We hypothesize that Fashion brands’ demand for organic agroforestry cotton (OAC) may foster more sustainable supply chains in the cotton industry. However, to realize the potential of the OAC market, a better understanding of the market demand for OAC, as well as the quality and production standards under which the brands operate, the institutional frameworks, and the market mechanisms that underpin its commercialization, is needed. We evaluated the existing organic markets in Brazil using an interview-based methodology with key stakeholders throughout the organic cotton supply chain in 2022. Our study revealed that some brands are willing to pay prices ranging from USD$ 2.57 to USD$ 4.61 per kg of cotton lint depending on the brand. These brands require suppliers to meet quality specifications for the cotton fiber; for example, they require average to long fibers and specify harvesting practices that influence fiber quality. There are also social and environmental criteria that prioritize vulnerable communities of family farmers and women groups planting cotton based on established sustainable practices. The institutional framework includes different stakeholders throughout the organic cotton supply chain, which is fundamentally driven by private demand for cotton, counts on the support of agents connecting brands to farmers, and is indirectly supported by public policies. Existing markets for organic cotton are established via contracts that provide farmers with guarantees to invest in planting cotton and have different certification systems used by the brands that monitor and verify adherence to the standards. Market demand for OAC may, therefore, potentially lead to new markets that promote sustainable supply chains and farming practices. However, existing markets for organic cotton reveal complex requirements that must be addressed, such as the need for supporting agents connecting brands to farmers, and market mechanisms, such as complex contracts and certification.
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