Let’s talk about organic cotton again for just a minute…
As many of you who are committed to organic cotton know, the price has gone through the roof on yarn, fabric and finished goods—spinners, fabric mills, assembly and brands are already feeling the pressure.
As some of you may know, the price of organic cotton fibre is ranging between between $3.00-$3.50/kg USD as quoted for 2021/2022—suggesting a YoY increase of 40-60%. This is driven by increase in demand and a major disruption in supply of real organic cotton.
However, in years past there has been an major imbalance between supply and demand as well, yet prices remained relatively stable. What is different this year and likely in years to come?
The truth is—not much. Like in years past, the supply shortage in “real organic cotton” is nothing new. Year after year, the balance is filled by conventional cotton sold “as organic” (e.g. fake organic cotton) that floods the market (often with valid Transaction Certificates) and prices stabilize. As demand continues to increase, the problem of fake organic cotton will continue to grow as more and more conventional cotton sold “as organic” will fill the demand. This “fake” organic cotton will likely be sold a prices on lint far below the prices being quoted on real organic cotton. The reason is that at $3.00-3.50/kg, the price is commercially untenable for most suppliers and brands to remain competitive in their market.
So two major questions come to mind:
1. When is the price of organic too good (to low) to be true? How can you spot “fake” organic fibre, yarn and fabric being offered (Hint: TC’s are not the answer).
2. When it comes to the real stuff, what is a ‘fair price’ when organic cotton lint is +70% to +80% higher than BCI and conventional cotton of a similar quality? What is the real cost to convert conventional cotton into organic cotton? What is fair for the farmer? Fair for farm group? Fair for the gin? Fair for suppliers? Fair brands? Fair for consumers?
To learn more about our Direct-to-Grower programme and know the “true” cost of organic and its impact on famers, fibre, yarn, fabric and garments—visit or contact us:
Originally Publish on LinkedIn By Crispin Argento
TextileTribe by Imran 