Minutes

58th Meeting of the Expert Panel on Social, Environmental, and Economic Performance of Cotton Production – SEEP

Tuesday, 19 March 2024, 11:00 am Bremen Time

In-Person and Virtual – Teams

 

 

Members:

Allan Williams, Australia

Jens Soth, Helvetas

Bruno Bachelier, CIRAD

Ryan Kurtz, USA

Natalie Ernst, BCI

Elke Hortmeyer, Bremen Cotton Exchange

Leon Picon, Türkiye

 

            Observers:

Kater Hake, former SEEP member, USA

Mark Messura, Cotton Inc, USA

Neal Gillen, USA

Terry Townsend, USA

Philippe Saner, Head Sustainability, Reinhart

Long Nguyen, Dragontextiles 2, Vietnam

Wolfgang Bertenbreiter, CmiA/AbTF

Fatih Dogan, Türkiye

 

ICAC Secretariat:

Lorena Ruiz, Economist

Keshav Kranthi, Chief Scientist

Usman Kanwar, Head of Textiles

Eric Trachtenberg, Executive Director

 

  1. Introduction and Approval of the Minutes from the Meeting in India

The meeting commenced with each participant introducing themselves. Allan Williams, Chair of SEEP, expressed his regret for being unable to attend the meeting in person. Lorena Ruiz, ICAC secretariat, informed attendees that the Regenerative Agriculture practices report in English was already available on the ICAC website.

  1. Presentation on Regenerative Agriculture Gap Assessment Study in Tanzania – Philippe Saner Reinhart

Dr. Philippe Saner introduced himself and provided a context for his involvement and presentation at the meeting. He outlined his responsibility for sustainability at Reinhart and mentioned a specific project that had been conducted recently in Tanzania. This project was related to regenerative agriculture practices and their implementation among Tanzanian cotton farming groups. The main findings from his presentation included:

  • Partial Implementation of Regenerative Practices: The study revealed that while some regenerative practices were being implemented, there was significant variation among the groups assessed. The level of implementation ranged from partial to more advanced, indicating a spectrum of adoption rates across different entities.
  • Challenges in Crop Production Practices: Key challenges were identified in implementing regenerative practices related to crop production, such as cover cropping, crop rotation, and intercropping. Factors like land size, ownership, and existing regulations (e.g., the ban on intercropping by the Tanzania Cotton Board) were cited as barriers.
  • Agroforestry and Livestock Management: The study highlighted agroforestry and regenerative livestock management as areas with room for improvement. These practices were not fully adopted due to various challenges, including land availability for planting perennial crops and the need for better animal welfare awareness and practices.
  • Biodiversity, Water, and Energy Considerations: Biodiversity protection, water management, and energy usage were identified as areas where regenerative practices could be enhanced. Specifically, the study pointed to the need for better management around watercourses, rainwater harvesting techniques, and renewable energy sources, noting that current energy and water management practices were not aligned with regenerative standards.
  • Soil Health and Management Practices: A significant finding was the lack of soil health monitoring, such as soil tests and analysis, which are crucial for assessing and improving soil quality under regenerative agriculture. This gap underscores the need for training and resources to enable farmers to conduct soil health assessments effectively.
  • Governance and Performance: Governance-related aspects, such as labour practices and community involvement, were areas needing attention. The study called for improved training and awareness to ensure practices like child labour are properly understood and managed.
  • Economic Viability Concerns: The presentation touched on the economic considerations of transitioning to regenerative agriculture. Despite the potential for yield improvements, concerns were raised about the cost of certification, the availability of premiums for regenerative cotton, and whether these factors would be sufficient to offset the additional labour and management efforts required by farmers.

 

Q&A Session

Following the presentation, there was an interactive question-and-answer session. Participants inquired about specific aspects of the study, including methodologies, results, and the potential for scaling up regenerative practices in Tanzania and other regions:

  • A question about the specific reasons why certain regenerative practices were not fully implemented was asked. Dr. Saner explained that the challenges were multifaceted, including technical hurdles, legal restrictions on practices like intercropping, and a lack of awareness or training among farmers. He highlighted that, despite these challenges, there was a positive disposition towards adopting regenerative practices.
  • The topic of zero tillage was brought up, questioning its evaluation in the study. Dr. Saner acknowledged the importance of zero tillage in regenerative agriculture for improving soil health but indicated that more training and demonstration projects might be necessary to convince farmers of its benefits.
  • The discussion touched on the economic viability of regenerative practices. Questions were raised about how these practices impact yield and whether the additional labour costs could be offset by premium pricing for regenerative cotton. Dr. Saner pointed out that while organic cotton production in Tanzania resulted in a yield increase, it also incurred higher costs, making the sustainability of premiums a critical factor.
  • Another line of questioning involved the assessment of carbon sequestration and other environmental benefits of regenerative practices. Dr. Saner mentioned that soil health assessments and carbon measurements were part of the standards being considered, but the depth and methodology of these assessments varied.

Discussion and Points Raised

  1. Economic Viability and Market Dynamics

A significant portion of the dialogue centered on the economic aspects of implementing regenerative practices. Participants debated the viability of such practices without a guaranteed premium for regenerative cotton. The concerns were twofold: the potential increase in production costs and whether the market is willing to compensate for these additional expenses. It was acknowledged that while organic cotton production in Tanzania had led to yield improvements, the higher costs associated with organic farming highlighted the need for a sustainable premium to make it economically viable.

  1. Soil Health and Carbon Sequestration

The discussions delved into the importance of soil health, with a focus on practices like zero tillage and cover cropping. The role of regenerative agriculture in enhancing carbon sequestration was highlighted as a critical environmental benefit. However, participants noted the challenges in measuring and verifying the impact on carbon levels, emphasizing the need for accessible and reliable methods for soil health assessment and carbon measurement.

  1. Training and Capacity Building

The necessity for comprehensive training and capacity-building programs emerged as a consensus among the participants. It was recognized that for regenerative agriculture to be successfully implemented, farmers need more support in understanding and adopting new practices. This includes overcoming technical barriers, enhancing knowledge on the benefits of regenerative practices, and addressing misconceptions about soil management and crop rotation.

  1. Policy and Legal Frameworks

The discussions touched on the need for supportive policy and legal frameworks to facilitate the adoption of regenerative practices. This includes revisiting regulations that currently hinder practices like intercropping and exploring policies that encourage sustainable agriculture practices. Participants urged for advocacy efforts to influence policy changes that support regenerative agriculture.

  1. Collaboration and Stakeholder Engagement

A recurring theme in the discussions was the importance of collaboration among all stakeholders in the cotton supply chain. From farmers and traders to researchers and policymakers, there was a call for a unified approach to promote regenerative agriculture. Participants discussed the potential for partnerships to conduct further research, share best practices, and pilot innovative projects that could demonstrate the benefits of regenerative practices on a larger scale.

Follow-Up Actions Proposed

To address the insights and challenges discussed, several follow-up actions were proposed:

  • Enhanced Data Collection: Initiatives to gather more comprehensive data on the impacts of regenerative practices, including yield improvements, soil health benefits, and economic viability.
  • Policy Advocacy: Efforts to engage with policymakers and regulatory bodies to create a more conducive environment for regenerative agriculture.
  • Research and Pilot Projects: The establishment of research projects and pilot programs to test and demonstrate the effectiveness of regenerative practices in various contexts.
  • Farmer Support Programs: Development of training and support programs for farmers to facilitate the transition to regenerative practices.
  • Market Development: Strategies to develop markets for regenerative cotton, including exploring opportunities for premiums and other incentives.

 

  1. Regenerative Agriculture Practices – Second Phase

Towards the end of the meeting, discussions centered around the next steps for advancing the implementation of regenerative agriculture (Regen Ag) practices. Allan Williams, chair of SEEP, highlighted ongoing work on a Phase Two report, which aims to build upon the foundational insights provided in the Phase One report. The approach includes engaging with individual panel members through interviews conducted by Dr. Kater Hake.

Follow-Up Actions Proposed

Several follow-up actions were proposed:

  • Interviews with Panel Members: Kater Hake is set to conduct interviews with panel members to gather their insights and opinions on the next steps for promoting Regen Ag practices. These discussions are intended to gather diverse perspectives on regenerative agriculture practices, their implementation, and the necessary steps forward.
  • Case Studies: The development of case studies is planned as part of the Phase Two report. These case studies will explore the real-world impacts of adopting Regen Ag practices, highlighting both successes and challenges. This includes examining significant yield improvements in places like Zambia and understanding the broader implications of specific requirements set by retailers and brands.
  • Addressing Market Dynamics: The discussions acknowledged the reality of market dynamics, particularly the issue of disappearing premiums for sustainable products. This underscores the need for the cotton industry to consider the risks and rewards associated with Regen Ag practices, beyond the expectation of premium pricing.
  • Advocacy and Resource Provision: One of the outlined objectives is to equip ICAC members and governance bodies with the necessary information and resources to advocate for and implement Regen Ag practices effectively. This involves not only enhancing their understanding but also preparing them to engage in broader discussions about sustainable agriculture within the cotton industry.

 

  1. Other matters

Allan Williams expressed sincere gratitude to all participants for their active participation and valuable contributions during the meeting. The meeting was officially adjourned at 12:30 pm (Bremen time).