September 2009   

Organic Growth
Organic Exchange Promotes Sustainability and Social Responsibility

The market for organic fibers is growing strong, fueled by an increasing awareness of both the environmental and social implications of fiber agriculture, according to LaRhea Pepper, senior director of the non-profit organization Organic Exchange.

Founded in 2002 by companies and organizations that were active in the organic cotton industry, Organic Exchange was created for the purpose of expanding organic agriculture, specifically organically grown fibers. Original members such as Patagonia, Nike, Parkdale, Thai Textiles, TOCMC and Organic Essentials have been joined by more than 250 companies and organizations worldwide.

Organic Exchange currently employs 20 staff members who are working with over 100 farming projects. Along with educating and consulting with farmers, manufacturers and retailers, Organic Exchange also conducts market research and helps to develop and strengthen industry standards. Working together with member companies and organizations, Organic Exchange has helped grow the organic cotton market from $3 million in 2001 to $3.2 billion in 2008.

Organic Exchange’s key focus areas include market outreach and farm development. The organization hopes to grow the organic cotton retail market to mirror growth in other fiber production and be a partner and resource to the industry on sustainability issues relevant to organic fibers.

According to Pepper, “First and foremost, we want to help brands and retailers connect with organic cotton farmers to turn their supply chains into “value chains” which acknowledge and support the intrinsic value that is in the product.  We focus on training and implementing tried-and-true success factors. While Organic Exchange’s farm development team works on the ground to launch and sustain farming projects, the member services and communications teams work to connect brands to the information they need to succeed with organic fibers.”

One of the important issues for producers, manufacturers and consumers is exactly what the term “organic” means when applied to fibers. “Organic has a clear definition, and in many countries, a legal definition, when it comes to agriculture,” Pepper noted. “What have been voluntary are the processing standards.”

“While there have been standards in place on base organic cotton since the 1990s, the past five years have been especially rewarding for organic farmers and corporate social responsibility advocates, as organic fiber products have been adopted by more mainstream consumers,” Pepper said.

Some companies only want to make a fiber claim, but increasingly, companies are looking to make a product claim – not only is the fiber organic, but the entire garment is sustainably produced. Organic Exchange is working with other organizations and government entities to harmonize standards and develop clear language and definitions that can be used globally.

As companies become more strategic about their sourcing options, Organic Exchange is also working on certified product tracking and tracing, so that manufacturers and retailers can trace the entire supply chain – from seed procurement through retail.

“The ‘organic’ discussion also serves as a catalyst for putting hard issues on the table,” Pepper added. “Child labor and other social issues come into play. It’s about transparency regarding not only what is in the product, but how it is made.”

While Organic Exchange’s main focus is on organic cotton, they are increasingly dealing with other agricultural fibers as part of the overall “textile footprint.”

Pepper has seen a growing sense of greater responsibility among producers and consumers of agricultural fibers. Even during difficult economic times, Organic Exchange is experiencing more calls and inquiries. “We want to ensure that brands have adequate access to the qualities of fiber where they need it and that farmers are growing fiber for a global market that will support them with fair and sustainable prices,” Pepper noted. “To accomplish this, we need to support the industry with training, education and access to information.”

For Organic Exchange, textile trade shows provide an important opportunity to educate suppliers about the many benefits of organic fibers. “We’re committed to supporting our partners across the entire value chain,” Pepper said.

And that will translate into even greater future growth for organic agricultural fibers.

For more information on Organic Exchange, contact LaRhea Pepper at larhea@organicexchange.org.
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