1. business and industrial
2. chemicals industry
3. dyes and pigments

Request for Expressions of Interest:
Host organisation for the Organic Cotton Accelerator
The Organic Cotton Accelerator (OCA) Steering Committee is issuing this Request for Expressions of Interest (REoI) to
identify an organisation with a proven track record in supply chain transformation to host the proposed Organic Cotton
Accelerator.
The REoI covers two phases:
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Phase I – A robust study to verify the viability of organic cotton and design of Phase II (Up 2 months)
Phase II – The implementation of OCA, including establishing the organisational structure and governance,
designing its interventions, and launching initial pilots (1 year+)
WHAT IS OCA?
Aim
OCA is a new multi­stakeholder initiative that aims to build a prosperous and resilient organic cotton sector that
benefits all, from farmer to consumer. It will do this in three ways: 1) by improving the traceability and transparency
across the sector, 2) by accelerating production of organic cotton by smallholder farmers, and 3) by raising the profile of
organic among consumers, brands, and other stakeholders.
Context
In late 2013, a small group of stakeholders including Textile Exchange, C&A, H&M, Eileen Fisher, Kering, CottonConnect
and C&A Foundation formed an OCA steering committee to define the rationale for OCA, engage in dialogue, and agree
on OCA’s focus areas. C&A Foundation provided an initial core grant to Textile Exchange (TE) Europe to lead the
incubation of the OCA concept until March 2015, with smaller contributions by the other steering committee members.
Rationale
We believe that demand for organic cotton will soon outstrip supply. Specifically, global production (estimated at
110,000 metric tons) has declined by almost 50 per cent over the past five years due to many factors, including:
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Lack of transparency across the supply chain
Lack of integrity (e.g., certification does not necessarily mean lack of contamination)
Lack of incentives
Lack of economies of scale
Inability to access the right inputs at the right price (non GMO seeds, finance, etc.)
Weak consumer demand for organic
Current efforts to address these challenges are fragmented. We have established OCA to enable a more collaborative
approach which allows key players (producers, processors, manufacturers, and buyers/brands) to work together to
address these challenges.
Outcomes of the Incubation Year (2014)
The purpose of the past year was to define the strategic focus of OCA. Outcomes included:
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Formation of an Engaged Steering Committee to direct the priorities and activities of OCA.
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Establishment of an Initial “Backbone Organisation” to plan, coordinate and support the incubation activities. TE
Europe played this role through a team of two: an interim director (TE’s farm engagement director) and a
coordinator.
Development of an Initial Business Plan for OCA, led by UK­based Change Agency, and subsequent agreement on
the three focus areas for OCA
Launch of Initial Communications on OCA, including a public launch at the TE annual conference in November
2014, the definition of OCA’s brand identity, the development of a microsite and brochure
Proposed Role of the Host Organisation
With this clarity on OCA’s priorities, the Steering Committee is now looking to contract with an organisation to lead the
implementation of OCA. This is a two­phase process, starting with an initial study to verify the viability of organic
cotton.
Phase I (Two Months): Study on Viability of Organic Cotton in order to:
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Assess the strengths and weaknesses of organic cotton, particularly in relationship to the “substitutes” such as
BCI, CMIA, etc.
Identify the key success factors required for organic cotton to be a viable sector (focusing both on supply and
demand)
Outline scenarios for the future of organic cotton (low, base, high case) and recommendations on what needs
to happen to achieve this
Recommend the role of OCA, given this context, and how OCA will address the issues preventing the growth of
the organic cotton sector
Present the detailed design for the implementation phase (Phase II), including resources, activities, milestones,
budget, outputs and outcomes, including the theories of change for the proposed interventions in
transparency and production
The outcome of this phase is a robust report, which will lead to a go/no go decision by the Steering Committee to
proceed to Phase II. This report will be presented, in person, to the Steering Committee no later than end of May 2015.
Phase II (One Year+) – Implementation of OCA. As the host organisation, the successful bidder will put in place the
dedicated staff needed to:
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Establish the required structure for OCA (governance, fund management, etc.)
Further refine OCA’s strategy (including financial plan) and five­year implementation plan
Lead the three priority areas (see below), with the aim of achieving proof points to establish OCA’s credibility
in 2015
Lead fundraising activities, which may include member recruitment and development of member services
Monitor and evaluate the results of OCA’s activities
The Steering Committee has identified three priority areas for OCA:
Area #1: De­risking for Brands via a Transparency Technology Platform
The Problem. Confidence in organic is low. The crop often becomes contaminated by non­organic, and this
contamination is not always caught by the certifiers. The premiums paid by brands to garment manufacturers are not
trickling down to farmers. And lack of market signals between supply and demand lead to oversupply in some areas,
undersupply in others.
Proposed Approach. We believe that OCA should develop a global technology platform to enhance the transparency
and traceability across the organic cotton chain. It is foreseen that the platform would:
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Provide real­time data on production, traceability, premium payments and integrity
Provide data on a demand basis and could be a valuable revenue generator for OCA
Depend on the collaboration with current “owners” of data, including certifiers, TE, CottonConnect
Create more accountability for better business practices (as those entities failing integrity checks become
public)
Enable crowd sourcing of data
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The successful bidder will further define the feasibility of such a platform through industry dialogue and analysis, investigate a build vs. buy (e.g., leverage existing platforms) decision, and develop a prototype in Year 1. Area #2: De­Risking for Farmers via Innovative Finance Mechanisms
The Problem. In the long­term, organic cotton production is a better economic choice for smallholder farmers (per peer­reviewed research by FIBL / BioRe in 2013) with higher margins and better resilience to adverse weather. But the initial years of conversion are not attractive, as yields drop and premiums are not yet paid. Solutions are needed that can de­risk these early years, providing a financial cushion (via insurance or other schemes) to farmers until the benefits of organic are able to pay off. And, in the longer term, farmers need better access to inputs, capital, training, and timely payments in order to stay in organic. Proposed Approach. Inspired by BCI’s FastTrack Fund, we believe that OCA should put in place an Accelerator Fund than ultimately unlocks finance for farmers and processors, while de­risking the conversion period. The successful bidder will both design the fund (based on a thorough understanding of the problem we are trying to address), identify potential initiatives to support, put in place the right governance for fund management, identify and engage potential donors and investors in the fund, and establish a robust monitoring and evaluation system (including economic, social and environmental indicators). Initiatives to be funded could include: �
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Micro­insurance schemes Guarantee schemes to unlock finance for producers and processors (warehouse receipts, etc.) Access to inputs (seeds, irrigation, etc.) Technical assistance / capacity building While it will take time to design the Accelerator Fund and capitalise it, the successful bidder will also design and implement a “proof of concept” initiative, which will work to increase the credibility of OCA and enable key learnings that will inform the fund’s design. This initiative will focus on a distinct group of existing organic farmers in India where significant “leakage” is already taking place and develop a financing mechanism which: �
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Provides finance to processors on a timely basis via local financial institutions, thus allowing them to purchase organic cotton when available Requires brands to commit to purchasing from farmers and/or processors Guarantees the premium to be paid directly to farmers Supports farmers in better cash management, savings Area #3: Creating a Movement: Raising the Profile of Organic Cotton
The Problem. Consumer demand for organic cotton is low, and with easy substitutes for “more sustainable” cotton, it is tempting for brands to choose the least complicated option. Unlike FairTrade, the benefits of organic cotton are difficult for an average customer to understand. Organic cotton needs a facelift to make it desirable and attractive. Organic cotton needs a champion that attracts brands and consumers. OCA can create that buzz and attract others – brands, consumers, other stakeholders – to join the movement. Proposed Approach. The successful bidder will lead various internal and external communications activities which: �
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Recruit and retain members by communicating the value that the OCA can deliver to their organisations Provide accurate, relevant and fun! information about the OCA to the broader community Advocate strongly for organic cotton through creative communications and strong media relations. Promote the achievements of the OCA’s members in order to support their sustainability strategies and achievements. Attract donors by setting out clear reasons to support the OCA mission The successful bidder will also outline how it will reframe the perceptions of organic that are restricting its growth and boxing it into a “niche” fibre choice. Examples of how other commodities and/or initiatives have achieved this should be provided. 3
Criteria for Selection
The Expressions of Interest will be assessed based on the following criteria: �
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Relevant experience of the bidding organisation (supply chain transformation, experience in organic or other “niche” crops, experience in designing and managing backbone organisations, experience in smallholder agriculture, experience in fund management (or ability to bring such expertise in), experience in marketing and communication) Feasibility of the proposed approach in terms of timing, budget, ambition vs. reality Strength of the proposed team members Value for money The Process
Applicants shall submit an Expression of Interest, no longer than ten pages (not including title page and annexes), which includes the following: � Proposed detailed approach to Phase I (team, activities, detailed line­item budget, outputs and outcomes) � Proposed high­level approach to Phase II (priorities, sequencing/Gantt chart, indicative budget, partners, results) � Profile of the organisation indicating its relevant expertise � Risk matrix outlining the factors that could endanger the project and mitigating actions In annex, the following should be included: � CVs of the proposed team members Expression of Interests should be submitted to Liesl Truscott, European & Farm Engagement Director, on
[email protected] no later than 17:00 (UK Time Zone) on Thursday, March 19, 2015 with the aim to start
Phase I by April 1, 2015. Please include, in the subject line of the email, “Response to OCA REoI” followed by your
organisation’s name.
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Potential FAQs:
Do I need to submit a full proposal for Phase II?
No. The OCA Steering Committee would like to understand your high level approach to Phase II (priorities, sequencing/Gantt chart, indicative budget, partners, results). But the detailed design for Phase II will take place during Phase I. What is the budget for the two phases?
The OCA Steering Committee has not indicated a budget ceiling and expects each applicant to indicate the cost of its proposed approach. However, given the non­profit nature of this initiative, we prioritise applications with a strong value proposition. How long is Phase II?
We are building OCA to be a permanent contributor to the organic cotton industry. At a minimum, we would expect Phase II (particularly in terms of the design and piloting of the three interventions) to be at least one year. But applicants are invited to submit expressions of interest for a much longer Phase II (e.g., three to five years). Where will OCA be based?
OCA is a global initiative that will eventually work across all organic cotton producing countries, serving all global stakeholders. The OCA Steering Committee requests that the applicants indicate their recommendations on this in the Expression of Interest. Is OCA planning to be a membership­based organisation?
The initial business plan recommends that OCA develop a membership service, and that the dues from members would cover the costs of operating OCA. The OCA Steering Committee is looking to the successful bidder to investigate all options around the financial model for OCA and recommend which one is best. How will OCA relate to other sustainable cotton initiatives, such as BCI?
While the focus of OCA is on organic cotton, we anticipate close partnerships with the other sustainable cotton initiatives, particularly in terms of leveraging the technology platforms which already exist. The successful bidder will be expected to further define this collaboration and engage directly with these other stakeholders. To what extent as the industry been involved in developing OCA?
While a small group of brands and stakeholders has been incubating the OCA concept, we have – via TE Europe – begun a dialogue process with other stakeholders. The successful bidder will be expected to continue this process to ensure that all industry voices (from farmer to customer) inform on the design of Phase II and OCA’s structure. Any further questions about this REoI should be emailed to [email protected]. Answers to the questions will be
sent no later than two working days after receipt and shared with all applicants.
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