Global Compact International Yearbook 2013
56
Cotton made in Africa works on the principles of a social
business. That means the initiative operates in accordance
with sound business methods, except that it does not aim to
maximize the profits of individuals, but rather to improve the
conditions of life of a large number of African cotton farmers.
In order to do that, it is building an alliance of international
retail companies that has targeted demand in the global market
for sustainably produced cotton and that uses this material in
its products. Cotton made in Africa acts in accordance with the
rules of the market, avoiding subsidies or interventions in the
system of world market prices, which are dependent on supply
and demand, as are the prices of practically all raw materials.
In return for the right to produce garments labeled “Cotton
made in Africa,” the members of the Demand Alliance pay
license fees. The surplus from this is passed on in accordance
with the principles of a social business to the partners who
have made the label possible by means of their work, namely
the smallholder farmers in Africa. This holistic approach pro-
vides a win-win situation for everyone involved. The partners
of the Demand Alliance receive cotton produced in accord-
ance with a social and ecological standard, without paying
a significantly higher price for it. The African smallholder
farmers and their families receive several advantages – they
learn more-efficient growing methods, meaning that they
can improve their incomes through better yields, and they
benefit from social projects such as improvements to schools.
One of the special features of Cotton made in Africa is the veri-
fication system. It works through the cotton companies, and
thus involves lower verification costs than certification systems
that work through the individual farmers or groups of farmers.
That means a large proportion of the license fees received will,
in the future, benefit the farmers and their families directly.
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Good Practices
Cotton Made in Africa
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