LEARN Better Cotton Performance Review 2013-14 Season August 29 th, 2014 LEAD DRIVE THE CHANGE

LEARN

Better Cotton Performance Review 2013-14 Season

August 29th, 2014

LEAD

DRIVE THE CHANGE

Main Activities During 2013-14 Season

LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014

» Expansion into new and existing countries

» New membership requirements & traceability system

» Implementation of the mass-balance system

» Upcoming changes

Act Locally and Think Globally!


» Expansion = Global Business Opportunities

» Better Cotton is now a GLOBAL commodity

» Infrastructure & international demand creation

Better Cotton is in 19 Countries now!


2014-15 : 1,800,000 MT Lint Better Cotton


1 20

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

155,000248,000

790,000

1,555,000

CMIA Better Cotton

+ 90%

INDIA


Better Cotton: 2013 2014

Farmers 146,000 251,000

Hectares 236,000 461,500

MT Lint 160,000 315,000

GujaratMaharashtraPunjabAndhra PradeshKarnatakaTamil NaduMadhya PradeshOrissaRajasthan

Strengthen domestic business Exports bales and yarns to

ChinaBangladesh

Why not to Turkey?

Who else exports to China, Bangladesh and Turkey?

CHINA



Farmers 6,000 15,000

Hectares 27,000 65,000

MT Lint 53,000 150,000

Note: 2014 figures are projections

BRAZIL



Farmers 150 173

Hectares 215,000 295,000

MT Lint 361,000 1,000,000


Should the Chinese spinners import from India or Brazil?

MALI




Farmers 33,000 47,100

Hectares 86,000 154,700

MT Lint 35,000 63,400

USA


Note: 2014 figures are projections.

Better Cotton: 2014

Farmers 41

Hectares 10,550

MT Lint 10,520

AUSTRALIA


Note: 2014 figures are projections. *Estimated using average Australian yield/Ha.

Better Cotton: 2014

Farmers 21

Hectares 27,400

MT Lint 59,300*

TURKEY




Farmers 300 600

Hectares 7,500 14,450

MT Lint 15,000 27,400

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Membership&Better Cotton Uptake

August 29th, 2014

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# of accounts in the traceability system

» Ginner Accounts 237 (Down from 300)

» Trader Accounts 48 (34 Traders + 9 Pending)

» Spinner Accounts 242 (35 Pending)

» Retailer Accounts 42 (29 Retailers + 4 Pending)


Supply & Demand

China

India

Pakistan

Turkey

MaliTajikistanMozambique

Brazil

CMIA /BCI

China, 70

India, 62

Pakistan, 46

Turkey, 41

Brazil, 3 Italy; 2Bangladesh, 9Mauritius; 1 Indonesia; 1Bahrain; 1

SUPPLY DEMAND


Ginner Uptake Rate – Global Average

Comparison with Previous Cotton Seasons (SEED COTTON)

Seasons 2010-11 2011-12 2012-13 2013-14

Registered Gins 28 141 198 300

Better Cotton LicencedSeed, in MT 99,000 573,800 1,889,000 2,149,904

Lint, in MT 34,590 209,066 728,259 812,509Better Cotton Bought by Gins

Seed, in MT 16,182 241,920 810,112 948,891

Better Cotton Produced by Gins Lint, in MT 6,099 88,354 315,658 378,063

Gin Uptake Ratio 16% 42% 43% 47%


Trader & Spinner Uptake

» Trader Uptake: 104,000 MT

» Spinner Uptake:181,000 MT

» Figures as of August 16th, 2014


Ginner Uptake Rate - India

India - Country Ginner Uptake Information

2010-11 2011-12 2012-13 2013-14

Registered Gins 6 56 76 75

Better Cotton Licenced Seed, in MT 31,000 116,000 318,000 532,284

Lint, in MT 10,230 38,280 104,940 162,907

Better Cotton Bought by Gins Seed, in MT 4,915 69,869 140,117 237,484

Better Cotton Produced by Gins Lint, in MT 1,622 23,057 46,239 86,310

Gin Uptake Rate* % 16% 60% 44% 45%


Spinner Uptake By Country

Country Completed and Acknowledged transactions Awaiting Acknowledgement transactions

Bahrain 49,930 445,079

Bangladesh 22,762,240 3,550,056

China 30,156,648 1,358,217

India 39,048,409 2,762,522

Indonesia 1,304,912 0

Italy 2,400,000 49,874

Mauritius 392,577 163,207

Pakistan 54,492,553 0

Singapore 10,412,287 0

Turkey 20,629,630 5,901,338

Total 181,649,186 14,230,293


System Stats

Status of the transaction Number of transactions Volumes traded in Kg

Acknowledged 286 59,434,140

Awaiting acknowledgement 52 11,922,216

Cancelled by BCI 225 15,751,769

Completed 6,668 177,949,194

Entered 1 24,562,000

Refused 56 9,560,770

Request for cancellation 7 146,761

Request for change 1 96,403

Withdrawn 13 2,713,778

Total 7,309 302,137,031

225 Cancelled 97% Success Rate Using the System

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Mass-Balance & Traceability System Changes

Wednesday, 25 June 2014

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Mass-Balance System


Mass-Balance System


Mass-Balance System


BCCU Transfers

No Problem

Ginners

Traders

Spinners

Fabric Mills

Garment Man.

Retailer

ODF

BCCUs Has been problematic


Better Cotton Tracer – Development

» Inclusion of fabric mills in the Better Cotton Tracer

» 473 Fabric Mills Received ODFs from BCI Spinners

» Most of them are unaware of Mass-Balancing rules

» Most of them are unaware of traceability requirements

» They have no access to the system

» They have limited tools for keeping account of BCCUs

» Bulk yarn purchases – Receive 1 ODF

» Multiple shipments to multiple retailers



» If given access to Better Cotton Tracer, fabric mills could:

» Receive BCCUs from spinners automatically

» Enter sales declarations directly to retailers

» Receive training from BCI – close the knowledge gap

» Retailers could stop having to chase suppliers for paper work


Fabric Mill Design

Ginners

Traders

Spinners

Fabric Mills

Garment Man.

Retailer

Sales Declaration: (Required Information)Total Net Weight of Fabric: 90 KG (Hidden Calculator)Type of Yarn Used: CombedFabric-to-yarn salvage %: 10%BC % in Fabric: 100%BCCU Allocated: 120 BCCUs (100*1.1*1.2)Buyer: ABC Garment Manufacturer +(Optional Details)Fabric Style:Season:Origin of cotton used:

Purchasing Yarns with BCCUs:100 KG of 100% combed BCI yarn comes with 120 BCCUs



» Fabric mill account design completion - November 2014

» Fee for fabric mills

» Introductory fee during 2014

» System User vs. Member

» Comprehensive training programme for 500 fabric mills globally


THANK YOU VERY MUCH!

Documents

LEARN Better Cotton Performance Review 2013-14 Season August 29 th, 2014 LEAD DRIVE THE CHANGE