Thursday, August 7, 2008

Why Not Organic Cotton

I've been thinking Organic Lately.

An estimated 1/10 of the world's annual fertilizer supply is used for cotton production.

Quite an impressive amount of fertilizer. Cotton is a 300 billion dollar industry.

I wonder if the price of conventional cotton keeps rising (in part due to fertilizer costs) will organic cotton become main stream?

Everyone including Wal-Mart (who is the biggest buyer of Organic Cotton) has fringe lines devoted to organic cotton, but nothing that would be considered the meat of the assortment is made from organic cotton. Something like 2% of total cotton production is organic.

Imagine if Gap or American Eagle sourced part of their assortment from organic cotton instead of conventional cotton I think it would be a major marketing coup.

Take Gap's basic denim, Tee's or Khaki's and fabricate it from Organic Cotton. I think their customer would eat it up.

On the flip side, if there was a major shift to organic cotton how much oil and natural gas would be freed up because of the decreased demand for fertilizer?

Just some food for thought.