Trade with Organic and Fair Trade Cotton, Phase III

Project completed

This consolidation phase continues to aim at alleviating poverty of small and medium sized cotton farmers through the development of certified organic and fair trade cotton value chains for the international market. The focus will be on assuring the economic and institutional viability of the program

Country/region Period Budget
Kyrgyzstan
01.10.2012 - 31.12.2016
CHF  2’054’000
Background

The Organic Cotton Production and Trade Promotion Project (BCP) is a SECO financed project, implemented by HELVETAS Swiss Intercooperation. The project promotes the development of organic sector and organic value chains in Kyrgyzstan. The third phase of the Bio Cotton Project was approved by SECO at the end of 2012. The main objective of Phase III is designed for consolidation and based on exit strategy in the midterm perspective to institutionalize BCP approach completely into the local context.

Objectives

The objective of the consolidation phase is to ensure economic and institutional sustainability of the producer organizations managing the organic and fairtrade value chains in Kyrgyzstan by 2016. The program shall contribute to the overall goal of enabling a significant and growing number of farmers to improve their livelihoods in a sustainable way by adopting organic farming and by selling their produce via fair-trade value-chains. in other words, "the producer organisation ACSC and the service provider Bio Service operate sustainable businesses in an organic market system which is populated by an increasing number of actors from the private and public sector and is embedded in a conducive environment".

Medium-term outcomes

(1) to diversify and intensify production systems,

(2) to enhance competitiveness and business strategies,

(3) to improve marketing and market development,

(4) to strengthen management capacities of producer organizations and

(5) to work towards a conducive environment and sector development.

Results

Expected results:  

Diversified product basis of producer organisations (ACSC and others), min. three commercial crops produced

Gross margins of cotton >125% of conventional farms

>15% price premium through better quality, labelling and processing

Co-existence with GMO crops well managed

Draft law on GMO available

Cost prices competitive at global mar-ket level

Break-even of both partner organisations by 2015

Appropriate marketing strategies for supported products developed and applied

Brand and distribution channels are developed

Stable and mutually benefiting partnerships along the whole value chain

Brand and distribution channels are

ACSC and Bio Service have sufficient capital reserves (equity) by 2016

Professional business management and marketing developped

State laws are fully supportive of the Kyrgyz organic sector (draft law on organic available)

Additional income from organic production of main crops compared to conventional farms


Results from previous phases:  

Within the period of its operation, BCP project experienced III phases: Phase I (2003-2006), Phase II (2007-2011) and Phase III (2013-2016), the last current phase.

In the first phase (2003–2006), the project focused its activities on raising awareness, capacity building and market research to efficiently initiate trade promotion of agro products. The project was mainly targeted to develop the production and commodity chain of organic cotton and it’s by-products in both the domestic and international markets. BCP had obtained a purchase guarantee from a cotton retailer in Switzerland thus enabling vertical integration of organic cotton producers and sellers.

In the second Phase (2007 – 2010 and prolonged to 2011), BCP changed its role, from an implementing agency (phase 1) to an advisory structure or value chain facilitation (phase 2). Gradually the local structures became the direct partners of the key stakeholders along the organic value chain.


Directorate/federal office responsible SECO
Credit area Development cooperation
Budget Current phase Swiss budget CHF    2’054’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    1’300’000
Project phases

Phase 3 01.10.2012 - 31.12.2016   (Completed)