Simon Corish Deputy Chair, Cotton Australia

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1 Keynote Address Simon Corish Deputy Chair, Cotton Australia WHAT DO CONSUMERS WANT? THE WAY FORWARD FOR AUSTRALIAN COTTON 2014 NFF Congress Simon Corish Deputy Chairman Cotton Australia 1

2 SUMMARY About Cotton Australia What we re doing Why we are doing it Cotton to Market Strategy The future COTTON AUSTRALIA 2

3 THE WORLD IS CHANGING 3

4 4

5 WHY? Falling market share Confidence in cotton Positioning our brand Leveraging our investment Future proofing A COMPELLING STORY Superior Value Highest Quality Reliable Responsible, Ethical Cotton Production Major World Exporter with Capacity to Expand 5

6 HOW DO WE TELL IT? COTTON TO MARKET STRATEGY COTTON LEADS A commitment to the supply and use of responsibly-produced cotton through national and international efforts. A partnership between the Australian and US cotton industries. 6

7 7

8 358 Cotton Products 8

9 OPPORTUNITIES TO TELL OUR STORY 9

10 Dani Baker Corporate Responsibility Manager F&F Clothing Tesco Group Commercial Hi Adam, Good news, since we met, we have added Australian and US cotton into our more sustainable cotton portfolio. We have had very positive feedback from our suppliers, particularly in China, about this announcement which is great. 10

11 225+ PARTNERS THE FUTURE FOR COTTON LEADS Sign up more partners, with an emphasis on brands Engage with the partners we have to increase cotton usage (confidence) Collaboration with the US Cotton Inc Technologies for Australian brands Global Lifecycle Assessment Research collaboration 11

12 BETTER COTTON INITIATIVE (BCI) BCI is a not-for-profit organisation stewarding global standards for Better Cotton, bringing together cotton s complex supply chain, from the farmers to the retailers Partnership agreement signed in June 2014 mybmp-certified cotton can now be shipped as BCI Cotton Making global cotton production better for the people who produce it, better for the environment it grows in and better for the sector s future. 12

13 Brand & Retailer Members of BCI Can BCI Achieve Scale & Impact? Number of Farmers Engaged 890,000 MT Better Cotton Produced 1,860, %.7% 2.3% 3.7% 7.3% % Share of Global Production 13

14 The Challenge By 2020 Better Cotton Is:» 5 million farmers» > 30% of global production The Business Case 20% of jeans will be Better Cotton by 2015 Targeting 100% Better Cotton by % of cotton will be sustainable by % Sustainable Cotton in Group by % Sustainably Sourced Cotton by % Sustainable Cotton by 2020 And many others: 14

15 OPPORTUNITIES TO TELL OUR STORY Yield Record in Australia kg / ha 1500 World Average

16 Insecticide use (grams active ingredient per ha) Total Insecticide Use (grams a.i./ha) 3 Year Moving Average Season 1995/ / / / / / / / / / / / / / / /12 Total Insecticide Use kg a.i./ha % Water Use Efficiency Gain Incremental Improvements Australian Cotton Water Footprint (1000L/MT of lint) Water USe 1000L/MT of lint

17 THE FUTURE FOR BCI Leverage position on the council Engage with BCI to tell our story Grow participation in mybmp Work with BCI to deliver benefits to Australian growers AUSTRALIAN COTTON BRAND Targeting iconic Australian brands Major Australian retailer with 100% Australian cotton in production 17

18 OPPORTUNITIES TO TELL OUR STORY AT HOME Success underpinned by mybmp Developed 20 years ago in response to environmental audit On-line, farm-based system 600 practices, 11 modules Underpinned by Research & Development Independently audited 18

19 Thank you 19

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