If organic
and sustainable cotton is going to compete successfully on a global scale, Simon Ferrigno
argues that a sustainable pricing system needs to become a reality.
Unlike conventional cotton, organic cotton has no mechanism for price setting or discovery. This puts many producer groups, some traders and others at a disadvantage when selling, as they lack the right decision making information on prices to use as a basis for negotiation.
Yet price is central to sustainability - unstable prices and
speculative behaviours are inherently contradictory to sustainable markets that
require long term relationships and investments in environmental and social
responsibility.
