals

Year 2

Winter Crops

Year 1

or

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Benefits of crop diversification Organic farm systems that involve good crop diversification deliver a number of environmental, agronomic, social and economic benefits. Environmental and Agronomic Benefit Crop diversification is the key to good organic farming; it is a major substitute – and clearly more environmentally sound option - for the use of chemicals to maintain soil fertility and control pests. Other environmental benefits include a contribution to local biodiversity (especially where wild and indigenous plants are encouraged to grow). There is some opinion that crop diversity has a positive impact on climate change through the ability of local flora (as opposed to monocultures) to hold carbon thus generating less CO2.

Natural fertilisation, Parsapada, India (Photo: Genus a.b)

Organic farming is about creating an agro-ecosystem that stabilizes itself (Photo: Helvetas)

Organic compost prepared in village centre, Mali (Courtesy: Helvetas)

Cotton & Maize in organic cotton farm, Northeast Brazil (Photo: Alfonso Lizarraga )

Soil fertility is the foundation of sustainable and productive organic farming. When soil is well managed, pest pressure is reduced, water use is optimised and yields will improve for all crops grown in the rotation. To be sustainable and to enable organic cotton production to grow to meet demand, soil fertility has to be a priority for farmers and farming projects. Soil fertility and its management require specific approaches in organic production, including: 

using natural fertilisation methods



practices such as crop rotation and association



elimination of chemical fertilisers

Organic soil fertility management thus emphasises the use of practices that systematically introduce nutrients into the system in natural ways 4.

4

Monday, P. and Lizarraga, A., Soil Fertility Management in Organic Cotton: an overview, Forthcoming, Organic Exchange: O'Donnell 2008

“Organic farming... Improves health & minimizes air, water & soil pollution. 20% water can be saved. 0.25% Organic Carbon can be increased with help of Organic farming. It helps to create a good ecology” Patel. H, Agrocel, Interlaken 2009

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Social Benefit Organic farming generally and crop diversity specifically are important factors in improving livelihoods. Food security can be improved by the production of food crops as part of the farm system or where food crops (fruit and vegetables) are grown within the cash crops specifically for household use.

Organic cotton harvesting, Adec/Esplar, Brazil (Photo: Pedro Jorge Lima)

Organic and Fairtrade help build small school, Mali (Courtesy: Helvetas)

Besides a more reliable supply of food, other social benefits can be found. Crop diversity allows for a more varied approach to farming generally – household vegetable patches are more likely to be planted and maintained by women. In fact, organic farming often appeals to women – the range of crops and the different styles of harvest means that some crops are more appropriate (than others) for women to be involved or are considered ‘women’s crops’ such as shea. Cutting out dangerous chemicals from the farm system also contributes to increased participation by women. Pesticide application is heavy and hazardous work. Crop choices, issues of food sovereignty and income sharing are potentially better handled. Income directly reaching women tends to go towards meeting family needs such as schooling.

Part of a classroom built with Organic and Fairtrade premium, in Yobodoho, Aklampa, Benin (Photo: Silvere Tovignan)

These benefits are reported by organic cotton farmers however there is no guarantee that organic farming families are always experiencing social benefits or are food secure, all of the time. Organic and Fairtrade premium help build store house for organic fertilisers (Courtesy: Helvetas)

Page |9 (Courtesy: Helvetas) A Snapshot of Crop Diversification in Organic Cotton Farms 2009

(See article by Dr M. Anderson ‘Women, hunger, and food sovereignty’ at http://www.foodsystemsintegrity.com/about_us)

Economic Benefit Most of the farms producing cotton for export are built around the production of this cotton, i.e. cotton is their primary crop. However, cotton is not the only crop on the farm with financial benefits. The crops grown in rotation or associated with the cotton growing can also be significant income earners – especially if they are sold with an organic premium. If the farmer can sell several crops, the overhead cost share (for extension 5, certification, management etc.) for each crop is reduced, making the products more competitive in the market. The same extension system that was primarily built to support farmers in growing their organic cotton in a good way can also cover the production of maize, cassava or chillies. Crop diversity also helps the farmer reduce risk - if one crop fails or market prices drop, other crops can compensate for the loss 6.

Poster on women‟s self help group in Makasari, India (Photo: Genus a.b)

One way of maximising economic benefits in a sustainable (ongoing) way is through a farm group’s participation in relationship-based value chains7. A well established value-chain (either with or separate from their cotton arrangements) can provide the farm group with the security to put greater investment into crop and market diversification.

“Organic Farming is not only farming but it is the way of a Better Life. It should be balanced instead of market oriented. Entire family should be convinced and be involved. Community development should occur through sharing the organic farming experience.” Patel, H. Agrocel, Interlaken, 2009

5

Support system for farmers’ incl. training, internal control, technical advice, marketing... Adapted from the Organic Business Guide, 2009. 7 The journey a product takes and the value it gains from production to final consumption. 6

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Farmers use cattle to till soil. Men & women walk behind to drop seeds down wooden chutes into ploughed land (Courtesy: Zameen Organics) Meatu has the highest cotton production in Tanzania but 42% of children under 5 suffer from chronic malnutrition (Courtesy: Saro Ratter, Consultant for BioRe)

The dinner table... Discussion8 with small scale organic cotton farmers suggests that at least a small amount of what they grow is kept for their own needs. Organic farmers tend to be, in general, reasonably self-sufficient in growing food for their domestic needs, the amounts spent on ‘topping up’ is reserved for ‘luxury goods’9. However, this is not always the case and varying or unpredictable circumstances can have a severe impact on food security. In financial emergencies, farmers tend to use their food stocks in lieu of cash10. Farmers usually keep a good percentage of their rotation and associated crops (their staples), such as rice, maize, beans and wheat for their own consumption – this will be reflected by the region they live in and the favoured cuisine. For example: corn, maize, and millet in both Latin America and Africa, and in India we see rice, wheat, maize, and jowar. Research suggests that the majority of plantation fruit such as bananas and mangoes are eaten at home. Some quantities of oil seed, nuts, vegetables and herbs e.g. sesame, soya, groundnuts are also retained. Food crops entering a supply chain should not be encouraged if it compromises food security – for the family, and the surrounding community. There may be some opportunities, in some circumstances, for farmers to move a portion of the crops they are reportedly not selling (or eating) - for example mangoes and bananas - into a profitable business venture without upsetting food security.

8

Discussion held with OE Regional Farm Directors and through Farm System Crops surveys (08 and 09) 9 OE Closer Look at Sustainable Development on Organic Cotton Farms 09-10 (KPI report) 10 Reported by OE Regional Director India and Shell Foundation Report 2009

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Oil, Nuts

Fruits, vegetables

Lentils, Beans, Grains

To market... From the discussions and research OE has carried out over the past few years it is clear that when a Farm Group is investing successfully in a variety of markets this is the exception rather than the norm. Harvests that end up in the local market almost never fetch a price that reflects the ‘quality’ that growing organically arguably provides (and demands in more affluent societies). Nevertheless the local market is important for local food provision and organic food is appreciated as better-tasting and ‘safer’ due to the absence of chemicals used to grow it – making the organic product the one that sells. 11

Figure 2 : Characteristics of local, regional and global markets for organic products

Mainly staple food (rotation crops), with little or no organic premium

Local rural markets

Mainly fresh produce for urban centres; possibly with some organic premium

Regional urban markets

Local market sales, Africa (Photo: Simon Ferrigno)

Mainly export of commodities, with formal certification, organic and/or fairtrade premium

Global markets

Logistics, quality requirements, premium, competition

Local market sales, Africa (Photo: Simon Ferrigno)

11

Figure 2 is from the Organic Business Guide 2010

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Direct to local markets: Farmers sell their cotton through the marketing board of their Farm Group. Occasionally the Farm Group will manage the supply chain of other products to export. However, farmers will independently sell their other cash (rotation and associated) crops into their local market and usually at conventional prices i.e. for what they can get in competition with other crops sold in the same market and with no ‘premium’ for organic. These crops include cereals, grains, beans, seed-oils, and some fresh fruit and vegetables, herbs and spices.

Figure 3: Local supply chain

Local Supply Chain

Matching your product to the market...

Producers

Local Retailer Neighbour (e.g. NGO, small group, local shops etc)

Wholesale through Group

Big Retailers (e.g. Supermarket)

Small Retailers

Patel, H., Agrocel, Interlaken, 2009

Companies involved in export often do not, or do not like to operate in local or regional markets. The local market is often a different range of products from the export market. Sometimes there is an overlap though, and thus the opportunity to increase income diversity. The Organic Business Guide provides examples of farm groups in Africa successfully matching their products to market demand: In Mali, dried mangos are going for export (some to the local market), first-grade fresh mangos are mainly sold in regional markets (some are exported), and the remainder goes for juice sold in regional urban markets. In Uganda, pineapples can be exported fresh or dried to Europe, while some truckloads of fresh pineapples are sold to the juice market in Kenya. For honey producers in Tanzania it turned out to be more profitable to sell to the Kenyan market (Regional) rather than to export to Europe. Source: Organic Business Guide, Helvetas /OFCC

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Managing supply and demand In many internationally traded commodities, such as cotton, demand never seems to match supply. It is obvious that when supply is low, prices are high, and vice versa. Particularly in smaller but growing markets, the relation of supply and demand may change rapidly. Prices may be high one year, but when another major producing country starts to harvest, then the prices drop sharply (see the OE Farm and Fibre Report 2010). There are a number of ways farmers can build up a buffer: •

Build strong relationships with different types of buyers that cater to different retail markets and processing industries.

•

Sell products in different countries on two different continents.

•

Sell part of a product right after harvest but have the facility to store part for six months.

•

Always have a fall-back market for products in local and regional markets.

•

Grade products and use the different qualities for different market channels (e.g. first grade fruits for fresh export, second grade for drying, remaining for juice).

•

Find a market for by-products (e.g. for cotton seeds).

•

Diversify production. Source: Organic Business Guide, Helvetas /OFCC

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Direct to domestic traders: A smaller number of cotton system crops are reaching the domestic market. In Latin America crops such as cocoa from Peru, and honey from Paraguay have a regional presence. In Africa, some sesame and soya is sold for domestic use (but is largely exported). Sales are either made by the Farm Group or the individual farmer, and are likely to receive a higher price than locally – although they do not always receive the organic ‘premium’. In India, the domestic market is largely under-utilised. A small number of Farm Groups are investing in the processing and selling of value-added products domestically i.e. dhal, atta, oils, and spices to supermarket and other retail chains in the bigger cities. The export market: A limited number of products are exported to the North. However, the export market is probably more beneficial right now than the domestic one. For obvious reasons there is a greater appetite and ability to pay organic (and/or fair-trade) prices in the North, although this may be changing as emerging economies begin to impact on societies in the South. High-value, high-demand products coming off organic cotton farms and reaching the North include organically certified sesame, soya, tapioca, sugar cane and canola. For many developing countries, export markets still provide the most promising opportunity for obtaining a reasonably high price. However, requirements in terms of logistics, quality management and formal certification are also the highest here. In addition, there is competition with other countries that produce the same products. A pure export focus with only one product is therefore risky. It is often a better strategy to sell different products in different markets (local, regional and international).

cleaning

pressing

packaging

Sesame oil

Adding extra value... It is usually recommended that farm groups get the basics right first, i.e. the production of good quality crops, before attempting to value add or further process. In addition a good relationship between the farm group (cooperatives, companies) and a buyer in the North is likely to improve the chances of successful value-adding on a large scale. A secure grower-buyer relationship and steady business can help in getting financing, for developing the right equipment and product, and in securing at least one market. Some very good examples exist of such cooperation that has even led on to new, innovative products.

processing

Shea butter

processing

Vegetable (soya) oil

processing

Groundnut oil

“There are plenty of new crops out there which we could farm. For instance alfalfa, vegetables in general, herbs, picingallo corn (popcorn)”

pressing

Canola oil

Prorganica, Paraguay

decapping

Whilst value adding on organic cotton farms is the exception rather than the norm, there is some basic processing taking place: cleaning, drying, pressing, processing and packing... and farmers are showing an interest to explore further.

Dried banana

drying

Maize/corn feed

packaging

Honey

Processing

Cocoa beans

drying

drying

Drying

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fermenting

Bissap juice

Value addition does not necessarily mean investment in processing facilities. Other ways include: •

Improving quality

•

Adding certification (organic and/or fair trade)

•

Simple processes like cleaning, grading, fermentation and drying

•

More complex processes like extraction, ginning, pulping or canning.

Post harvest care to soybean in Africa (Photo: Silvere Tovignan)

Organic Business Guide, Helvetas /OFCC

Sorting spring onions, India (Photo: Prabha Nagarajan)

Harvesting sesame (Courtesy: PAN UK)

Traditional cleaning of pulses, India (Photo: Prabha Nagarajan)

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Part B: Stories from the Regions Export opportunities from crop diversification in West Africa Farmers in organic cotton projects in Senegal and Benin are exploring opportunities for exporting selected food crops in addition to their organic cotton exporting. Working with local NGOs Enda Pronat and OBEPAB they are focussing on five crops: hibiscus; sesame; fonio cereal; cashew and sheanut. These have been chosen by farmers because they can be fairly easily grown and are useful rotation crops in their organic farming systems. None of the crops are a part of the staple diet so cultivating them for export will not undermine local food security.

(Courtesy: Enda Pronat) (Courtesy: Enda Pronat)

Sesame seeds and cashew nuts are well-known in Europe and sheanut butter is a valued ingredient for cosmetic use. Hibiscus flowers can be used for colouring, flavourings and make a delicious fruit juice, known as bissap in West Africa. Fonio is a tiny cereal grain, used traditionally as a special treat food at family gatherings. Fonio is gluten-free and rich in protein. „Fibre, Food and Beauty for poverty reduction‟ - Is a joint project of PAN Germany, PAN UK, OBEPAB from Benin and Enda Pronat from Senegal. It aims to raise awareness about the many different food crops grown by organic cotton farmers in Africa and help them to find better marketing options for these, in local or export markets.

sy : (Cour te

En d a

Pr on a

t)

(Courtesy: Enda Pronat)

More consumers and food companies are taking an interest in sourcing from African smallholders for ethical reasons, supporting farm families through „trade, not aid‟, to help combat poverty in rural areas. The project is bringing African partners to organic food trade fairs in Europe; disseminating information at consumer events; and talking with consumers, NGOs and companies to develop new, ethical trading relations between cotton-based organic projects and European food and cosmetic companies. Pesticides Action Network (PAN) Germany and PAN UK Read more about the project via http://www.pan-uk/foodAfrica and www.pan-germany.org

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Improved income through crop diversification in Mali Mobiom - the umbrella organisation of organic farming cooperatives in Mali - was mainly set up to organise the production of organic cotton. They soon realized that there is some demand for organic sesame and shea nuts - crops which were already grown by most of their farmers. Mobiom hence included these crops in the extension activities in order to improve their yields and quality, and to ensure that they can be certified organic. They found a buyer for the sesame who locally cleans the harvest and exports it for processing into sesame oil. In order to be able to sell not only the shea nut but also its butter, they built a small butter processing plant. Today, sesame and shea contribute about one third of Mobiom's turnover. Without this diversification, the costs of extension and certification per unit of produced cotton would be too high to be cost competitive in the market. In 2009, when there was an oversupply of organic cotton in global markets, Mobiom decided to temporarily reduce the cotton area and to shift some of this area to the production of sesame and fonio, a traditional cereal for which there is high demand in the domestic market. A next step will be to promote a leguminous crop like peanuts or beans grown in rotation with cotton and sesame, which will help to improve soil fertility and thus yields.

Bio sesame plant (Courtesy: Helvetas) Use of animals in organic cotton farming (Courtesy: Helvetas)

Helvetas, Organic Cotton Competency Centre

Organic cotton and sheanut trees (Courtesy: Helvetas)

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West African farmers diversifying markets to manage risk

Harvesting organic cotton (Courtesy: Helvetas) Neem tree seeds used for pest control instead of pesticides (Courtesy: Helvetas)

In 2002, Helvetas (the Swiss Association for International Cooperation) started supporting cotton farmers in Mali to convert to organic production and to access Fair Trade markets in Europe. Within four years, the initiative that had started with some 200 farmers grew into a producer organisation with almost 2,000 members. New organic cotton initiatives were subsequently started in Burkina Faso, Senegal and Benin. By 2008, in response to strong market demand, the number of organic cotton producers in these initiatives had grown to 13,000. Besides cotton, the producer organisations also started dealing with sesame, shea and other crops. Quick expansion of organic cotton production in Asia and a slow-down in global demand due to the economic crisis led to an oversupply of organic cotton in 2009. As the crisis also affected some of the buyers of the West African cotton, the producer organisations decided to halt expansion until the market situation relaxes. Farmers were encouraged to reduce their cotton area to some extent, and to grow sesame, peanuts and fonio instead, for which market prospects were better. In the end, the crisis stimulated efforts to diversify production and markets, to increase efficiency and thus reduce the cost price, and to intensify local processing and value addition. Frank Eyhorn, Helvetas

Farmer with harvested sesame stalks ready for threshing (Courtesy: Enda Pronat)

Young farmer with rick of fonio stalks, Koussanar, Senegal (Courtesy: Enda Pronat)

P a g e | 19 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Oil Seeds Unit in Uganda Lango Organic Farming Promotion (LOFP) is a farmers‟ association with over 25,000 farmers. At the moment the organic membership is about half this due to the Government of Uganda‟s decision to use DDT as part of an indoor residual spraying programme to control malaria. But this has not dampened the enthusiasm of LOFP to work with its members to find new markets for its products and hopefully, in time, to regain the certified organic status of all its members. Currently it is working with farmers in the “sprayed area” on a project to promote the growing of sesame and soya alongside the more traditional cash crop of cotton. These are all valuable sources of oil, but - apart from the cotton seed are not destined for this market at the present time. The sesame is a treasured local food source and has now found strong markets in the neighbouring countries of Sudan and Kenya and even reaches Ethiopia and Somalia, where the taste of the browner varieties of north Uganda sesame are preferred over the whiter types of Sudan and northern Ethiopia. The soya – of course without a hint of genetic modification! – is destined for the animal feed markets of Kampala, where it is being used to replace the now rare and costly fishmeal. Actually, one of the possible markets is for the production of floating fish-food – a new manufacturing plant has recently opened in Uganda – a product which is finding increasing demand due to the serious over-fishing in the major lakes of Uganda and the move to fishponds as an alternative source of fish to satisfy the strong regional demand for fresh fish. Cotton is still a major cash crop for the smallholder farmers of northern Uganda, but farmers have learnt to spread their risks and in doing so, improve rotations and cotton management, through adding these additional “oil” seeds to their income portfolio. The project supporting LOFP to promote soya and sesame amongst its members is supported by the “LEAD Project” of USAID and technical support is given through a working partnership with the Agro Eco Louis Bolk Institute – Eastern Africa (www.louisbolk.org). Through this diversification it is one of the major project targets that the LOFP member households should each be able to earn at least 1,000,000 Uganda Shillings (about $500) from each acre of production and most farmers in this region are cultivating about four acres.

P a g e | 20 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

This would mean a household income of about $2000 per year which places them well beyond the global poverty indicator income of about $700/year. The Farmer Field School training approach is being used to promote this production and so the farmers are guided to learn from each other and confront opportunities and challenges in the field, and hence improve production. The farmers are also contributing to the success of the project through contributing their own seeds as a cost sharing input. Oil – mineral oil – has started flowing from Ugandan oil wells and there is an expectancy that we will soon become another “gulf state” and enjoy the luxuries of these countries?! Perhaps this is just a wild dream, but a better reality might be the income small-holder farmers can obtain through growing the organic oil seeds - sesame, soya and cotton – and enjoy the direct income benefits which come with the skilful use of a hoe or plough and not an expensive oil rig! Alastair Taylor, Regional Manager, Agro Eco Louis Bolk Institute – Eastern Africa

(Courtesy: Agro Eco Louis Bolk Institute – Eastern Africa)

Organic market development in Paraguay, Latin America Eco Agro is a „movement‟ creating local markets for agro ecological products (i.e. products grown organically but not always certified as organic). In the early days the programme was supported by ICCO to get it up and running, and coordinated through a local NGO, Alter Vida. The programme has been very successful and is now run as a business distributing seasonal agro ecological products. For 9 years now Eco Agro has been marketing and distributing agro ecological products for farmers around the capital and beyond. Every Monday a truck goes to the production areas to bring the seasonal products into the city. The next day they are prepared and sold via a delivery system to homes around Asunción (the capital city of Paraguay).

y: A r tes ( Cou

l ter

) Vi da

(Courtesy: Alter Vida)

(Courtes y:

A lter Vi da )

(Courtesy: Alter Vida)

Challenges for organic ‘wet’ markets in Asunción: In the capital there have been attempts to organize „Wet Markets‟ exclusively orientated to agro ecological products. However there are faced by two main problems. First the weather which is extremely hot and second, managing the supply. Products are expected to be available for the entire day of the market. This is challenging, since they usually sell out before the closing time and it is often difficult for vendors to top up their stand (given the distance to the production area and the fact that bringing more in advance is problematic, given the lack of refrigeration). People often prefer to go to the supermarket. However, the supermarkets do not provide a good range of organic because there is not strong consumer demand. This scenario results in pressure for the producers and distributors of organic to be competitive with conventional prices. At the same time producers don‟t generally like to work with supermarket chains because their payment intervals (90 days) are too long for many small scale producers to wait. Thus, the local consumer doesn‟t have a wide range of organic products to choose from, and they remain reluctant to pay a higher price (just for a few organic options). Doraliz Aranda, Business Development Manager, Organic Exchange

P a g e | 21 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

By Doraliz Aranda, OE Business Development Manager

Organic market development in Argentina, Latin America The market for organic products in Argentina is now 2%. Organic products include fresh fruit, vegetables, meats and processed products such as wine, sugar, jams and marmalades, honey, juice and preserves. These products are most likely to be found in specialised or natural product stores; where product variety is slowly growing. The supermarket chain “Bells” now has its own brand organic label. Organic meat, wine and honey is not generally sold locally, most of it (~90%) goes to the international market. The organic farms provide products for restaurants, catering, stores and farm-deliveries. The main places for eating organic are in restaurants, where „organic‟ is mixed with vegetarian food and other kind of „bio‟ food like macrobiotic. In Argentina, products have to be certified organic to be retailed by shops. „Uncertified‟ organics (agro ecological) are sold directly from the farms to the surrounding communities.

Bells supermarket is offering organic products under its house brand.

In November 2009 the “Mercado Central de Buenos Aires” (biggest distributor of fresh products) opened the “Paralelo Orgánico” which sells organic fruit and vegetables. This is a new exciting venture but consumer demand is still relatively low.

“Paralelo Orgánico” - A place for fresh produce.

Every 4 months the Movimiento Argentino de Producción Orgánica (MAPO) sets up a „wet market‟ in a very distinguished hotel, aimed to promote organic products, another wet market in San Isidro also operates. These events bring press coverage and promote organics locally. http://www.mapo.org.ar/productos-organicos-en-el-mercadointerno-y-puesto-en-el-mercado-central-2/ Helping consumers... Access to information about organic products is available throughout the Country by contacting one of the four certification bodies. There is also a consumer guide to organic and sustainable products available in Buenos Aires, where the public can easily choose where to go to eat organic food and buy organic products. Doraliz Aranda, Business Development Manager, Organic Exchange

P a g e | 22 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Various organic products available in store and online.

Various organic products available in store and online.

The Agrocel story, India Agrocel is a private company, based in Gujarat, certified for both organic and fair-trade production. The Company that delivers “Service with a Human Face” was set up to serve the farming community; in particular small and marginal farmers. It started life in 1998 with only 500 acres and around one hundred farmers operating mainly in Gujarat with some production in Orissa. Today Agrocel has its own farming networks (of over 15,000 farmers) growing cotton and associated system crops across India: including strongholds in Tamil Nadu, Rajasthan and Maharashtra as well as its origins in Gujarat and Orissa. Land under cotton, and other crops, is now around 45,500 acres. Agrocel also offers Internal Control System services to other projects and producer groups as well as their own, from 26 Service Centres across India. Agrocel organic & fairtrade park (Courtesy: Agrocel)

Along with organic cotton Agrocel‟s organic farmers grow sesame, paddy, mustard, bajra, chick pea, lentils and peanuts as part of their farm system. Seed production programme (Courtesy: Agrocel)

Agrocel contracts to buy the main crops of cotton and the aromatic rice, Basmati. Cotton fetches a 4% premium and the rice a good 20%! Sesame gets 2%, and castor 4%. There is no assurance of purchase for other crops such as pulses but they are bought if a market can be found. The fair trade crops are grown in several states including Gujarat, Andhra, Karnataka, Orissa and Tamil Nadu. Raisins, rice and cotton are the main fair trade crops. Cotton is sold within India to several leading mills. Raisins are mostly exported and some quantity sold locally, as is the Basmati rice. In the domestic market the produce is branded and sold as “Agrocel - Fair and Pure”. Sales are mostly from the Agrocel Service Centres. Rice is sold in 20Kg packets and raisins in 200 gram packets. The sales are promising.

Awareness generation events (Courtesy: Agrocel) Water saving technologies (Courtesy: Agrocel)

Agrocel‟s Organic and Fair Trade Park in Dhrangadra in Gujarat, commissioned in 2008-09, is a far sighted effort that will give a much needed boost to the business and is an example of Agrocel‟s sincerity of purpose. The park has a running gin and an oil mill to process oil seeds. The proposed cleaning and packing unit for pulses will help stabilise the procurement of pulses from the farmers and help build the local markets. With stronger processing and marketing efforts, Agrocel is set to support their organic cotton farmers in a commendable way. Prabha Nagaragan, OE Regional Director, India

P a g e | 23 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Ecofarms, India: a brand to be reckoned with! Ecofarms is one of the oldest players in the organic food and fibre production in Iindia. They are a breakaway group from the Vidarbha Organic Farmers Association. From 150 farmers in 1990, Ecofarms now works with 20000 plus farmers who farm 60000 hectares out of which 15000 hectares is in cotton and the rest in a whole range of food crops. It is operating in Maharashtra and Orissa states in India. The cotton farmers grow important crops such as pigeon pea, green gram, black gram, cow pea, chick pea, soya bean, flax seeds, sorghum and millets. The farmers retain what they need for their own consumption and sell the rest to Ecofarms.

Organic food grains (Courtesy: Ecofarms)

In the non cotton area, paddy is important and aromatic varieties such as KALA JEERA, non aromatic varieties such as SUVARNA and LALAT are grown. Oil seeds such as sesame, peanuts, sunflower, and spices such as turmeric, coriander, mustard and cumin are other crops grown successfully. Organic food grains being cleaned by traditional methods (Courtesy: Ecofarms)

Ecofarms contracts to buy all the rotation crops, and has been in the grains and pulses business since 1999. Today they sell under their own label „ECOFARMS‟ in India and retail out of more than 300 outlets in India though big retailers such as Food Bazaar, Metro Cash & Carry, Reliance, Apna Bazaar and the like. Ecofarms engages in good value addition and have attractive Nitrogen flushed packaging. They are proud participants at BioFach Nuremberg and the India Organic every year, and a name to reckon with in the Organic industry. Anand Mor, son of Omparakash Mor the pioneer, and his wife Ashika proudly carry the flag forward. Prabha Nagaragan, OE Regional Director, India

P a g e | 24 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Eco Farm‟s packaged food products (Courtesy: Ecofarms)

Part C: A snapshot of crop diversification in Africa, Latin America and India Figure 4: List of contributing producer groups Region

Afri ca

Country

Beni n

OBEPAB

Egypt Ma l i

Sekem MOBIOM YIRIWA Bi oRe Bi oSus tai n ENDA LOFP

Ta nza ni a Senega l Uga nda

Latin America Bra zi l Nicaragua Paraguay Peru

India

Project

2009 2008 FCS

FCS

X

X

X X

X X X X

Es pl a r

Coproexnic Aratex Prorganica Oro Blanco Peru Naturtex Ecotton (TUSA) New Expo Ecotrade* APAEM Bergman Rivera Cedepas PNP Ecofarm Arvind NOF Agrocel Pratibha Maral Biore Mahima Zameen Chetna Organic Farms Vasudha

X X

X X X X X X X X X X

From the 12 producer groups that competed the survey 6 (50%) are ‘returnees’ – these are OPEBAB and Mobiom (West Africa), Coproexnic, Prorganica, Ecotton and Oro Blanco (Latin America). The reduced sample size and lack of a consistent contribution means we are only able to get a snapshot of what is happening in the farms and any meaningful year-on-year and cross regional comparison is extremely limited.

X X X X

X X X + + + + + + + + +

In 2009 12 producer groups completed the OE farm system crops (FSC) survey compared to a total of 15 for the same regions in 2008 (note there were 27 submissions the first time round). The OE Farm Team surveyed within Africa (Benin and Mali) and Latin America (Peru, Paraguay and Nicaragua).

In India a detailed look at rotation crops in organic cotton farming was carried out by independent consultants, i.e. outside of the OE survey. However, data for India was made available by the consultants and the table on the left indicates which farm groups were part of the independent project. Every attempt to compare data where possible has been made.

Note:

X

- ‘X’ shows producer groups that participated in FSC Survey

X

- ‘+’ shows producer group data

X X X X X

that has been taken from ‘Potential for Rotational Crops & Value Addition Opportunities In Indian Organic Cotton Projects’ by the Shell Foundation dated 24 August 2009. -

P a g e | 25 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

What the survey shows... and what it doesn’t The data presented in the next section reflects the information provided by 12 Producer Groups (3 in West Africa and 9 in Latin America) plus additional information collected by an external consultant12 from 9 Producer Groups in India. When reading the results presented here please keep in mind: •

This is not a representative sample size and no extrapolation can be made.

•

Any comparison between 2008 and 2009 is weak since the Producer Groups responding to the survey varied from year to year and the survey questionnaire changed to some extent between the two years.

•

Interpretation of survey questions may have varied from Region to Region and between Producer Groups – due to language, terminology and general characteristics of survey management.

•

The survey has been completed by the ‘Producer Group’. It is important to remember that this is the combined production of all farms that feed into the PG. Variations of rotation and other systems planting will almost definitely vary from farm to farm.

•

Producer Groups may not have presented us with the complete list of the crops grown on farms (partly due to the reasons above). Crops that do not have a commercial value may also have gone unreported.

•

Data from India has been collected differently from the rest and only in some areas can we compare this data with that collected by the OE survey.

-

12

‘Potential for Rotational Crops & Value Addition Opportunities In Indian Organic Cotton Projects’ by the Shell Foundation dated 24 August 2009.

P a g e | 26 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Observations from Africa

Organic cotton system crops in Africa range from food to beauty; peanut, cashew, sesame, hibiscus, shea butter… Most producers sell their harvest locally without any compensation made for organic value. Local consumers, even if some of them are aware of the benefits of organic food, can hardly afford to pay an organic premium. Purchasing power is low and this prevents them from taking consistent organic consumption decisions. This is the reason why most organic farm operators seek export opportunities for their crops. The post harvest care and logistics are organized differently by the different projects. In Burkina, UNPCB (the cotton farmers Union) that promotes organic cotton sells the harvest directly to BURKINATURE (an organic export company). BURKINATURE organizes all the logistic and export of organic sesame and hibiscus. In Mali, YIRIWA, a company that promotes organic farming takes care of all processes. MOBIOM, the Malian organic movement proceeds in the same way to export organic sesame, shea butter and hibiscus. Market promotion and capacity building of farmers‟ organizations are important for the successful development of organic cotton‟s system crops. In terms of agronomic advantages, much evidence from farmers, and from researchers indicates that the yields of crops grown is rotation with cotton are usually higher because these crops benefit also from the specific soil fertility and crop management care that has been taken for cotton..

Silvère Tovignan, Regional Director, OE Africa

P a g e | 27 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Observations from India

The growth of organic farming in India is on the increase, yet can be categorised as slow, given the great untapped potential domestically. The challenge lies in: 

The lack of information.



Stronghold of conventional channels for marketing and distribution.



Non availability of full basket for organic consumers.



The price factor of organic produce at the retail end. Delays in procurement and payment have been reported by some farmers, pushing them to sell and realise money at the earliest opportunity (and so not receive an organic price).



Within the community of the organic cotton producers , there has long been a need for hand holding and support. The food crops grown in rotation and in the intercropping systems will play a major role in making the organic cotton farmers lives less economically challenged as well as realising the full potential of the effort of producing organic, but lack of support clearly results in the produce ending up as conventional produce.



Data gathering of organic food crops remains a challenge and can only improve with better and timelier governance and more transparency.



Some organising of markets is seen through the launch of brands such as 24 letter mantra, Ecofarms Organic, and food festivals promoting organic, and on store shelves in major supermarkets.



Farmers markets and direct sales from farmer groups are also seen.



Policy support from the government is growing with APEDA and NCOF being active at the national level and State governments also beginning programs at their level.



The issues around food production are the same as for fibre with the exception of the GM issue. Farmers grapple with lack of Package of Production, lack of Extension, shortage of organic inputs, post harvest challenges such as storing, packing and timely transport and lastly assured markets. Prabha Nagarajan, Regional Director OE India

P a g e | 28 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Observations from Latin America

The cotton ecosystem depends on the microbiological and physicochemical quality of the soil. These are crucial in cotton production and crop rotation. A poor soil does not produce good crops; therefore, having a suitable rotation strategy can help improve integrated management of the agro-ecosystem. For Latin America the predominant crops in the cotton rotation are maize and beans. These crops provide nutrients to the soil (in the case of legumes like beans). These crops are also part of the diet and are part of a food security strategy. This can be seen in Brazil, Nicaragua, Paraguay and Peru. However, other crops are also selected by farmers, such as sweet potato and cassava, which together with maize and beans help improve diet, but are also sold in local markets and help boost the incomes of the farmers. There are other crops - such as sugar cane in Paraguay - in many cases the dominant crop and this is inserted into a well established retail chain. Local markets are multi-dynamic; they move with a simple logic that prioritizes food security, continuity of cultural patterns and income generation in small scale, for example this happens in many native communities in Peru. Production at this scale should ensure social, economic and cultural development. However, because the development has this particular perspective, it is often little understood by the conventional market or conventional development systems. In this particular vision of farmers, an important element for the integral development of the cotton and crop rotation is the soil quality, therefore, the farmer selects the best soils for „primary crops‟ that have greater economic value, in some cases they will be used for food crops. The market opportunities in this regard are limited, especially in key factors such as: size of demand, economy, and preference for certain varieties. Moreover, lack of knowledge on adding value to crop rotation and in many cases the poor interaction between agricultural and consumer interests create much greater difficulties. Brazil is probably the country that has done most work in research and creates bridges to build connections between rural and market system. Finally, in the development of agro-ecosystems of cotton and rotation crops, companies that are allies of farmers play an important role. There is a need for developing models and systems for greater business interaction with a logic of integration, innovation and sustainable development. Alfonso Lizarraga, Regional Director, OE Latin America

P a g e | 29 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Top three issues Producer groups were asked to share their most pressing concerns. Figure 5 illustrates that managing agronomic issues (weeds, pests, soil fertility and water supply) and producing good quality crops are still high on the list of issues for many producer groups. A need to understand the market and improve access to it are also important; both African and Latin American producer groups identify farmer training, finance, sales and marketing as key areas for improvement. However, Latin American farmers also expressed concerns about food safety and hygiene, producer group logistics, and food security (especially farmers in Peru and Paraguay). No matching data was collected from India. Figure 5: Summary of Key Issues

Latin America

Africa Crop/product quality

Crop/product quality

Family food/income security

Family food/income security

Farming Equipment

Farming Equipment

Farming Technique/Training

Farming Technique/Trainning

Finance

Finance

Producer group logistics

Producer group logistics

Relationship with traders

Relationship with Traders

Sales Marketing

Sales & Marketing

Soil Fertility

Soil Fertility

Water Supply

Water Supply

Weed/Pest

Weed/Pest

Food safety & hygiene standard

Fire 0 Key Issue 1

1 Key Issue 2

2

3

4

Key Issue 3

P a g e | 30 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

5

New Market-subproducts 0 Key Issue 1

2 Key Issue 2

4

6 Key Issue 3

8

10

About crops The tables below compare the most frequently planted crops for 2009 with those reported for 2008. Since the producer groups reporting differed between the two years it is not possible to make any real comparison. However, as a general observation it appears that maize remains a popular farm system crop (although, interestingly, it was not reported by the African farm groups in 2009 even though 2 out of 3 of the producer groups were the same as 2008). Sesame continues to be popular in all three regions. Groundnut and sunflower have disappeared from the list; in 2008 both were commonly grown in all three regions. The variety of farm system crops appears greater in India than the other two regions. Figure 6: 10 most commonly planted crops 2009 vs. 2008

Africa

Latin America

India

Total

1 Maize/Corm

5

7

3

15

9

2 Sesame

4

3

2

9

8

9

3 Beans

2

5

6

13

4 Green Gram

9

9

4 Groundnut

3

1

6

10

5 Pigeon Pea

8

8

5 Sorghum

4

7

6 Soya

2

1

2

5

1

4

7

2009 Crops

Africa

1 Maize/Corn 2 Sesame

2

3 Soya

1

6 Beans

1

Latin America

India

Total

9

7

16

3

4

6

2008 Crops

4

7 Black Gram

7

7

7 Sunflower

2

8 Sorghum

7

7

8 Wheat

1

1

2

9 Wheat

6

6

9 Mung Beans

1

1

2

4

5

10 Black Gram

5

5

9

21

8

22

10 Millet

1

No of PGs:

3

9

No of PGs:

6

8

Note: - Data for India for 2009 is extracted from ‘Potential for Rotational Crops & Value Addition Opportunities In Indian Organic Cotton Projects’ by the Shell Foundation dated 24 August 2009. - The top 10 crops for 2008 were taken from ‘Farm System Crops Report 2008’. It should be noted that in the 2008 survey included other regions such as USA, Middle East, East Asia, however for comparison purposes only figures from Africa, Latin America and India has been shown here.

P a g e | 31 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 7: Crops by number of farms growing Crops

Africa

1 Maize/Corn 2 Sesame

2

3 Soya

1

Figure 8: Crops by countries and producer group

Latin America

India

Total

9

7

16

3

4

9

8

9

4 Green Gram

9

9

5 Pigeon Pea

8

8

6 Beans

1

6 7

7

8 Sorghum

7

7

6

6

4

5

5

5

3

4

4

4

3

4

3

3

9 Wheat 1

11 Bengal Gram 12 Groundnut

1

13 Chilli 14 Rice

1

15 Aniseed 16 Cassava/Tapioca

3 3

3

18 Sunflower

3

3

2

20 Castor 21 Safflower 22 Sweet Potato 1

24 Mango

1

25 Shea

1

Obepa b Yi ri wa APAEM New Expo ECOTRAD

Pa ra gua y Pa ra gua y Ni ca ra gua Peru Peru Peru

India

Prorga ni ca Ara tex Coproexni c Peru Na turtex Oro Bl a nco Ecotton Ecofa rm

Arvi nd

NOF

2 2

2

2

2

2

23 Cashew

Beni n Ma l i Latin America Peru Peru Peru

PG Mobiom

3

17 Cow Pea 19 Banana

Country Mali

7

7 Black Gram

10 Millet

Region Africa

Agrocel Pra tibha

2 1

1

1

Ma ra l

1

26 Algarrobo/Carob

1

1

27 Aromo

1

1

28 Barbasco

1

1

29 Canola

1

1

30 Catahua

1

1

31 Cocoa

1

1

32 Crotalaria

1

33 Culster Bean

Bi ore Ma hi ma Za meen

1 1

1

34 Honey

1

1

35 King Grass

1

1

36 Pasture

1

1

37 Pineapple

1

1

38 Sugar Cane

1

1

39 Guava

1

1

Crops Sesame, Shea, Millet, Mango Cashew, Beans, Groundnut Soya, Sesame Beans, Maize/Corn, Algarrobo/Carob, Mango, Guava Aromo

Pasture, Maize/Corn, Rice, Cacao, Banana, Cassava/Tapioca, Catahua, Barbasco, Pineapple Ma i ze/Corn, Ses a me, Ca nol a , Honey Bea ns , Ma i ze/Corn, Ses a me, Suga r Ca ne Ca s s a va /Ta pi oca , Ses a me, Bea ns , Ma i ze/Corn Bea ns , Ma i ze/Corn, Bea ns , Ba na na Bea ns , Ma i ze/Corn, Sweet Potato, Ca s s a va /Ta pi oca , Ma i ze/Corn, Sweet Potato Soybea n, Whea t, Ri ce, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Sunfl ower, Ses a me, Pea rl Mi l l et, Cow Pea , Chi l l i , Benga l Gra m, Bl a ck Gra m, Ca s tor, Sa ffl ower Soybea n, Whea t, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Sunfl ower, Ses a me, Benga l Gra m, Bl a ck Gra m, Groundnut, Sa ffl ower Soybea n, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Sunfl ower, Pea rl Mi l l et, Bl a ck Gra m Whea t, Ri ce, Green Gra m, Ses a me, Pea rl Mi l l et, Groundnut, Ca s tor, Cul s ter Bea n Soybea n, Whea t, Ri ce, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Ses a me, Pea rl Mi l l et, Cow Pea , Chi l l i , Bl a ck Gra m, Ani s eed, Groundnut Soybea n, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Ani s eed Soybea n, Whea t, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Cow Pea , Chi l l i , Benga l Gra m, Bl a ck Gra m Soybea n, Whea t, Ma i ze, Green Gra m, Pi geon Pea , Sorghum, Chi l l i , Benga l Gra m, Bl a ck Gra m, Ani s eed Soybea n, Green Gra m, Pi geon Pea , Benga l Gra m, Bl a ck Gra m

Note: - Guava has been listed as a crop in figure 6-10 but in all graphs and tables it has been grouped together with mango as per its original survey submission.

Figure 7 shows the complete list of farm system crops reported by the 34 Farm Groups named in Figure 3, 39 in total. Figure 8 indicates the variety of crops found in each country and more specifically in each farm group.

P a g e | 32 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Unfortunately the data is sketchy in Figure 9 and this makes it difficult to show a clear picture of the proportions of land under each crop or the tonnage produced although it would not be surprising to confirm the accuracy of the picture presented in figure 8; i.e. soya, wheat, rice and maize among the top tonnages. From the information provided only farms in Peru are irrigated.

Figure 9: Crops by volume Crops

India

Total

Tons

Ha

Tons

19519

111

19519

13947

ND

13947

9514

94

9514

419

8594

666

9013

ND

6914

66

6914

6 Pigeon Pea

4426

ND

4426

7 Green Gram

3792

ND

3792

8 Sorghum

2643

ND

2643

9 Bengal Gram

2360

ND

2360

2152

ND

2152

1545

2898

1692

12 Chilli

1369

ND

1369

13 Black Gram

1183

ND

1183

77

860

467

ND

467

339

ND

339

53

154

Crops 1 Soya

Africa Ha

Tons

111

ND

Latin America Ha Tons

2 Wheat 3 Rice

94

4 Maize/Corn

666

5 Millet

66

10 Sunflower 11 Sesame

“We want our Farmer Group to be in a good position to fulfil standards (environment and social equity), produce at a competitive price and react quickly to buyer demands.” Mobiom, Mali

2755

62

14 Sweet Potato 15 Groundnut

143

77.43 ND

85

860

ND

16 Cow Pea 17 Cassava/Tapioca

53

154

18 Castor

153

ND

153

19 Aniseed

143

ND

143

117

130

ND

109

33

145

93

ND

150

40

ND

36

20 Canola

117

130

21 Culster Bean

109

22 Beans

ND

60

23 Mango

150

40

ND

35

144.5

24 Safflower 25 Shea

36

26 Honey

ND

35

ND

ND

ND

ND

27 Pasture

236.52

ND

237

ND

28 Cocoa

78.975

ND

79

ND

29 Catahua

44.55

ND

45

ND

30 Banana

35.39

ND

35

ND

31 Aromo

7.5

ND

8

ND

32 Barbasco

4.05

ND

4

ND

33 Pineapple

3.24

ND

3

ND

ND

ND

ND

ND

ND

ND

ND

34 Algarrobo/Carob 35 Cashew

P a g e | 33 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Total

ND

36 Crotalaria

ND

ND

ND

ND

37 King Grass

ND

ND

ND

ND

38 Sugar Cane

ND

ND

ND

ND

39 Guava

ND

ND

ND

ND

Note: - ‘Blanks’ indicates that the crop was not grown in the region whereas ‘ND’ indicates that no data. - Guava has been listed as a crop in figure 6-10 but in all graphs and tables it has been grouped together with mango as per its original survey submission.

Figure 10: Crop roles by crop Crops

Border

Plantation Rotation

Intercrop

Trap

System

1 Soya

0

0

1

0

0

0

2 Wheat

0

0

0

0

0

0

3 Rice

0

0

0

1

0

0

4 Maize/corn

0

1

6

4

1

0

5 Millet

0

0

0

0

0

0

6 Pigeon Pea

0

0

0

0

0

0

7 Green Gram

0

0

0

0

0

0

8 Sorghum

0

0

0

0

0

0

9 Bengal Gram

0

0

0

0

0

0

10 Sunflower

0

0

0

0

0

0

11 Sesame

0

2

3

0

0

0

12 Chilli

0

0

0

0

0

0

13 Black Gram

0

0

0

0

0

0

14 Sweet Potato

0

0

2

0

0

0

15 Groundnut

0

0

1

0

0

0

16 Cow Pea

0

0

0

0

0

0

17 Cassava/tapioca

1

0

2

1

0

0

18 Castor

0

0

0

0

0

0

19 Aniseed

0

0

0

0

0

0

20 Canola

0

1

0

1

0

0

21 Culster Bean

0

0

0

0

0

0

22 Beans

0

0

5

1

1

0

23 Mango

0

0

0

0

0

1

24 Safflower

0

0

0

0

0

0

25 Shea

0

1

0

0

0

0

26 Honey

0

0

0

1

0

0

27 Pasture

0

1

0

0

0

0

28 Cocoa

0

1

0

0

0

0

29 Catahua

0

0

0

0

0

0

30 Banana

1

1

0

0

0

0

31 Aromo

1

0

0

0

0

0

32 Barbasco

0

1

0

0

0

0

10%

33 Pineapple

0

1

0

0

0

0

0%

34 Algarrobo/carob

0

0

0

0

0

0

35 Cashew

0

0

0

0

0

1

36 Crotalaria

1

0

0

0

0

0

37 King Grass

1

0

0

0

0

0

38 Sugar cane

0

0

0

0

0

0

39 Guava

0

0

0

0

0

1

P a g e | 34 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 10 highlights the roles of crops collectively grown by West African and Latin American farmers surveyed. It is interesting to see that in some cases such as with maize, cassava and beans, the same crop has been reported as contributing to 3 or 4 different roles within in the farm system. Figure 11 makes a comparison between the various crop roles within African and Latin American farm systems, over the two reporting periods (08 and 09). Whilst the graph shows reduced complexity in Africa and the reverse in Latin America it is too early and the year-to-year survey comparison too weak to draw any conclusions.

Figure 11: System role by region

Crop Function

100% 90% 80%

No Response

70%

Other System

60%

Trap

50%

Intercrop

40%

Rotation

30%

Plantation

20%

Border

Africa

Africa

Latin America

Latin America

Note: - Guava has been listed as a crop in figure 6-10 but in all graphs and tables it has been grouped together with mango as per its original survey submission.

Figure 12: Seeds sourced Seedsfrom... are sourced from...

Region

Country

PG

Naturally recycled Farm saved/grown PG saved/grown

Africa

Mali

Mobiom

Shea, Mango

Beni n Ma l i Latin America Peru

100% 90% 80% 70%

Obepa b Yi ri wa APAEM

Peru Peru

New Expo ECOTRAD

Pa ra gua y

Prorga ni ca

Pa ra gua y

Ara tex

60% 50% 40% 30% 20% 10% 0%

Ni ca ra gua Coproexni c

Africa

Latin America

Naturally recycled

Farm saved/grown

PG saved/grown

Bought in organic

Bought in non-organic

Customer supplied non-organic

Peru Peru

Peru Na turtex Oro Bl a nco

Peru

Ecotton

Bought in organic

Bought in nonorganic

Sesame, Millet Beans, Groundnut Soya, Sesame

Customer supplied non-organic Cashew

Algarrobo/Carob, Mango, Guava

Beans, Maize/Corn Aromo

Pasture, Maize/Corn, Rice, Banana, Cassava/tapioca, Catahua, Pineapple Honey

Barbasco

Cocao

Ba na na

Maize/Corn

Maize/Corn, Sesame, Conola

Beans, Maize/Corn, Sesame, Sugar Beans, Maize/Corn Cassava/Tapioca, Sesame Maize/Corn Beans Bea ns , Ma i ze/Corn, Sweet Potato, Ca s s a va /Ta pi oca , Crotal a ri a

Ki ng Gra s s

Maize/Corn, Sweet Potato

Responses to seed sourcing, figure 12 are interesting for the variation of supply (not all from the same source and, particularly in Africa, some seed sovereignty 13 demonstrated). This ‘desired scenario’ feeds into a bigger picture of ‘seed management and seed integrity’, an issue demanding much interest or concern in the organic cotton growing sector but also linked to a more fundamental concern about food production and food ‘ownership’. From these results, it appears that seeds (for non-cotton crops) are often managed on the farm and within the control of the farmer or the producer group. In Latin America, the situation appears more complicated. Roughly 50% of seeds are reported to be within the management control of the farmer/producer group (or wild/forest produced) and the rest are bought in as organic or non-organic equally with almost a quarter of the non-organic seeds coming in through an arrangement with a ‘customer supplier’14.

13

Seed sovereignty - A form of "food sovereignty; a platform for rural revitalization at a global level based on equitable distribution of farmland and water, farmer control over seeds, and productive small-scale farms supplying consumers with healthy, locally grown food” Peter Rosset, Food First. 14 Customer supplied refers to the arrangements (financial) that a seed/agricultural supplier has with the farmer/farm group.

P a g e | 35 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 13: Crops mainly grown for... Crops are mainly grown for...

100%

Region Africa

90%

Country Mali

PG Mobiom

Benin

Obepab

Mali Latin America Peru

80%

Animal Feed

Yiriwa APAEM

Cash Crop Sesame, Shea, Mango Cashew, Beans, Groundnut Soya, Sesame

Food Supply Millet

Maize/Corn, Rice, Cocao, Pineapple Sesame, Conola, Honey Beans, Maize/Corn, Cassava/Tapioca, Sesame Beans, Maize/Corn

Banana, Cassava/Tapioca

70% 60%

Peru Peru

50%

Paraguay Prorganica

40%

New Expo ECOTRAD

Pasture Maize/Corn

Paraguay Aratex

30% Nicaragua Coproexnic

20% 10% 0%

Africa

Peru

Peru Naturtex Maize/Corn

Peru

Oro Blanco

Peru

Ecotton

Latin America

Animal Feed

Cash Crop

On Farm Process

No Response

Food Supply

On Farm Process

Beans, Groundnut Soya, Sesame Beans, Mango, Guava Catahua, Barbasco

Beans, Maize/Corn Beans, Banana

Beans, Maize/Corn, Sweet Potato, Cassava/Tapioca Maize/Corn, Sweet Potato

Crolataria

In figure 13 it is evident that a high percentage of farm system crops are grown for cash but as we see later, not always fetching organic prices15. African producer groups reported that they keep a large amount of what they produce for their own consumption e.g. millet (better known as fonio in West Africa), and a portion of the beans, groundnuts, sesame and soya they produced. In Latin America the proportion that stayed at home is not reported to be as high. Root vegetables such as sweet potato, and cassava (yucca) are grown for market only. In India, most of the production of rotational crops is sold to the conventional chains by the farmers directly. Farmers save about 30- 40% of production in the case of food staple crops like rice, wheat, maize, jowar and bajra for their own consumption; in the case of small farmers it could be more , especially in the tribal belts. The proportion is lower for larger land holdings. Small quantities of crops like pulses and oil seeds are also retained for self-consumption and the rest sold in the market. In the event of financial emergencies the farmers tend to use this stock in lieu of cash. Except for cleaning and packing in bulk packs, the farmers do not process any of the rotational crops16. 15 16

Organic prices range but are usually at least ~15% higher than conventional Extracted from ‘Potential for Rotational Crops & Value Addition Opportunities In Indian Organic Cotton Projects’ by the Shell Foundation dated 24 August 2009.

P a g e | 36 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

About harvest Harvest Method Figure 14: Harvest method

Figure 14 concludes that harvest by hand is standard practice in both Latin America and Africa. Machine use is very rare but there is some mechanised harvesting in Latin America of maize or corn, crotalaria and part-mechanised harvesting of sugar cane. In figure 15 shows that harvest tends to be a job for all. African farmers, both men and women, participate in the manual harvesting. Men tend to do any mechanised harvest and are reported to do the heavier or more ‘dangerous’ work in Latin America. Women are involved when harvesting is ‘easy’ or ‘safe’ and for a number of crops grown in Latin America, harvesting is reported to be a family affair (this was not a question in the survey – but offered as a general comment). For some crops, producer groups reported that harvesting is carried out by the men only.

100% 90% 80% 70% No Response

60%

Combination

50%

Machine 40%

Hand

30% 20% 10% 0% Africa

Figure 15: Who harvests? Who harvest? 100% 90% 80% 70%

“Ambitions for the next five years include improving the technical assistance system, improving shea butter processing techniques (including improved equipment for drying and training of farmers.” Mobiom, Mali

60% No Response

50%

Both 40%

Men

30% 20% 10% 0% Africa

P a g e | 37 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Latin America

Latin America

Region

Country

PG

Own use

Africa

Mali

Mobiom

Beni n

Obepa b

Sesame, Shea, Mango, Millet Beans, Groundnut

Ma l i

Yi ri wa APAEM

Breakdown of harvest

Figure 16: Breakdown of harvest (PG level) 100%

90%

Latin America Peru

80%

70% 60%

50%

Peru Peru

New Expo ECOTRAD

Pa ra gua y Pa ra gua y

Prorga ni ca Ara tex

40%

30% 20%

10% 0%

Soya, Sesame Beans, Maize/Corn, Algarrobo/Carob, Mango

Sold unspecified market Sesame, Millet, Shea, Mango

Sold direct to local Sold to local trader Sold to domestic market trader

Cashew, Beans, Groundnut

Latin America

Pasture, Rice, Banana, Cassava/Tapioca, Catahua, Barbasco, Pineapple

Rice, Pineapple

Ma i ze/Corn Bea ns , Ma i ze/Corn

Maize/Corn Beans, Maize/Corn,

Own use

Sold unspecified markets

Sold direct to local market

Sold to local trader

Sold to domestic trader

Sold to export trader

Sold to end user

No Response

Peru

Ca s s a va /Ta pi oca , Bea ns , Ma i ze/Corn Peru Na turtex Bea ns , Ma i ze/Corn, Ba na na

Peru

Oro Bl a nco

Peru

Ecotton

Crotal a ri a , Ki ng Gra s s

Soya, Sesame

Soya, Sesame

Honey

Sesame, Conola Sugar Cane

Beans, Maize/Corn

Maize/Corn, Cocoa, Catahua

Ni ca ra gua Coproexni c Africa

Sold to export trader

Cassava/Tapioca Beans, Maize/Corn

Bea ns , Ma i ze/Corn, Sweet Potato, Ca s s a va /Ta pi oca

Maize/Corn, Sweet Potato

Figure 16 builds on figure 13 and gives a more detailed breakdown of the channels the harvest is likely to enter. It is important to note that ‘own use’ includes farm use and livestock feeding as well as food supply. Since Mobiom has not specified which market their crops were sold to an additional column was added to capture the proportion (>20%) of production that ends up going to ‘a’ market. (See Case Study, page 18). Figure 17 (following page) gives a visual overview of the percentage of each crop that is either used at home or goes to various markets.

P a g e | 38 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 17: Breakdown of harvest (farm level)

West Africa

Peru

Benin-Obepab-Groundnut

Peru Naturtex-Banana

Benin-Obepab-Beans Mali-Yiriwa-Sesame

Peru Naturtex-Maize/Corn Own use Peru Naturtex-Beans Sold to unspecified market Peru Naturtex-Maize/Corn

Mali-Yiriwa-Soya

Sold direct to Naturtex-Beans local market Peru

Mali-Mobiom-Mango

Sold toOro domestic trader Grass Blanco-King

Benin-Obepab-Cashew

Mali-Mobiom-Millet

Blanco-Crotalaria Sold to Oro export trader

Mali-Mobiom-Shea

Oro Blanco-Cassava/Tapioca Sold to end user

Mali-Mobiom-Sesame

Oro Blanco-Sweet Potato 0%

20%

40%

60%

80%

100%

Oro Blanco-Maize/Corn

Nicaragua

Oro Blanco-Beans

Coproexnic-Maize/Corn

Own use New Expo-Aromo

Own use

Coproexnic-Beans

Sold Ecotton-Sweet to unspecifiedPotato market

Sold to unspecified marke

Coproexnic-Sesame

Ecotton-Maize/Corn Sold direct to local market

Sold direct to local marke

ECOTRAD -Pineapple

Coproexnic-Cassava/Tapioca 0%

20%

40%

60%

80%

100%

Paraguay

Sold to domestic trader

Sold to domestic trader ECOTRAD -Barbasco Sold to export trader ECOTRAD -Catahua

Sold to export trader

Sold to end user

ECOTRAD -Cassava/Tapioca

Prorganica-Honey

ECOTRAD -Banana Own use ECOTRAD -Cocoa

Prorganica-Canola

Prorganica-Sesame

ECOTRADmarket -Rice Sold to unspecified SoldECOTRAD direct to-Maize/Corn local market

Prorganica-Maize/Corn Aratex-Sugar Cane

ECOTRAD -Other Sold to domestic trader APAEM-Mango/Guaba Sold to export trader APAEM-Algarrobo/carob Sold toAPAEM-Maize/Corn end user

Aratex-Sesame Aratex-Maize/Corn Aratex-Beans

0%

20%

40%

60%

80%

100%

APAEM-Beans 0%

Note: - The duplicate entries for Maize/Corn and Beans for Peru Naturtex reflect the 2 different farm locations under the group.

P a g e | 39 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

20%

40%

60%

80%

100%

Figure 18: When are crops harvested?

Note: - Data for India for 2009 are based on months and is extracted from ‘Potential for Rotational Crops & Value Addition Opportunities In Indian Organic Cotton Projects’ by the Shell Foundation dated 24 August 2009. Data for Africa and Latin America are based on quarters as per the Farm System Crops Survey 2009.

The crop harvest calendar presented here in figure 18 gives an overview of when farmers are busy with harvest. West Africa and India have distinct harvest times (due to monsoon or rainy season) whilst in Latin America harvesting – of various crops – is carried out all year long. Later, in figure 22, the calendar shows when crops are sold to market.

P a g e | 40 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Region Africa

About product and sales Final crop grade Figure 19: Final Crop Grade

Country Mali

PG Mobiom

Animal feed

Beni n

Obepa b

Ma l i

Yi ri wa APAEM

Algarrobo/Carob

Peru Peru

New Expo ECOTRAD

Pasture

Pa ra gua y Pa ra gua y

Prorga ni ca Ara tex

Ingredient

100% 90%

Latin America Peru

Premium Sesame, Shea, Mango Cashew, Beans, Groundnut

Oil

Soya, Sesame Beans, Maize/Corn, Mango, Guava

80% 70% 60% 50% 40%

30% 20%

Grade not specified

Ma i ze/Corn

Ni ca ra gua Coproexni c

10%

Maize/Corn, Rice, Banana, Cassva/tapioca, Pineapple

Cocoa, Catahua

Barbasco

Sesame, Conola Honey Beans, Maize/Corn, Sesame, Sugar Cassava/Tapioca, Sesame, Beans, Maize/Corn

0% Africa Animal feed Premium Grade not Specified

Latin America

Peru Peru

Peru Na turtex Ma i ze/Corn Oro Bl a nco Ki ng Gra s s

Beans, Banana Beans, Maize/Corn, Sweet Potato, Cassava/Tapioca

Peru

Ecotton

Sweet Potato

Ingredient Oil No Response

Maize/Corn

Note: ‘Grade not specified’ covers crops grown for the family, farm use such as pest management or for the local market.

Figure 19 illustrates the grades at which market products are sold. Note, ‘grades not specified’ was added as an option retrospectively since a number of products were identified as entering a market stream but were the final grade was only checked as ‘other’ with no further details. Therefore the ‘other’ in the bar graph corresponds with the final column in the table. Note also ‘catahua’ is a tropical hardwood. Farmers (from Ecotrad) independently process the sap from this tree to produce bio-pesticides for the market.

P a g e | 41 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

How long are goods stored before they are sold? Figure 20: How long are goods stored before they are sold? 100% 90%

Region Africa

Country Mali

PG Mobiom

Beni n

Obepa b

Ma l i Peru Peru

Yi ri wa APAEM New Expo ECOTRAD

Pa ra gua y Pa ra gua y

Prorga ni ca Ara tex

Latin America Peru

80% 70% 60% 50%

40% 30%

20% 10% 0%

12 mths

Cashew, Beans, Groundnut Soya, Sesame Maize/Corn

Beans

Pasture, Rice Maize/Corn, Cocoa, Banana, Cassava/Tapioca, Catahua, Barbasco, Pineapple Ses a me, Conol a Maize/Corn, Honey Bea ns , Ma i ze/Corn, Ses a me, Suga r Ca ne

Ni ca ra gua Coproexni c

Africa

12 mths

Peru

Ca s s a va /Ta pi oca , Ses a me, Bea ns , Ma i ze/Corn Peru Na turtex Ba na na

Peru

Oro Bl a nco

Bea ns , Ma i ze/Corn, Sweet Potato, Ca s s a va /Ta pi oca , Crotal a ri a , Ki ng Gra s s

Peru

Ecotton

Maize/Corn, Sweet Potato

Latin America

1-3 mths 9-12 mth No Response

Beans, Maize/Corn

Figure 20 shows the length of time products are stored before they are sold. In Latin America the majority of crops are moved into the market within the month of harvest. However, African production can take up to six months to prepare. This generally reflects the type of product and the primary processing that takes place before sale (such as drying, pressing) as much as any logistical concern.

P a g e | 42 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

goods sold to market? Figure 21: How areHow goodare sold to market? 100% 90%

Region

Country

PG

Africa

Mali

Mobiom

Benin

Obepab

Mali Latin America Peru

80% 70%

Peru Peru

60%

Yiriwa APAEM New Expo ECOTRAD

50% 40%

Paraguay Prorganica

30%

Paraguay Aratex

20% 10%

Independently by farmers

Cashew, Beans, Groundnut Sesame Soya Beans, Maize/Corn

Rice, Cocoa, Catahua, Pineapple Sesame, Conola, Honey Beans, Maize/Corn, Sugar Cane

Nicaragua Coproexnic

0% Africa

Latin America

By PG not with cotton

By PG with cotton

Peru

Independently by farmers

No Response

Peru

Peru

By PG with cotton By PG not with cotton Sesame, Shea, Millet, Mango

Maize/Corn

Sesame

Sesame, Cassava/Tapioca, Beans, Maize/Corn

Peru Naturtex Beans, Maize/Corn, Oro Blanco Beans, Maize/Corn, Sweet Potato, Cassava/Tapioca Ecotton Maize/Corn, Sweet Potato

The Africa supply chain tends to reflect the work of the Farm Group’s marketing board and supporting-NGO. Mobiom work with at the Farm Group level to move sesame, shea, fonio (a form of millet) and mango into various supply chains. Farmers that sell cotton through OBEPAB independently sell their cashew, beans and groundnuts. Yiriwa sell soya at the Farm Group level and individual farmers manage the sesame. For Latin America there is currently no combined process for selling cotton and other commercial products; it is either managed independently by the farmers or aggregated and sold independently of the cotton chain.

P a g e | 43 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 22: When are goods sold to market?

Know goods' final destination?

Figure 23: Know the final destination of goods?

Generally speaking products destined for export or large domestic markets have distinct sales periods – whereas there is a constant trickle into local markets. In figure 23 it is evident that farmers are fairly aware of where their products go – but difficult to deduce whether farmers would know the exact product ends up. Local markets are obviously fairly straight forward.

100% 90% 80% 70% 60% No Response

50%

No

40%

Yes

30% 20% 10% 0% Africa

Latin America

P a g e | 44 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Organic Premium, Certified Organic & Certified Fairtrade

Figure 24: Crops with Organic Premium, Certified Organic & Certified Fair-trade Region 100%

80%

60%

Africa

Country Mali

Ma l i Latin America Peru Peru Pa ra gua y Pa ra gua y

40%

PG Mobiom Yi ri wa New Expo ECOTRAD Prorga ni ca Ara tex

Organic Premium Sesame, Shea, Millet, Mango Soya, Sesame

Certified Organic Sesame, Shea, Mango Soya, Sesame

Certified Fairtrade Shea, Mango

Cocoa, Catahua Ses a me, Conol a , Honey Suga r Ca ne

Ses a me, Conol a , Honey

Beans, Maize/Corn, Sesame, Sugar Cane Cassava/Tapioca, Sesame

Note: - Organic Ni ca ra gua Coproexni c Ca s s a va /Ta pi oca 20% Premium, Certified Peru Peru Na turtex Bea ns , Ma i ze/Corn Bea ns , Ma i ze/Corn Bea ns , Ma i ze/Corn Organic and 0% Peru Oro Bl a nco Bea ns , Ma i ze/Corn, Certified Sweet Potato, Organic Premium Certified Organic Certified Fairtrade Fairtrade Ca s s a va /Ta pi oca columns have Africa Latin America Peru Ecotton been intentonally left blank as the information was not In figure 24 the farm system crops that enter an organic or fair-trade certification and premium price stream are listed in columns 4-6 of the table. It is evident that these are the crops that are grown for export or enter large domestic supply chains. Organic crops are certified by the Control Union and Fair-trade by the Fair provided in the survey.

Trade Labelling Organisation (FLO-cert).

Organic certification of crops in Africa approximately matches those that receive the organic premium; in fact fonio (millet) is reported to be achieving a priceaddition but is not certified organic. We see the reverse happening in Latin America. Only a little more than half the crops that are certified organic are enjoying an additional financial boost. Fair trade certification is less common in both Regions. However, not all farm system crops are eligible for ‘fair trade’ certification.

“How we have improved the financial situation for our farmers: Low cost financing to small farmer groups, fair trade incentives paid to groups not certified by FLO” Naturtex, Peru P a g e | 45 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

About opportunities The following graphics summarise the survey participants’ response to market opportunities. In figure 25 it is evident farmers are growing a number of crops that they consider to be ‘marketable’. The main inhibiting factors are not necessarily agronomic but more about access to finance and timely ‘market intelligence’ i.e. having an understanding of the market and being able to ‘keep tabs’ on supply and demand etc. This message is nothing new and how to improve access to information and secure (pre-) financing continues to challenge farmers in the South, as it does the providers of information or finance, globally.

“Training the farmers to develop leadership qualities, marketing skills for collective bargaining and educating them to strengthen their farmer organisations to execute their plans and internal control systems so that over a period of time they become independent. Alongside the training of farmers and strengthening their associations, creating the producer company with tangible assets which can process and trade multiple agro-commodities.” Zameen, India

This conundrum can be seen in figure 26 in terms of value-adding and access to finance. The skills shortage that is currently evident would mean that any further value-adding would first require an investment in farmer training. Figures 27 & 28 indicate that there is indeed potential to diversify income by taking advantage of other crops grown as part of the organic farm system, as periphery or border crops for example tropical fruits, herbs, spices, vegetables and cocoa. Once again it comes down to access to information – about how to make inroads to markets, particularly organic. Finding buyers and establishing value chains for non cotton crops is a big challenge when most supply chains are ‘single product’ based not relationship based.

P a g e | 46 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Ambitions... “4 crops to export and 4 crops to local and national market. Increasing the animal production, and include on agroecologic system. More good life conditions, example, house, basic services, nutrition, and education. Develop other points to cash money, example, handicrafts, ecotourism, fish farms, etc.” Ecotrad, Peru

Figure 25: Opportunities and challenges to diversifying cash crops

In figure 25 the fourth column in the table contains the list of products identified by Farm Groups as ones they would consider growing more of, or would consider introducing. The fifth column contains some of the challenges or barriers currently preventing expansion or new production. There are common themes around access to finance, understanding of the market, and farmer training.

“It is a shame that in this country where there is so much arable land, we can produce so little due to a lack of financing for farmers to increase their production.” Caproexnic, Nicaragua

P a g e | 47 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 26: Opportunities & challenges for value-adding

Figure 27: Market for better quality product?

P a g e | 48 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Figure 28: Opportunities for greater return?

In figure 26, 27 and 28 farmer training, access to information and better financial investment are the three key recurring themes for improved product quality, market growth and value adding. Here, Farm Groups have identified the crops that they would grow, market and further process if these elements could be improved.

“Ambitions for the next five years include investing in ginning mill and oil factory” Yiriwa, Mali

“We want our Farmer Group to be in a good position to fulfil standards (environment and social equity), produce at a competitive price and react quickly to buyer demands.” Mobiom, Mali

P a g e | 49 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

Parting thoughts... This discussion paper was produced to give a snapshot of the organic cotton farm system; the roles of different crops in the system, the benefits of diversification, the crops for home use and those for market. But most of all it was written to highlight the place the Industry is on its journey. There is more to an organic cotton farm than organic cotton! ‘Interim conclusions’ from Organic Exchange are a mix of observations, reflections, questions and recommendations for what might happen. •

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The organic cotton industry, until now, has mostly been ‘all about cotton’. Growers see themselves as cotton farmers, buyers are only interested in buying cotton, and most industry support, marketing and promotion is focussed on cotton. However, cotton is a crop that is part of a system, and the cotton farmer is a producer of many crops. Shouldn’t the support, marketing and promotion better reflect the diversity of a farmer’s production? There must be a role that Marketing Boards of Producer Groups can play to promote the basket of products available from their farmers – for local, regional and/or export markets.

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Should Organic Exchange be working with equivalent organisations for other crops? Is there an ‘Organic Exchange’ for sesame or cashew?

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Some ‘Organic Cotton Growers’ are now getting as much, if not more income from a secondary crop such as sesame. How can Producer Groups support their farmers to establish a second stream of income – and the (new) value chain? Or look at ways to integrate or maximise efficiencies in the supply chains of both products.

P a g e | 50 A Snapshot of Crop Diversification in Organic Cotton Farms 2009

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How could joint-certification of all organic crops (i.e. a farm certification) be achieved?

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What can be done to boost the profile of doubly-specialized intermediaries or create more of them? Building stable and secure value chains for one product is hard enough!

The final comment is one for debate and discussion: how much should we question the status quo? Could it be that farm system crops are doing exactly what they should be doing already? Providing food for the family and a contribution of accessible fresh, ‘safe’ produce to the local marketplace (with some contribution to export and emerging domestic markets)? Disrupting this local supply chain should surely be avoided. Especially if the result is the farmer and his or her local community eating lower grade food or spending all their cash on ‘topping up’ food supply. Can a balance be achieved; robust local markets, and proportional, selective production of high demand, high value crops for larger supply chains? These are the questions to weigh up as part of the quest for sustainable development at the organic cotton farm gate, and beyond.

P a g e | 51 A Snapshot of Crop Diversification in Organic Cotton Farms 2009