SMALL FARMER ATLAS

COTTON

Cotton is a small-scale farmers’ affair. An estimated 24 to 32 million farmers grow cotton on tiny landholdings, producing up to 75% of global production. The vast majority of small-scale farmers in the countries included in this report – China, Ethiopia and India – grow cotton on less than 2 hectares. (Note: The research sample for China is from the Gansu province only.)

The Small Farmer Atlas explores the perceptions of small-scale farmers on a wide range of sustainability topics centered on three themes: prosperity, inclusivity and balance with nature. Small-scale cotton farmers from China, Ethiopia and India are included in this report.

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SMALL FARMER ATLAS

PERCEPTIONS on cotton

While crucial for the livelihoods of millions farming families across the world, cotton farming practices are often damaging to the environment. It is projected that almost every cotton producing region will be negatively impacted by climate change; small-scale farmers indicate that it’s already a struggle to adapt fast enough to maintain reliable production. Though the positive overall score points to higher satisfaction, most farmers have a negative perception on their ability to adapt to a changing climate.

PROSPERITY

High prices for cotton on the global market may explain why farmers consulted have a fairly positive perception linked to prosperity. Droughts in key producing regions along with the recovery in global consumption in 2021 were key to this increase. However higher input costs and supply chains will eat into farmers’ profits.

INCLUSIVITY

In the three countries covered, cotton is a crucial component of the national economy, hence the government in each country tries to stimulate local production by creating a favorable supportive infrastructure. This is reflected in the positive perception on inclusivity among cotton farmers.

NATURE

Though cotton has a moderate level of drought resistance, climate models reveal that by 2040 water scarcity and erratic rainfall will increase the impact of drought in half of global production regions. Results of the survey demonstrate that farmers are already experiencing this new reality.

SMALL FARMER ATLAS

SUPPLY CHAIN

The main producing countries of India, China, the US, Brazil, and Pakistan produce more than three-quarters of the annual global production of about 26 million metric tonnes. Cotton consumption refers to the use of cotton fibres by mills to produce yarn, which typically takes place in producing countries with a garment industry. China’s textile industry dominates the market, followed by India, Pakistan, Vietnam, and Bangladesh.

Although the adoption of “more sustainable” cotton certifications has risen over the last decade, many companies continue to lag behind even in meeting basic sustainability standards. While sourcing decisions remain vital to promoting sustainability in the industry, relying solely on voluntary standards is not a viable solution to address the challenges of cotton sustainability.

SMALL FARMER ATLAS

3 QUESTIONS

Cotton production is heavily subsidized in China where a Minimum Support Price protects farmer income. Access to inputs, credit, training and other services are also heavily subsidized. Water is a principal concern for many farmers

Most farmers in Ethiopia are organized in cooperatives and unions, or under contract with large farms or ginneries, however government support is mainly directed to large farms. This may explain the slightly negative perception on inclusivity topics.

Bolstered by a favorable market, farmers in India are largely positive on prosperity indicators, yet increasingly worried about climate issues. Climate change is expected to impact one third of India’s production regions and farmers surveyed indicate challenges with access to water.

"We have different challenges to deal with in the coming years. We are facing water shortages. And when we try to harvest the crop we produced using the available water, the rain spoils our yield. Because the Awash river is almost totally filled with soil sediments and has lost its natural state, it flows on a diverted route. During the rainy season, it comes back again and flows into the lake by mixing with the flood."

Sisay Fente, Deputy Head Aweke Fente Farm -
Cotton Farm in Geane Wereda, Ethiopia

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