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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • The nature of forced labor and child labor risk varies significantly by country, so understanding a company’s geographic sourcing footprint is critical. In many countries with labor risk in cotton production, the risk is linked to contextual factors such as low earnings and incomes for small producers and workers, sharecropping arrangements, or induced or inherited indebtedness. In these contexts, traceability to the level of individual producer may be less critical, as a broader approach is required to address labor risk.
  • In a small number of countries, the state sponsors forced labor, which increases the risk of labor rights abuses. In these countries, approaches to remediating risks and impacts at the producer level are not viable. To comply with importing country regulations, companies seek to eliminate sourcing from countries with state-sponsored forced labor. In some cases, import country regulations require importing companies to offer origin assurances specific to a physical batch of cotton or product made with cotton. Traceability approaches like forensic testing can confirm the geographic region of production of a batch of goods but are not likely to be practical for large-scale implementation.
  • The structure of cotton production and downstream supply chains vary greatly between producing countries. In some countries, cotton production is largely mechanized and takes place on larger scale commercial farms. Such countries often have a lower risk of forced and child labor in their cotton industries. In other contexts, production takes place primarily on smallholder farms. Traceability systems implemented in these contexts should be accessible to smaller producers and those with lower financial and technical capacity.
  • Cotton goes through multiple points of aggregation and transformation between cotton production and integration into consumer products. Linked downstream tiers, like yarn spinning, textile production, and garment production may also present labor risks. Traceability approaches must account for this complexity in order to be feasible in these contexts.

Nature of Labor Rights Risk/Vulnerable Workers

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence of other vulnerable workers

Documented presence or significant likelihood of third-party labor recruiters

Features of Production and Supply Chain

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex, opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

Distribution of Labor Risk in Various Production Areas

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

Linked Upstream and Downstream Risks

Risk in Nodes in Cotton Production

The risk of child and forced labor exists at multiple nodes of cotton production. Cotton production can be categorized into five stages. In the first stage, production begins with the sowing of cotton seeds in ploughed fields.28Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. The cotton plant takes approximately five months from germination to boll maturation.29Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. It can then be harvested manually or mechanically. Forced and child labor is prevalent on farms where cotton is harvested by hand.30Child Labour in Cotton Supply Chains, Fair Labour Association, June 2017, https://www.unicef.nl/files/child_labor_in_cotton_supply_chains_june_2017.pdf. The quality of the cotton can decrease if it is improperly harvested, contaminated with foreign materials, or poorly stored.31Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. The second stage features ginning. Ginning is the separation of the cotton lint from the cotton seed.32Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. The cotton is cleaned and pressed by the ginner.33Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. Ginning usually takes place in the country that the cotton is produced in.34Child Labour in Cotton – A briefing, International Labour Organization, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_ipec_pub_29655.pdf. Ginning can be a dangerous process for those who work without protective clothing because breathing in white cotton dust can cause respiratory problems. Children are at special risk; there are reports that child labor exists in the factories where the ginning takes place.35The Children Behind Our Cotton, Environmental Justice Foundation, 2007, ejfoundation.org/resources/downloads/The-Children-behind-Our-Cotton-FINAL_small.pdf; Forced Labour and Child Labour in the Cotton Industry, World Vision Action, 2012 www.worldvision.com.au/docs/default-source/buy-ethical-fact-sheets/forced-and-child-labour-in-the-cotton-industry-fact-sheet.pdf?sfvrsn=2. The third stage features trading. Trading is when cotton is bought and sold, often multiple times, between producers and buyers. Trading can take place domestically or across international borders.36The Children Behind Our Cotton, Environmental Justice Foundation, 2007, ejfoundation.org/resources/downloads/The-Children-behind-Our-Cotton-FINAL_small.pdf. The fourth stage, manufacturing, encompasses the spinning, dyeing, weaving, knitting, and assembling of cotton materials into finished textile products. At this point, the cotton is worth several times more than the value of cotton at the production stage. Finally, in the fifth stage of distribution, finished textile products are transported to retailers.

Cotton Farming

Ginning

Spinning

Trading

Distribution

Associated Upstream Goods with Labor Risk

The production of hybrid cottonseeds, which can be used to produce cotton with a higher degree of fiber quality, is strongly associated with child and forced labor.

Associated Downstream Goods and Consumer Sectors

Textiles Apparel and Luxury Goods

Cotton lint is commonly manufactured into thread and yarn that are used to produce.

Food and Beverage

Cottonseed, which is discarded during the ginning stage of production, can be used to make cottonseed oil and as feed for cattle.

Top Global Countries

  1. China37List of exporters for the selected product in 2021. Product : 52 Cotton. ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c52%7c%7c%7c2%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c%7c1
  2. India
  3. United States of America
  4. Vietnam
  5. Brazil
  6. Pakistan
  7. Turkey
  8. Uzbekistan
  9. Australia
  10. Italy
  1. China38Crops and livestock products. Food and Agriculture Organization of the United Nations, www.fao.org/faostat/en/#data/QCL.
  2. India
  3. United States of America
  4. Brazil
  5. Pakistan
  6. Turkey
  7. Uzbekistan
  8. Australia
  9. Mexico
  10. Benin

 

Examples & Resources: Traceability Efforts Associated With Cotton

Footnotes