Caucus Call Suppliers and Manufacturers

Transcription

1 Caucus Call Suppliers and Manufacturers 28 May 2014

2 Your Council Representatives» ECOM - David Rosenberg (until 2014)» Orta Anadolu - Leon Picon (until 2014, and may be re-elected)» Olam International - Indranil Majumdar (until 2016) 2

3 Agenda» Update from the Council Leon Picon» Statutes Amendments Lilly Gilbert» Council candidates presentations» General Assembly Update Bahia Egeh» Members Q&A 3

4 Update from the Council» The Governance Working Group set up in January 2014 has reviewed Statues, By-Laws and practices of BCI» The following By-Law change has been proposed» By-Law Change: Extend terms of office for Office Bearers to 2 years, renewable once for a maximum of 4 years continuous service» Reason: To allow for greater continuity of leadership for the Council and BCI as a whole» There are 4 proposed Statutes amendments which members will vote on at the General Assembly, full detail in a moment» BCI is recommending that fabric mills as brought on the Better Cotton Tracer by the end of

5 Full size image: 1. Insert, Picture 2. Send Backwards twice to make text and arrow appear 3. Use an image which shows title text clearly Statutes Amendments 5

6 Overview of Statutes Amendments» Council proposes a limited number of amendments and clarifications to BCI Statutes for General Assembly approval» Changes to the Statutes will a) ensure that BCI conforms with best practice guidelines in governance and b) facilitate increased membership within the business-toconsumer sector» All members will vote on these Statutes amendments at upcoming meeting on June 24, in Amsterdam» Full text of the Statutes amendments is available at

7 Statutes Amendment 1» Change: Specify a time limit for Council membership: Members can serve a maximum of 10 years on the Council (this includes any interelection appointments)» Reason: To ensure BCI governance conforms to best practice» Background: Statutes say the number of times a member may be elected onto the Council (twice, consecutively), they do not say the maximum time an independent director may sit on the Council, nor time limits for Council members with inter-election appointments 7

8 Statutes Amendment 2» Change: Clarify eligibility for Council election candidates» Reason: To align eligibility criteria with the introduction of time limits for Council membership» Background: The rotation schedule of Council members works with 50% of council seats being open for election at any one point in time; There is possibility of inter-election appointments; With an introduction of time limits for Council membership there needs to be an assurance that Council candidates will be able to complete a full term of 4 years as a member 8

9 Statutes Amendment 3» Change: Broaden the definition of the Retailer and Brand membership category» Reason: To include service providers (hotels, tour operators, etc.) and expand the scope of membership» Background: From bed sheets to bathrobes, carpets to curtains, and slippers to towels - cotton is a predominant raw material used by the hospitality industry; BCI would like to support Hotels, Tour Operators, Catering and Leisure providers under the Retailer and Brand category, to source more sustainable cotton, so together we can reach our goal of 30% of global cotton production is Better Cotton by

10 Statutes Amendment 4» Change: Affirm the Association s financial powers» Reason: To facilitate BCI s financial obligations when setting up subsidiaries in Better Cotton producing countries» Background: The purpose of this revision is to formalise financial procedures the organisation is already responsible for and undertaking in its subsidiary countries such as operating bank accounts, investing surplus funds, raise money, etc., to achieve the mission of the Association. 10

11 Council candidates presentations

12 Council Candidates 1. Al Karam 2. Artistic Fabric Mills (Ameer Hussain) 3. Bros Eastern (Clarence Mak) 4. HuaFu Top Dyed Melange Yarn (Lili Peng) 5. Jiangsu Yueda Textile Group (Rong Chen) 6. Louis Dreyfus Commodities (David Cavalleri) 7. Orta Anadolu (for re-election) (Leon Picon) 8. Plexus (Peter Salcedo) 9. Spectrum International (Amit Shah) 10. Yuyue Home Textile (FuFeng Chen) 12

13 Al Karam

14 Artistic Fabric Mills

15 Bros Eastern Co. Ltd. (1/2) Company Introduction» Established in 1989; Top Dyed Melange Yarn Spinner in 100% Cotton, Cotton Blended depends on the yarn texture» First Melange Yarn Company IPO in Shanghai Stock Exchange A Shares in June, 2012» Spinning Capacity:» In China => 1 Million Spindles (Current)» In Vietnam => 0.5 Million Spindles (Until end 2015)» Annual Production Capacity:» 100,000 Tons in 2014» 160,000 Tons in 2016 Vision for Sustainability» After joining BCI, we keep increasing use of BCI Cotton» Always keep stock for BCI cotton for 3000 to 5000 tons to meet retailers needs» Keep Supporting to Retailers to meet their goal/corporate target in using BCI cotton» Encourage new innovation in product development concerning eco-friendly; Eco Fresh Yarn» Reduce Use of Electricity, Water, Dye Stuff in Dyeing Process» Accompany with BCI cotton» Double Eco-Friendly 15

16 Bros Eastern Co. Ltd. (2/2) Contribution to BCI» Commit to build strong marketing strategy for BCI» Perform monitoring for all BCI works» To work as a pioneer to promote BCI using our global retailers platform in order to accelerate the acknowledgement for BCI» Act Proactively to build up the network for our members between retailers and manufacturers 16

17 Huafu (1/2) About Huafu» Established in 1993» The largest top dyed mélange yarn supplier throughout the world» Provide high-end top dyed mélange yarn to mill and retailers» Listed in Chinese stock market in year 2008 as the first mélange yarn manufacturer» Exclusive innovative mélange yarn pilot plant in China, which is nominated by Chinese government» Global Market: Asia, Europe, America, Africa» Production Base: Zhenan, Shangyu, Huanghuai, Changjiang Xinjiang» Production Capacity: 1,350,000 spindles in 2014» Mission: Care for people, color the world» Philosophy: Take social responsibility, improve life quality» Values: Sustainable Development, Environment Protection, to be a world class yarn kingdom through efforts of generations 17

18 Huafu (2/2) Huafu & BCI» What BCI brought to us and our actions?» Provide job opportunities for local resident» Provide reasonable salary for growers» Cost saving due to the proper irrigation and pest management» Gains in yield» More well trained growers and producers in Huafu BCI fields» Provide job opportunities for minorities» Equal work for equal pay» Keep children and pregnant women from field» Build houses for the cotton producers in our BCI field» Sign Labour contract with growers up to 98%» What are our motivations for being on the BCI Council?» Huafu agrees the concept and policy of BCI. Huafu is willing to take more social responsibilities to improve the living condition of famers, provide training opportunities and protect environment. Huafu also believes that only sustainable development could promote a better tomorrow of yarn industry. 18

19 Jiangsu Yueda Textile Group (1/2) Company Profile» Jiangsu Yueda Textile Group Co. Ltd. was founded in Sept. 2003, which is a hi-tech enterprise mainly producing yarn, fabric, garment, home textile and industrial textile.» The current annual production capacity of Yueda Textile now reaches: 25,000 tons of high-grade ring spinning, compact, siro, vortex, OE yarn; 1,800 tons of mercerized cotton yarn; 3,000 tons of dyed yarn; 6,000 tons of dyed fiber; 12,000,000 meters of laminated fabric; 4,000 tons of knitting fabric; 40,000,000 pieces of knitting garment; 15,000,000 meters of home textile fabric; 2,000,000 units of home textile; 4,000,000 meters of automobile fabric; 1,500,000 units of automobile carpet.» Yueda Textile business scope includes garment and apparel fabric production and international trading, etc.» There are totally 25 factories located in mainland of China, Vietnam, Cambodia, Mexico, Swaziland and other countries and regions, and besides Chinese market the products are also sold in USA, Africa, etc. 19

20 Jiangsu Yueda Textile Group (2/2) The original intention of joining in the BCI and our oath» In Jan 2013, we applied to join in BCI, and were confirmed to be the member of BCI in May Through the promotion of Better Cotton, to make it be sustainable & common & bulk products, then shift the cotton production method in the worldwide.» Yueda Textile Group has got the certificates of ISO9001:2008 IS014001:2004, OHSAS18001, ISO50001:2011 ; and also has got Safety standardization certificate, organic cotton certificate, Oeko-tex Standard 100 certificate and so on.» We develop the use of Better Cotton in our products actively and supply the products to XURONG Group, SHENZHOU Group, LUTAI Group and so on, the end users are famous brands as IKEA, H&M, UNIQLO, ADIDAS and so on.» We promote our customers to use Better Cotton actively. We cooperate with IKEA, H&M, UNIQLO and other world famous companies to promote a sustainable development of textiles.» Yueda Textile use and promote new technologies, use energy-saving and environmental protection equipment, to reduce the labor intensity of workers, and create a healthy and safe working environment.» Cooperate with CNTAC (China National Textile and Apparel Council) to do cotton plant and cotton processing, develop better cotton base 10,000 hectares in Zimbabwe, and will increase to 20,000 hectares in 2014; Plan to develop BCI project in Swaziland; Plan to develop better cotton base in Xinjiang China; Cooperate with Taiwan Texray Group to develop better cotton base in Ethiopia. We will do efforts to succeed these activities.» Establish good procurement cooperation with American Louis Dreyfus (Beijing) Trading Co. Ltd,, Allenberg Cotton Co., and Singapore Olam International Ltd. purchase Better Cotton from India and Brazil, support some countries and enterprises to plant better cotton.» As a model of Chinese spinning enterprises, if we become BCI council member, we will act as the representative of BCI, to complete the mission of BCI together. We will actively lead, not only do BCI project well by ourselves, and also promote the project in the whole textile industry. 20

21 Louis Dreyfus Commodities David Cavalleri (1/2) What we have achieved in relation to BCI since we have joined it?» We have been very pleased to be marketing increasing volumes of Better Cotton around the world, both as Better Cotton but also as Cotton Made in Africa.» As a truly global player involved with all origins and destination, we are looking forward to the challenge of spreading the mantra and principles of the BCI to more territories in the hope that the ambition of making all cotton better can ultimately be achieved 21

22 Louis Dreyfus Commodities David Cavalleri (2/2) What are our motivations for being on the BCI Council?» As our handling of Better Cotton volumes increases and diversifies, so our desire to be more engaged in driving the Better Cotton agenda gathers momentum.» As a sizeable player in the agricultural commodity space, we believe we have a lot to offer the BCI, especially through our active participation in all the other roundtables (RSPO, RTRS, Bonsucro, Sustainable Rice Platform) the experience we glean from our engagement in other value chains could be of great value to advancing the Better Cotton agenda.» In addition, being involved in all major global flows of cotton will allow us to bring an international perspective to the benefit of all members. 22

23 Plexus Peter Salcedo (1/2) Mission: To inspire positive change in the way the world looks at cotton, by promoting sustainable cotton agriculture, increasing supply-chain transparency, and building long-term stakeholder partnerships. Small Holder Farming Uganda, Mozambique, Malawi & Zimbabwe» 250k+ farmers; 1 million+ dependents» 7 gins» 125k MT+ lint capacity» Majority CMiA verified / BCI qualifying» Education & development activities» Retailer partnerships Global Trading» About 1 million bales» 25 origins, about 220 suppliers» 32 sales markets, about 300 customers, Mechanised Farming» Building commercial agricultural operations in Sub-Saharan Africa» Local government partnership» Adding value & creating jobs» Demonstrate best practise in sustainable farming techniques» Partnership model (IDC in Mozambique) Textile/Germent Production» Vertically integrated JV in Uganda.» Strong government support» CMIA/BCI African sustainable cotton» Supply-chain partnership from farmer to global retailer» Sustainability & traceability built in» Adds value instead of exporting it» Strong retailer demand 23

24 Plexus Peter Salcedo (2/2) What can Plexus bring to the BCI Council? Breadth of activity, experience, values & dynamism. Farmers Ginners Respect Authenticity Traders Standards / Initiatives Spinners Knitters Good Business Innovation The Long Term Retailers, Brands & Designers Manufacturers 24

25 Spectrum International Amit Shah (1/2) Who we are?» Spectrum International, part of a 75 year old Textile Group is a leading force in the farming, ginning, spinning and garmenting of 100% sustainable and organic fibres & textiles in India.» The promoters as a family have been in the textile business for over 3 generations.» A BCI implementation partner, Spectrum will in season work with over 16,000 farmers producing over 45,000 MT of Better Cotton and Cotton Yarn. Why us?» In our 3 rd year, we bring to the table a clear perspective on the evolution of Better Cotton and its projected trajectory.» Involved in the value chain from farm to retail, we understand the challenges that are faced by each participant of the program be it the farmer, ginner, spinner, fabric and/or garment manufacturer.» Operating from India and supplying to global manufacturers, we have a special insight into specific geoeconomical dynamics not only of Southern but Far East & South East Asia as well as the Middle East. 25

26 Spectrum International Amit Shah (2/2) A little about me» A post-graduate with a Masters in Business Administration from Boston, MA, USA.» Pioneered Organic farming within the group back in 1998 becoming the 2nd in India to do so.» Hands on experience of over 16 years managing farming projects, ginning and spinning.» Committed to the sustainable cause by producing and selling ONLY sustainable fibres and textiles. Parting thoughts» As BCI usage grows around the world, a pan vertical representation of the manufacturers and suppliers is crucial.» Spectrum and I bring that unique advantage of combining experience, skill and commitment that should help understand challenges for this group selling products made from Better Cotton.» I commit to invest time and energy to ensure that Better Cotton pickup in your respective supply chains increases through more transparency and greater fluidity. I look forward to your support of my candidature in the select category during the upcoming BCI Council elections

27 Yuyue Home Textile Co. Ltd. (1/2) What we have achieved in relation to BCI since we have joined it?» Since March 2013 when we formally joined BCI, we know and understand Better Cotton more comprehensively, especially planting, usage of Better Cotton.» Purchasing 3873 tons Better Cotton in 2012/2013 fiscal year; Company has purchased 5723 tons Better Cotton from 12/2013 to 05/2014, and the 2013/2014 fiscal year is expected to purchase 7000 tons.» We actively promote the use of Better Cotton.» The current usage of Better Cotton has accounted for more than 60% of all cotton.» We are in the leading position in the Asia Pacific region.» Our company promoted the development of BCI cotton used, also promoted the healthy development of the low-carbon economy enterprise environmental protection, satisfying the market demand and winning the good social effect. 27

28 Yuyue Home Textile Co. Ltd. (2/2) What are our motivations for being on the BCI Council?» To create an environmental-friendly, colourful and comfortable lifestyle through superior technology, is our vision that is the same with BCI association s vision. We want to be the outstanding global supplier of the textile industry, use scientific and technological capabilities of excellence for global customers with high quality, user-friendly home products, to enhance the quality of human life.» To promote the economy, environment, nature, culture, society, and other resources commonly development. To better perform company's mission and social responsibility.» To enhance the core competitiveness of enterprises, adapt to economic globalization; The ability of to create an environmental-friendly, colourful and comfortable lifestyle can be improved. 28

29 Full size image: 1. Insert, Picture 2. Send Backwards twice to make text and arrow appear 3. Use an image which shows title text clearly General Assembly 29

30 General Assembly Have you signed up yet? MONDAY 23 June New member introduction Member briefing on General Assembly Cocktails meet the Council candidates TUESDAY 24 June Market update breakfast General Assembly voting and elections Annual Membership Workshop Membership dinner WEDNESDAY 25 June Training sessions Council meeting 30

31 General Assembly How to register» Register for the General Assembly by following this link: Use the registration code MEMBER (225 EUR)» Those who cannot attend can vote electronically in advance (details given on the link above) 31

32 Questions?

33 Next steps» Any questions for the Council, please » Guido Verijke, Chair - chair@bettercotton.org» Hammad Naqi, Vice-chair - vice-chair@bettercotton.org» Leon Picon, Treasurer - treasurer@bettercotton.org» Bilal Israel Khan, Secretary - secretary@bettercotton.org» Any questions for the membership team, please membership@bettercotton.org» Last chance to nominate your organisation, deadline to hand in Council Candidature Form is 31 May» See you at the General Assembly, June in Amsterdam! 33