Last week Wal-Mart purchased more than 12 million pounds of transitional cotton at the premium price for organic cotton from farmers switching over to organic farming methods. The purchase removes a major stumbling block for many farmers looking to switch to organic methods and represents the biggest single shift in retail apparel toward organic cotton and could speed acceptance of the green apparel niche.
To be certified as organic cotton, cotton must be grown in fields that are free from chemical pesticides and fertilizers for at least three years. That three-year period before certification usually results in increased production costs for farmers but a cotton product that cannot yet be sold for a premium because it is not considered completely organic. That transitional cotton will be purchased by Wal-Mart from approximately 1,000 farmers and should help spur cotton production. Ultimately, having Wal-Mart as a buyer should lead to lower prices on organic cotton for the whole apparel industry.
"It was a big step and an important step," says Anthony Corsano, CEO of Anvil Knitwear (asi/36350). "I was very pleased to see them take that step. It's the Wal-Marts of the world that will make organic cotton mainstream. We cater to a market that, if it makes fiscal sense and it supports their company philosophy, they'll use organic. But when you start getting it into a Wal-Mart in every nook and cranny in the country, that's a really good thing."
