Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India...
Transcript of Exporting Asian Non-Food Organic Products : Opportunities and … · 2017. 9. 17. · China India...
Exporting Asian Non-Food Organic Products : Opportunities and Challenges
MIYOSHI, SatokoThe representative of Global Organic Textile Standard in Japan
Source: OTA
what can be organic textile products
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
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
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
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
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
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
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
Market growth
production does not meet demand
need cuter, wider choice
need clear distinction
Needs for Fiber
World population
cotton
Polyester
Synthetic fiber
Needs for Fiber
Million ton/ yearPopulation 100Mi
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
2016
organic cotton user
* 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.
The Organic Content Standard (OCS)
Standards and Certification Program
GOTS(Global Organic Textile Standard)
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
Harmonisation process
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.
Basic Features
Organic Fibres
Environmental and
Social Criteria
Concerns all
Processing Stages
Testing for Harmful
Substances
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
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%
• 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
• 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)
•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.:
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
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
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
&
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
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
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.
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Organic Cosmetic/Body Care
Basic skin careMake-up cosmetics
Body care
market
TOP3 countries of sales Japan, Korea, China
Purchasing abilities is growing in ASIA
climate, skin colors, trend
basic skin care/ make up cosmetics
opportunities and challenges
Standards and certification
CosmeKitchen 80stores
ISETAN Beauty Apothecary
“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
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