MOBIOM, Organic Cotton Co-operative, Mali, West Africa

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1 MOBIOM, Organic Cotton Co-operative, Mali, West Africa Summary Women members of MOBIOM Trevor Leighton MOBIOM is the umbrella organisation for 73 village co-operatives that grow organic Fairtrade cotton and mangoes. It is located in the town of Bougouni in the Sikasso region of southern Mali, about 180 km south of the capital Bamako. The member co-operatives are located across eight administrative zones (Bougouni, Yanfolila, Kolondièba, Garalo, Yorosso, Bla, Kita and OHVN zone), each home to around 10 co-operatives. In French-speaking Mali these groups are known as Coopératives de Producteurs de Coton Biologique (CPCB) or organic cotton producer co-operatives. Background In spite of the huge importance of cotton to the global textile industry, world market prices have been in long-tem decline in real terms since the 1970s, notwithstanding a recent upturn in cotton and other commodity prices linked to the global financial crisis and Pakistan s cotton production hit by severe flooding. While some of this decline can be explained by reductions in production costs and strong competition from synthetic fibres, the major cause is the payment of subsidies by rich cotton producing countries notably, the US, China and the EU to protect the domestic production of cotton and related industries. As a result cotton farmers in Africa, Asia and Latin America are struggling to survive, while developing countries which rely on cotton exports are losing out on vital foreign exchange earnings that could be allocated to health, education and other social development projects. In Mali, as in other producer countries, the development of the cotton industry has also been held back by state monopoly of the sector. First steps in the privatisation process to address structural issues were taken recently but for political reasons this process appears to have temporarily stalled.

2 MOBIOM Structure & Strategy MOBIOM s full name is Mouvement Biologique Malien or Malian Organic Movement. It was founded in 2002 by the development organisation Helvetas Mali specifically to participate in an organic cotton programme it had established in Mali in MOBIOM is a registered not-for-profit co-operative society in which the General Assembly, made up of two delegates from each CPCB, is the main decision-making body. It elects a 15-member Board which in turn appoints an Executive Committee to manage the day to day running of the organisation. Originally a federation of 16 co-operatives with a membership of 174 farmers, MOBIOM has grown to 73 co-operatives with 6,547 members, of which 30% or almost 2,000 are women. Seventy of the CPCBs grow cotton and three in the Bougouni zone grow mangoes. MOBIOM is a member of the Union of Cotton Producer Co-operative Societies at local, regional and national levels and is also a member of the Union of Mango Producer Societies. MOBIOM s mission is to promote Fairtrade and organic cotton production and to represent and protect the interests of its members. Its strategy includes the following objectives: Improve the organisation s operational performance by building the internal capacity and skills of MOBIOM and its member cooperatives Increase the production capacity of its member cooperatives for organic cotton, mangoes, sesame, shea butter, and fonio (a type of millet) Ensure that the added value brings maximum benefits to the organisation s members. This will be achieved through the marketing of MOBIOM s products and services, and processing and product diversification (through research and development, and technical and technological innovations). In the medium term this should substantially increase members income and deliver high-quality products in sufficient quantities to customers Improve the socio-economic and political position of women within MOBIOM and their communities by developing specific activities targeted at women Improve the institutional profile of MOBIOM in Mali and abroad by developing an effective PR/communications network. MOBIOM actively promotes product diversification as a strategic response to the fluctuations of the cotton market and to adjust to the effects of climate change such as unreliable rainfall. It has supported members in producing organic certified sesame, groundnuts (peanuts), shea butter and fonio as cash crops which are sold on domestic and international markets. MOBIOM is now exploring Fairtrade certification for these last two products and has plans to install sesame oil processing plants and construct a spinning mill which would generate considerable incomes, particularly for women. Production Like all rural areas of Mali, the villages where MOBIOM members live have a high level of poverty and poor local infrastructure, with a lack of access to good roads, clean water, and healthcare. School attendance is low with most children helping their parents in the fields instead of going to school.

3 Agricultural households are typically between 12 and 30 people, made up of extended families of two to three brothers with their wives and between four and seven children each. Cotton farms can extend to 10ha but the average farm is 2.6ha, with a little less than 1ha under cotton. Mango farms are smaller at 2ha on average. Families depend on agriculture and rearing livestock for their livelihoods. Men are responsible for growing the family s staple foods of cereals and groundnuts while women cultivate small plots of groundnuts, maize, vegetables and rice to supplement the family s diet or to sell at market. Men also rear cattle and women raise goats and poultry livestock are seen more as insurance and would only be sold in times of great need. Households derive additional income from the small-scale trade in wood and condiments by women and from charcoal production by men. Cotton is planted in June and July and the peak harvest period is October to November. When the seed pod or cotton boll is ripe it bursts to expose the seed cotton the seeds attached to raw cotton fibre which is then picked by hand. Farmers carry their crop by cart, bicycle or on their head to a central organic store ready for sale. On the designated sales day, the cotton is assessed for quality, weighed and recorded before being laid out for inspection. All MOBIOM s cotton is purchased by CDMT 1 which owns the only ginning factories in Mali and is the sole exporter. The ginning process separates the seeds from the cotton fibre or lint which is then compressed into large bales. Cotton seed is used locally for cooking oil, animal feed and industrial purposes. Other products like sesame, groundnuts and shea nuts are sold at the same market but mangoes are transported directly to the packing station after they are harvested. MOBIOM markets their mangoes and negotiates prices with buyers on behalf of members. MOBIOM production (tonnes) cotton ,253 1,054 mangoes Organic Fairtrade Project Helvetas Mali is a partner of the Swiss development organisation Helvetas. It set up a pilot organic cotton programme in Mali which ran from 1998 to 2002 and aimed to improve farmers incomes, support sustainable production, and reduce the harmful effects of conventional cotton production on community health and the environment. The supply chain it put in place forms the basis of the organic Fairtrade cotton supply chain in the Bougouni region that was started in 2004 and is a joint project between three organisations: Helvetas Mali, Max Havelaar Switzerland (the Swiss Fairtrade organisation) and US global cotton trader Reinhart Inc. The project works closely with CMDT a public-private enterprise that has been part-owned by the GEOCOTON Group (formerly DAGRIS) since the partial liberalisation of the cotton sector in Mali. CMDT is responsible for managing the production, transport and marketing of cotton and also plays an important role in seed distribution and providing agricultural training and advice to producers. MOBIOM was set up by Helvetas Mali to help producers grow cotton under fair and sustainable conditions by working closely with all participants in the vertical value chain. For the farmers, conversion to organic production means they are no longer exposed to toxic agrochemicals, ground water is not polluted, and soil fertility is increased. They also benefit from access to training, reduced risk through diversification, access to credit and transport, knowledge exchange within their farmers group and guaranteed sales of their cotton at a higher price.

4 Members have replaced expensive synthetic insecticides and fertilisers with plant-based insect repellent and organic manure - significantly reducing both costs and their chances of falling into debt. Soil fertility has been improved and there has been a reduction in the incidence of complaints such as headaches and skin rashes caused by handling chemical pesticides. Many farmers have also adopted intercropping vegetables with cotton, particularly gombo (okra), as a way of reducing costs. Since joining Fairtrade, MOBIOM has sought to protect the environment and combat climate change by organising awarenessraising campaigns about the effects of tree-felling and the promotion of reforestation. MOBIOM and Fairtrade MOBIOM s production of seed cotton was organic certified by ECOCERT in 2002, followed later by mangoes. These products were Fairtrade certified in September 2004 but MOBIOM doesn t currently have a Fairtrade buyer for their mangoes. All MOBIOM s seed cotton is currently sold to Fairtrade buyers via CMDT. MOBIOM receives the Fairtrade minimum price of 0.50/kg (FCFA328) for organic Fairtrade cotton, compared to FCFA 170/kg which is paid to producers of conventional cotton. Cotton contributes 50% of MOBIOM members income and this higher price alleviates poverty in several ways. It increases their food security and ability to purchase food, ensuring they have enough food all year round; it helps cover the costs of primary healthcare needs, children s school fees, and clothing for the family, and also enables repayment of loans and investment in other income-generating activities. For example, farmers have been able to invest in the purchase of animals, carts, bicycles, and mopeds, and build houses with corrugated iron roofs. Fairtrade Premium On top of the minimum price, MOBIOM receives the Fairtrade premium of 0.05/kg (FCFA34) to invest in business or community development. Just under half of the premium is used to cover MOBIOM s operating costs and the remainder is used by CPCBs to finance community projects selected by their members and approved by MOBIOM. A number of projects are ongoing and others are awaiting approval or allocation of funds. In 2009 completed projects included: Construction of 17 storehouses for secure storage of farm inputs and the separate storage of the organic cotton harvest Construction of a literacy centre to continue efforts to address the high illiteracy rate: over 80% of MOBIOM s members are illiterate, which creates difficulties in the management of the CPCBs and particularly in the dissemination of information about production, markets and contracts Construction of a maternity clinic this greatly reduces problems that arise when pregnant women with complications would otherwise have to be taken long distances to other hospitals that provide maternity care Construction of 3 large-diameter well projects to provide safe drinking water for villagers and their livestock. The new wells have significantly reduced the workload of women as they no longer have to carry out the time-consuming and strenuous task of collecting water and have more time to rest and go about other activities Construction of 2 cereal banks where members can store cereal and improve food security. Farmers have to sell cereals before they rot unless they have clean, dry and secure storage facilities Purchase and repair of primary school desks and benches. Ideally members would like to build more schools but unfortunately sufficient premium funds are not available. While producers are clearly benefitting from organic cotton production, they want their children to be educated so they have the opportunity to find better-paid work as an alternative to farming.

5 Cotton in Mali Mali is Africa's second largest cotton producer after Egypt and produces around 500,000 tonnes of cotton a year. Cotton is grown on over 16,000 family farms and provides a livelihood for more than 3.2 million people. It accounts for 8% of GDP and is the country's main source of foreign currency, accounting for between 30% and 45% of total export earnings, worth FCFA80bn-FCFA125bn ($157m-$245m). [1] Compagnie Malienne pour le Développement du Textile, or Malian Textile Development Company. Fairtrade Foundation October 2010 Agrocel Pure & Fair Cotton Growers' Association, Gujarat, India About the co-operative Location: Members: Area under cotton: Farm size: Production: Fairtrade sales: Certified organic: Harvest: Kutch region, Gujarat State, Western India 1,930 6,000 hectares 4-8 hectares 4,408 tonnes (2008/09 season) 12% of production (2008/09 season) 20% of production, remainder under conversion November - February Picking cotton, India Simon Rawles "I did not get any education but I want my children to. Because of the Fairtrade price, I can send them to school." - Laljibhai Narranbhai, cotton farmer, Agroocel Pure & Fair Cotton Growers' Assiciation

6 Introduction Agrocel Pure & Fair Cotton Growers Association was formed in 2005 with the guidance of the Agri- Service Division of Agrocel Industries Ltd. Based at Bangalore, Agrocel s Agri-Service division currently works with more than 20,000 farmers across India. It aims to improve the livelihoods of small-scale and marginalised Indian farmers by enabling them to participate in organic and Fairtrade production and by marketing with added value their production of cotton, rice, nuts and other crops. Tough times for cotton growers In spite of the huge importance of cotton to the global textile industry, world market prices have been in long- term decline in real terms since the 1970s, notwithstanding a recent upturn in cotton and other commodity prices linked to the global financial crisis and to Pakistan s cotton production being hit by severe flooding. While some of this decline can be explained by reductions in production costs and strong competition from synthetic fibres, the major downward pressure on prices is caused by the payment of huge subsidies by rich cotton producing countries notably, the US, China and the EU to protect the domestic production of cotton and related industries. As a result cotton farmers in Africa, Asia and Latin America are struggling to survive, while developing countries which rely on cotton exports are losing out on vital foreign exchange earnings that could be allocated to health, education and other social development projects. The industry s high use of chemical pesticides is harming agricultural communities and the environment. And traditional flood irrigation is depleting rivers, lakes and water tables, making water a scarce commodity for many cotton growing communities. Agrocel Organic & Fairtrade cotton project One of Agrocel s major current projects is the Organic & Fairtrade Cotton Project, located in southern India. The project involves organising small-scale farmers into functioning farmers associations to help them meet organic and Fairtrade certification standards, improve farming techniques and reduce production costs. With marketing support from Agrocel, the farmers are able to access higher value markets and increase their incomes and profits. This long-term partnership also includes spreading the Fairtrade philosophy and encouraging pride in farming, particularly among younger farmers, many of whom drift to the cities, disillusioned with the status and financial prospects of farming. Five Fairtrade certified organic cotton farmers groups in the states of Gujarat, Tamil Nadu, Andhra Pradesh, Orissa, and Karnataka are currently participating in this project. Agrocel Pure & Fair Cotton Growers Association from Kutch in Gujarat was one of the earliest participants in the project and typifies the scheme. With guidance from Agrocel, this previously unorganised group of 50 farmers was formalised into a legal entity in This was the first step in successfully gaining Fairtrade certification, which enabled the farmers to supply the UK market when Fairtrade certified cotton products were launched in November Products made with Agrocel Fairtrade cotton are available from Marks & Spencer, Bishopston Trading, Debenhams, Monsoon Accessorize, People Tree, Traidcraft, Tesco and many more retailers. The success of the group has enabled them to extend membership to farmers in neighbouring Surendranagar district. Membership now stands at 1,930 farmers, including 77 women farmers, and extending to more than 6,000 hectares of cotton production. Fairtrade Minimum Price & Premium

7 The Fairtrade Minimum Price for seed cotton from India is $0.46/kg (Rs29.70) for organic and $0.38/kg (Rs28.50) for conventional. The additional Fairtrade Premium of $0.05/kg is for investment in projects that benefit the members and their communities. Projects are discussed and approved by members and managed by an elected committee. Around 20% of production by members of the Agrocel Pure & Fair Cotton Growers Association is certified organic, with nearly all the remaining production in conversion to organic. In the December 2008 April 2009 season, members produced 4,408 tonnes of seed cotton, of which 3,000 tonnes were sold to the conventional export market, 886 tonnes to the local market and 538 tonnes (12% of the total) to the Fairtrade market, including 92 tonnes certified organic. Fairtrade Premium projects As well as the Fairtrade Minimum Price and Organic Premium, farmers groups receive the additional Fairtrade Premium for investment in business or community projects agreed by members. Recent projects include: short-term loan scheme for farmers to finance agricultural improvements relief fund to pay medical costs of poor farmers installation of on-farm drip irrigation & construction of village ponds to conserve rainwater construction of a kitchen and provision of clean running water for a village school provision of schoolbooks and clothes for children of poor farmers and villagers rehabilitation of degraded farm land farmer education and training programmes technical assistance to develop compost pits to make organic manure and fertilisers regular veterinary checks for farm animals free vegetable seed distribution scheme for farmers homeworking embroidery scheme to improve women s incomes footwear stands for village schools (considered holy places so footwear must be removed) provision of solar street lamps in villages provision of pump equipment for the lift irrigation system provision of a tractor and land clearing equipment for the use of farmers provision of community hall for village meetings, weddings, and other social events integrated crop management practices to encourage pollinators, predators and parasitoids (P3), the natural enemies useful in reducing the population of insects known as sucking pests that attack cotton. Khima's story Khima and Jamnaben Ranchhod Simon Rawles

8 Khima Ranchhod lives on his four-acre farm with his wife Jamnaben, son Sujubhai and daughters Jomiben, Gitaben and Nariben. Khima has farmed cotton all his life, like his father before him. He also grows millet to make flour for the family s chapatis, with any excess being sold to the local market along with the beans he grows and harvests in the summer. Growing cotton is hard work. Khima digs channels each year to irrigate his two acres of cotton to ensure a good crop, but the falling water table means this can only be done twice a year. With the help of his neighbours he gathers his harvest over an eight-day period, starting at 6am and finishing at 4pm and breaking only for lunch. Khima used to sell his seed cotton to local traders and often received a poor price. We would deliver the cotton by bullock cart but the trader would always find a reason to give us a bad price. He now sells his entire crop to Agrocel for a higher, stable price and, with the help of their field officers, has converted the farm to organic production. A big advantage is that organic farming improves the soil s ability to retain moisture. Khima and his wife have struggled to keep their son in school but their daughters weren t so lucky. The village school only takes students up to age 14 and they couldn t afford the only option of sending the girls to a boarding school. Khima sees a brighter future now that Agrocel is supplying his cotton to the UK Fairtrade market. We will benefit economically, but more than this we will be able to improve the education of the children in the village. And Khima is looking forward to replacing the thatched roof on their mud-walled house with tiles: A higher income means we will be able to increase production by buying more organic manure to improve the soil - then we will be able to make improvements to our house. Fairtrade for a stronger organisation Small-scale farmers must normally be organised into a democratic organisation with legal status to be eligible to join Fairtrade. Embryonic or informal groups like the Agrocel cotton farmers can now join Fairtrade under the Contract Production Standards if they are contracted to a Promoting Body such as Agrocel Industries which is committed to mentoring the development of their organisation into an autonomous Fairtrade partner and to undertaking functions such as marketing and export on behalf of the producers. For the Agrocel farmers this means that with support and business training provided by Agrocel Industries, they have the potential to develop into a strong and independent organisation capable of dealing directly with international buyers. Gaining the knowledge and experience to handle all aspects of processing and export procedures on behalf of their members would substantially increase the value of the farmers production. Cotton production Farming is not easy in the Kutch region, which is prone to drought, where summer temperatures exceed 45 C and where yields are reduced by the salinity of the soil the result of irrigating land with water from wells that have been infiltrated by sea water. There are only 15 days of rain a year, bringing less than 12 inches of water, making water a scarce and valuable commodity, and water management a priority. The water table is dropping every year and poor farmers can t afford to keep digging deeper wells. So check dams are constructed to collect rain water, streams are dammed to increase the underground level and, old wells are recharged with river water.

9 To counteract the lack of water farmers grow traditional varieties of cotton and other crops that are well adapted to arid conditions. Rain-fed agriculture produces poor yields and flood irrigation reduces the fertility of the soil. Therefore, Agrocel is promoting drip irrigation which is better for both farmers and the environment. Farmers are being provided with expensive Netafim drip irrigation kits imported from Israel. They cost Rs65,000 ( 800) per hectare so Agrocel is helping farmers to access government grants of Rs22,500 ( 280) available for purchasing the kits. Most farms in the area are around 10 to 20 acres (4ha 8ha) in size and average yields are around 1,600kg/acre for conventional cotton. Farmers also grow a variety of other crops such as wheat, moong dal (lentils), sorghum (grain), sesame, groundnuts, tomatoes, peppers, mangoes, and fodder crops for the cows, buffaloes and bullocks which are kept for their milk and manure and used as draft animals. Seasonal labour on daily wages is employed to help with weeding and harvesting. A common feature of agriculture in Gujarat is the labour partnership system where poor farmers from other areas bring their families to live on the land of a local farmer. The local farmer provides accommodation, electricity, water and buttermilk and land to grow vegetables and keep a cow. In return, the poor farmer works the land and receives 20% 25% of the crop which he can sell either on his own or in conjunction with the landowner. Many families stay for seven or eight months and return each year, others only return to their villages for family events and holidays. Organic conversion Yields are reduced by about 15% for the first three years of organic conversion, during which chemical fertilisers and pesticides are gradually replaced by organic products. Farmers produce much of their organic fertiliser needs from the manure of their own cows and pesticide sprays are made from the oil of crushed neem tree kernels. Once converted, the cost of inputs is much cheaper for organic production. Paying an organic premium is vital in giving the farmers a financial incentive to go to the trouble of converting to organic production, which is also more labour intensive. Agrocel Industries promotes crop rotation as it contributes to improving soil fertility and stops pest levels from increasing. When fields are rotated from cotton to wheat or other grains the farmers must continue with organic practices even if there is no premium for that crop, a further reason why organic premiums are so important. The cotton supply chain Cotton supply chains vary greatly by country as cotton makes its journey from plant to ginnery to merchant. Several countries in Francophone West Africa had until recently a single state-controlled company controlling the provision of inputs and other services to farmers and buying and marketing the entire cotton harvest. Some companies continue these roles but have been privatized, with the state now holding a share alongside private investors and, in some cases, producer organisations. In Burkina Faso, Benin and Mali, the government still sets a guaranteed base price paid to producers, although with liberalization, private, sometimes foreign, companies now play a greater role in cotton markets. Almost all cotton exports from West Africa are in raw, unprocessed form: only around 6 per cent of cotton is made locally into end products. In India, cotton farmers sell their produce in local mandis or market yards through an open auction/tender system, following the prevalent market practices in the various yards. The main buyers are local ginneries, traders and commission agents, as well as government agencies such as the Cotton Corporation of India (CCI). State governments set a minimum support price (MSP) and the local Agricultural Produce Marketing

10 Committee (APMC) regulates and monitors product prices. International market forces ultimately determine the market price and if the local market price falls below the MSP, the CCI intervenes and buys the cotton. Some multinationals also play key roles in cotton: Geocoton, owned by two France-based agro-industrial and shipping companies, is the major shareholder in Dagris, which has interests in cotton enterprises in several African countries; Dagris was a French-government controlled company before being privatized. The world s three largest cotton traders US-based Allenberg (part of French company, Louis Dreyfus Commodities), Cargill Cotton and Dunavant - sell around four million tonnes of cotton a year, much of which is internationally traded a figure which amounts to up to half of world trade. Agrocel Pure & Fair Cotton Growers Association is a group of cotton farmers from the arid Rapar area of Kutch who are participating in an organic conversion project established by Agrocel Industries Ltd. Until recently, they were an unorganised group of farmers who met informally a few times a year to discuss organic farming issues. With guidance from Agrocel Industries, this loose association was formalised in 2005 into a legal entity with a democratic structure. This enabled it to achieve Fairtrade certification and to supply the seed cotton for the UK launch in November 2005 of products made from Fairtrade certified cotton. Agrocel Industries markets agricultural products including cotton, rice and wheat and promotes sustainable production, organic farming and fair trade practices with 20,000 farmers across six states in India. It pays a sustainable price with premiums for organic and fair trade cotton. It also provides agricultural inputs at cost price, interest-free pre-finance, and agricultural advice and support from Field Service Officers. The Agrocel farmers are taking a positive approach to tackling the challenges they face as cotton growers. Their partnership with Agrocel Industries is helping them to convert to organic production, protect their environment and access markets such as Fairtrade and organic with higher prices. The Fairtrade guaranteed minimum price covers the costs of production and provides a sustainable livelihood for the producers The Fairtrade premium enables co-operatives to fund projects that benefit the organisation and wider community: business and agricultural training; drilling bore holes for clean water; building schools and clinics Fairtrade producers benefit from advance payment and long-term relationships with buyers Fairtrade producer groups are democratically run and respect the rights of farmers and farm workers Fairtrade production standards encourage sustainable agriculture and protection of the environment.

11 The Cotton supply chain Source: Fairtrade Foundation November 2010 FILMS SCHOOLS RESOURCES n%20fairtrade%20cotton.pdf n%20fairtrade%20cotton%20- %20progress%20chart.pdf x f LEARNING RESOURCES Resources for ages 5+ Resources for ages 8+ Resources for ages 11+