Creating a sustainable cotton economy
Project description
Title: Sustainability and Value Added in the Cotton Economy in Uzbekistan.
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Uzbekistan
Lead executing agency: Qishlоq va suv хo'jаligi vazirligi (Ministry of Agriculture and Water Resources)
Overall term: 2019 to 2023
Context
Uzbekistan is the world’s seventh largest cotton exporter, so this natural fibre has always generated important export revenues. An efficient cotton economy also contributes to the country’s economic and rural development. However, successful agriculture alone does not guarantee economic development at national level. To date, the cotton economy has lacked the structures it would needed to process raw cotton, as a result of which only raw cotton is exported. Potentials to create jobs, keep supply routes short and establish long-term business relationships are not being leveraged.
Cotton-growing entails complex challenges. The improper use of chemicals and poor irrigation are a threat to the environment. Low salaries, health risks and poor working conditions, even to the extent of child and forced labour, violate human rights and make change essential.
Current reforms are extensively remodelling Uzbekistan’s cotton and textile economy. Former state farms are being privatised in clusters, which bring the farms together with processing facilities. In this way, market mechanisms can be introduced, and the steps involved in processing combined with commercial processes. This is termed vertical integration. Harvest quotas have been abolished and child labour and systemic forced labour have been successfully combated, as officially acknowledged by the International Labour Organization. A radical transformation has been achieved.
Uzbekistan now offers many opportunities to make the cotton supply chain fair and sustainable. The cluster structure provides a view of the entire value chain within the country and the systematic introduction of environmental and social measures. The government’s willingness to embrace reform is also conducive to partnerships with the political level, civil society and the private sector as well as with international companies. The objective is to enter into transparent, fair and long-term cooperation arrangements that will influence the wellbeing of all those involved along the supply chain.
Objective
The added value generated by sustainable cotton has increased in Uzbekistan.
Approach
The project is part of the global programme ‘Sustainability and Value Added in Agricultural Supply Chains’, which is operating in six different supply chains in eight countries. In Uzbekistan, the project is driving forward long-term progress in social, environmental and economic aspects of the cotton and textile sector, in close cooperation with the Uzbek Ministry of Agriculture and Water Resources.
Globally recognised standards and certifications play a key role. They ensure compliance with social and environmental criteria and create access to new markets. The project uses training courses and dialogue and knowledge platforms to provide information on standards and certification. The integration of women and young adults is a priority.
Workshops on sustainable cultivation methods (Better Cotton Standard System, BCSS) and workers’ rights inform decision-makers and the affected groups. Technical innovations regarding irrigation systems, soil analysis and pest control protect the environment and the farmers, and improve the quality of the cotton produced.
In cooperation with the private sector, the project is supporting the implementation of sustainability strategies, partly through an export promotion programme. Local skilled crafts and trades and handicrafts companies are given training in business management at a business incubator. This strengthens the local network and preserves and promotes the traditional textile sector.
Results
During the first year of the project, 200 people took part in training courses on resource-friendly irrigation, biodiversity conservation and social standards. Some clusters tested digital pest traps, which render targeted pest control possible and prevent the excessive use of chemicals on fields.
Last update: January 2021