Page 18 - 11 Cotton SA March 2017

Continued from page 17
the first year of
Subsequently Woolworths and Edcon implementing the BCI Sector Strategy was
base, a Cotton
also joined the Cluster and we are selected producers. The
standard with
developed to pave the way for the
programme will
revitalisation of
developing pilot ISCPs for both, while be extended to include the industry. This
all producing areas during the next two
expanding the Mr Price Group program- demand-led strategy translates import
years.
mes. Although the Cluster currently takes replacement by local retail into growth
up close on 30% of local production, it is and transformation opportunities for the
▪ In order to find a cost-effective harvesting
anticipated that future demand will industry. These are
solution for dryland commercial farmers,opportunities
consume the bulk of the local cotton significant, and
the Cluster successfully demonstrateda mere 25% import
the Stripper Ha
crop. The ISCP model received inter-rvester technology and
replacement on four basic retail product
several of these
national recognition as leading business harvesters will now be
categories will require more than 50,000
model for virtual supply chain inte- metric tons of
used to harvest the crop this season. additional cotton lint, an
gration at the Global Textile Exchange upgrade of ginning facilities, 60,000 tons
▪ It was further important to investigate
Conference in Germany last year. ways to increase the farmernning capacity, etc.
alternative
of new cotton spi
income through p
▪ In support of the ISCP model, the Clusterrocessing cotton seed production increased
▪ Although cotton
into valuable by-p
completed the development of a Cloud-roducts. Due to the cost
more than 200% from 2013, South Africa
based Information Systems Platform that has the potential
sensitive competitive nature of the edibleto produce 100,000
traceability,
caters for item-level oils market, the Cluster decided to
tons of lint, close to the record crop of
consider
sustainability compliance and supply products and
alternative 1989.
chain management from fibre production
contracted North-West University to
GOING FORWAR
to retail point of sale. Its design receiveded crude oil for bio-D
analyse cotton se
paraffin purposes. Results indicated that
an Innovation Award at the 2015 Implementing a national sector strategy
Outsystems Global Conference in Lisbon, will require subs
the quality of the oil is ideally suited fortantial funding and
Portugal. Implementation and aviation fuel. The Cluster
refining into
resources, and the Cluster developed a
demonstration of the Platform is proposed solution based on international
scheduled for completion this season. research and on similar circumstances in
▪ Building on the foundation of the ISCP other countries. The proposed solution is
and the Information Systems Platform, a weight based Industry Development Levy
we were able to continue with the on imported cotton products. The proposal
development of innovative supply chain is to simultaneously reduce the current
finance and risk management solutions. Advalorum Duties on these products to
The Cluster worked with various financial zero. The strategy and proposal, also aimed
institutions to change the risk perception, at drastically reducing illegal imports and
and successfully implement off-balance resolving the fabric issue, was presented
sheet trade finance solutions for Spinners to Mr Garth Strachan, Dti Deputy Director-
and Ginners. We are also piloting a General responsible for industrial policy,
similar solution for Farmer finance this at the Cotton SA board meeting in
season in addition to a bespoke insurance November last year. The Dti supported the
teamed up with SAA and Boeing for
solution to consolidate supply chain strategy and proposed solution and will
furth
insurance into cell captives.er testing and as it stands today, all
work closely with the Cluster to prepare a
technica
final solution and regulation for
an
▪ The Cluster identified that l tests have been completed and
we are testing various costing models. approval by National
independent world-class HVI laboratory presentation and
SAA might well be flying on cotton seed
will be a key contributor to the Government during the next two years.
biofuel very soon
competitiveness of the cotton industry.
value chain. This resulted in the The Cluster init requires
▪ The Cluster conducted extensive researchiative
spanning the ent
upgrading of the laboratory facilities atire industry covering achange and managing
transformational
this change at al
diverse range of
Cotton SA. The Cotton SA HVI Laboratory topics, from a historicl levels of the cotton
view of the industry, to the issues
became the first in the world to receive industry value chain has without any doubt
impacting the current status and those
ICA Bremen certification and is today still been the biggest challenge in moving the
the only facility in Africa with this status. industry forward
informing the future. Most prominent. However, these very
was a Demand Study that quantified local
It plays an important role in supporting circumstances are also slowly unifying the
transparency, traceability, and global industry again, and the successful
retail demand and confirming that cotton
is a pref
benchmarking for the industry.erred fibre, with a 60% market of the strategy will
implementation
▪ Sustainable production is a global trend definitely be the proverbial rising tide that
share. This demand equates to 300,000
that is at the forefront of sourcing cotton lint. The Cluster
metric tons of
lifts all ships.
subsequently completed audits on more
strategies of most retailers and brands.
than 170 textile manufacturers to
Cotton producers in America and I would like to thank each and every cotton
industry value
Australia developed and benchmarkedcapacity, capability, chain stakeholder that
determine the
contributed to the profound progress we
their own national standards for compliance, etc. of the
competency,
continuous Audits). This extensive
sustainability and industry (C6 have made to date, and we look forward
research laid
to growing the industry and this country to
improvement programmes. These the foundation for the
development of an industry strategy for
programmes are equivalent to the global the benefit of all.
the Cotton Sector.
Better Cotton Initiative (BCI) standard.
▪ Through
inclusive _________
an
The Cluster opted for the same process to industry
engagement process and utilising the
put South African producers on the same
Cluster’s comprehensive intelligence
level and we have successfully completed
18