University of Vaasa - Vaasan yliopisto

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We have also highlighted some important social effects from the adoption of organic
methods, such as the improvement in health and well-being of organic farmers.
Though the economic benefits may seem relatively small at the farming stage
compared to some of the other stages, these are meaningful amounts to a small
farmer in a developing country. In addition to the mark-up on the crop itself, famers
can achieve other valuable benefits. Organic methods lower the costs of pest
management, increase yields, reduce crop failures, and as a result help to reduce farm
debts (Pawar 2007; Eyhorn et al 2007; Glin et al 2006; OTA 2007). Farmers receive
free training in organic production from the sustainable farming agencies which has a
side benefit of increasing the farmers’ general know-how in efficient farming
techniques. They also have better health which means that medical costs are lowered
and time off sick is reduced. Recent development in carbon-offsetting schemes also
has the potential to increase organic farmers’ earnings through carbon trading,
estimated to be able to contribute 5-10% of income (Soth 2007).
However, it is now becoming clear that any distinctions between pure economic
effects and social effects are becoming blurred, as a commitment to an ethical stance
is an important source of distinctiveness and branding in the fashion industry in its
own right. As one retail industry commentator said, ‘In today's competitive business
landscape, commitment to environmentally ethical ways of doing business are now
irrevocably linked to product placement, branding policies, target markets and the
attraction, recruitment, and retention of the very best staff’ (Blackwell 2007).
Organic cotton appears likely to be appearing on retailers shelves in increasing
volumes for some years to come.