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Exporting Asian Non-Food Organic Products : Opportunities and Challenges MIYOSHI, Satoko The representative of Global Organic Textile Standard in Japan

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Page 1: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Exporting Asian Non-Food Organic Products : Opportunities and Challenges

MIYOSHI, SatokoThe representative of Global Organic Textile Standard in Japan

Page 2: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production
Page 3: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Source: OTA

Page 4: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

what can be organic textile products

Page 5: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Polyester・Nylon・Acrylic · polyurethane

Acetate · Triacetate · Promix

Rayon · cupra · polynosic · lyocell · bamboo fiber

Law material

cotton, linen, wool, alpaca, silk, abaca…..

• synthetic or regenerated fibers

• Natural Fibres

Page 6: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

SUSTAINABILITY PRESSURE POINTSIn the Life Cycle

So

cio

-eco

no

mic

Imp

acts

TIER 4Raw Material

TIER 3Raw MaterialProcessing

TIER 2Material

Production

TIER 1Manufacturing

Retail Consumer

100 million Cotton

Farmers

60-70 millionFactory Workers

WaterChemicals

Energy

LandWater

ChemicalsGreen House

Gas emissions

LandWater

ChemicalsGHG emissions

En

viro

nm

enta

l Im

pac

ts

source: Textile Exchange

Page 7: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

ISSUES IN COTTON PRODUCTIONEnvironmental

Socio-Economic

Land Use & Soil Degradation

Agrochemicals Climate Change

Loss of Biodiversity Water Use & Pollution

GMOs

Poverty & Vulnerability

Impact of Cotton Subsidies

Child & Bonded Labor

Health & Safety

Urban Migration

Price Volatility & Uncertain Market

Interconnected

Page 8: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

FIBERS & SUSTAINABILITYFiber production and associated issues and impacts.

CottonChemical use, loss of soil fertility, water use, GMOs,

health & safety, trade, pricing

PolyesterLand use, chemical, water use, waste, biodiversity,

toxicity, energy use, greenhouse gas emission

DownLand use, animal welfare (live plucking, force feeding,

animal husbandry)

Cellulosics Deforestation, habitat loss, climate change

Bio-Based Land use (food/fiber/fuel competition), GMOs

Fiber Sustainability Issues & Impacts e.g.

source: Textile Exchange

Page 9: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

CONVENTIONAL VS ORGANIC

•Typically treats seeds with fungicides or insecticides

•Uses GMO seeds for majority of cotton

•Applies synthetic fertilizers

•Loss of soil due to predominantly mono-crop culture

•Relies on irrigation (blue water)

•Applies herbicide to soil to inhibit weed germination

•Uses herbicide to kill the weeds that do grow

•Uses insecticide to control pests

•The 9 most common are highly toxic and 5 are probable carcinogens

•Crop dusting may cause harm to surrounding eco-systems and communities

•Defoliates with chemicals

•Use untreated seeds

•GMO seeds not allowed

•Builds soil organic matter through crop rotation, intercropping and compost

•Retains water more efficiently due to organic matter in soil

•Physical removal

•Controls weeds through cultivation

•Maintains balance between pests and their natural predators through healthy soil

•Uses beneficial insects, biological and cultural practices to control pests

•May use trap crops to lure insects away

•Defoliates through natural seasonal freezing

•May stimulate defoliation through water management

Seed

Water & Soil

Weeds

Pests

Harvest

CONVENTIONAL COTTON FARMING ORGANIC COTTON FARMING

source: Textile Exchange

Page 10: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

ENVIRONMENTAL BENEFITS

Organic Convention

SAVINGS…

1,808

978

5.7

18.7

2.8

3.8

182

2,120

5,760

15,000

GLOBAL WARMING

ACIDIFICATION OF LAND & WATER

OVER FERTILIZATION

WATER CONSUMPTION

ENERGY USE

kg CO2-eq. / 1000 kg fiber

kg SO2 eq. / 1000 kg fiber

kg PO43- eq. / 1000 kg fiber

m³ / 1000 kg fiber

MJ / 1000 kg fiber

46%

70%

26%

91%

62%

Organic Cotton Life Cycle Assessment

source: Textile Exchange

Page 11: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

SOCIAL & ECONOMIC BENEFITS

65%Producer Groups have Fairtrade or decent work policies

97%Producer Groups encourage women participation

88%Producer Groups grow crops for additional income

96%Producer Groups grow crops for own use

96%Producer Groups compost

84%Producer Groups report community benefits associated with organic cotton

Ave 9Crop types grown by producer groups for cash or own use

96%Producer Groups harvest rainwater

Organic Cotton –Sustainability Assessment Tool

source: Textile Exchange

Page 12: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Market growth

Page 13: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

production does not meet demand

need cuter, wider choice

need clear distinction

Needs for Fiber

Page 14: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

World population

cotton

Polyester

Synthetic fiber

Needs for Fiber

Million ton/ yearPopulation 100Mi

Page 15: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

COTTON PRODUCTION

28

27

26

25

24

23

2011/12 2012/13 2013/14 2014/15

27.8 26.9 26.2 25.9

Global Cotton Production Trend (million mt)

China

India

Rest of The World

USA

Pakistan

Brazil

Africa

Turkey

Australia

Global Cotton Production Breakdown 2014/15 (million mt)

6.5

6.4

3.9

3.6

2.3

1.5

1

0.7

0.5

Uzbekistan 0.8

Cotton is grown in around 80 countries on approx. 33m ha - 2.5% of global arable land.

Cotton farms range from highly industrialized in more developed economies, to small scale family farmers in the developing south.

Up to 100 million farmers grow cotton, and there are 250 million more workers in the wider cotton processing industry.

Around 90% of the 100 million cotton growers are in developing countries, farming less than 2 ha of land.

Around 70% of cotton production worldwide is now from genetically modified seeds.

source: Textile Exchange

Page 16: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

2016

organic cotton user

Page 17: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

* No affective regulation

* USDA/ Policy Memorandum 11-14

Regulation

The NOP does not restrict the use of the term “organic” in the labeling of textile products

that are certified under third-party certification bodies as long as all of the fibers identified

as “organic” in these textile products are produced and certified under the NOP

regulations. Textile products that are produced in accordance with the Global Organic

Textile Standard (GOTS) may be sold as organic in the U.S. but may not refer to NOP

certification or display the USDA organic seal.

Page 18: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

The Organic Content Standard (OCS)

Standards and Certification Program

GOTS(Global Organic Textile Standard)

Page 19: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Organic Farm Standard

TE Recycled Input

Requirements

TE Animal Welfare

Requirements

TE Animal Welfare & Land Requirements Organic Farm

Standard

TE Recycled Input

Requirements

MATERIAL AND PRODUCT CLAIM STANDARDS

CCS

Labeling

CCS

Labeling

CCS

Labeling

CCS

Labeling

COC

Labeling

Chemical

Environment

Social

CCS

Labeling

Chemical

Environment

Social

CCS

Generic

Material Content Claims

Product Claims

Page 20: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Harmonisation process

Page 21: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Sustainability-Definition

Sustainability is the ability to meet the needs of the

present without compromising the ability of the future

generations to meet their own needs.

Page 22: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Basic Features

Organic Fibres

Environmental and

Social Criteria

Concerns all

Processing Stages

Testing for Harmful

Substances

Page 23: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Organic Fibers

• Minimum of 70% certified organic fibers

• Certification according to recognised organic production standards (such as

Regulation EC 834/2007 or USDA NOP)

Additional Fibers

• Natural Fibres

• Maximum of 10% synthetic or regenerated fibers

(respective max. 25% for socks, leggings and sportswear)

Basic Key criteria for fiber use

Page 24: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Organic Fibres

Criteria Item

Fibres Allowed Cotton, Bast, Silk, Wool, Other Animal Fibres (Certified Organic)

Fibres Not Allowed Virgin Polyester, GMO, Asbestos, carbon, steel

Fibres Restricted Synthetic & Regenerated (Max 10%)

Special Conditions (Restricted

fibres)

For socks & Sportswear (Max 25%)

Special Conditions (Restricted

fibres)

• Regenerated fibres from organic raw materials, from certified

sustainable forestry management or recycled are permitted now up

to 30%

• Recycled synthetic fibres are permitted now up to 30%

Page 25: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

• General criteria for all processing stages

(e.g. separation, record keeping, environmental policy, social criteria)

• General ban on harmful substances in all processing stages

(e.g. formaldehyde, toxic heavy metals, GMOs)

• General criteria for the assessment of chemical inputs (Positive List)

Should meet GOTS Version 4.0 (meeting limits on human and environmental

(aquatic, fauna, flora and soil) toxicity as well as on biodegradability / -eliminability)

• Specific criteria for the different processing stages (e.g. functional waste water

treatment plant for wet processing plants, limitations on materials for accessories

and finishing methods)

Criteria for processing/ additives

Page 26: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

• As on 31st Dec, 2013, Positive lists according to GOTS Version 3.0 are

prepared for more than 398 suppliers of dyes and auxiliaries

• They contain

3746 trade names of colourants and

5662 trade names of auxiliary agents

The positive lists are available to all operators participating in the GOTS

certification system through their certifier

Positive lists – Statistics (For Additives)

Page 27: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

•No child labor

•Payment of living wages

•Working hours must not be excessive

•Safe and hygienic working conditions

•No discrimination, no harsh or inhumane treatment

•Mandatory fire safety drills

•Operators must establish social compliance management tools that

support the implementation and monitoring of the social minimum

criteria

Minimum Social Criteria

Meeting social minimum criteria based on the ILO key norms

is compulsory for all processing and manufacturing stages.

The requirements include e.g.:

Page 28: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Environment Criteria

•Energy & Water Consumption Data must be available

•Waste & Discharges

•Chemical & Sludge Disposal

•Staff Training

•Max COD content of discharged water: 20 g/kg of textile output

•pH of discharged water 6 to 9

•Max Temperature of discharged water 35 °C

•Max copper content in discharge water 0.5 ppm

Page 29: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Storage, Packing and Transport

• Contamination with non organic products is

prohibited

• PVC in packing materials is prohibited

• Pesticide/ Biocide use in storeroom/ transportation

has to be in accordance with International/ National

Organic Production Standard

Page 30: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Dual system for quality assurance

On-Site inspection

• On-site inspection of the entire processing chain up

to the import level

• Annual inspection cycle

• Organic product flow, environmental and social criteria subject to inspection

Residue Testing

• Orientation values for residues

• Risk assessment of contamination

• Analysis in ISO 17025 accredited labs

&

Page 31: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Label grading

Using 70 – 94%

organic fibres:

Made with (x %)

organic materials

certified by [certifier’s ref.]

Certification # 9999999

Using 95 – 100%

organic fibres:

Organic

certified by [certifier’s ref.]

Certification # 9999999

Page 32: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Cotton Farm/Collector

Scope & Transaction Certificate

Government regulated standards

Processing Units

Scope & Transaction Certificate

Industry voluntary standards

Retailer

Scope & Transaction Certificate

Industry voluntary standards

Certification Systems

Page 33: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Public Data Base •

Information and verification tool

By entering the [license no.] from an on-product label into the ‘free text’ field of the

search engine, the certified entity can be verified.

12345

Page 34: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Organic Cosmetic/Body Care

Basic skin careMake-up cosmetics

Body care

Page 35: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

market

TOP3 countries of sales Japan, Korea, China

Purchasing abilities is growing in ASIA

climate, skin colors, trend

basic skin care/ make up cosmetics

Page 36: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

opportunities and challenges

Page 37: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Standards and certification

Page 38: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

CosmeKitchen 80stores

Page 39: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

ISETAN Beauty Apothecary

Page 40: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

“Millennials, who will comprise 75% of

the workforce by 2025, have large

ambitions for business. They see a big

gap between the potential of business to

address the challenges facing society and

the actual impact it is having.”

DELOITTE MILLENNIAL SURVEY 2014

Page 41: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

Colmar Brunton Better Futures Report 2015 edition

The purchase of organic & ethical products is well

entrenched in consumer repertoires – growing fastest

among younger generations

PURCHASE ALL/SOME OF THE TIME

Page 42: Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India Rest of The World USA Pakistan Brazil Africa Turkey Australia Global Cotton Production

ご静聴ありがとうございました

THANK YOU

http://www.global-standard.org

[email protected]