Growing More Than Cotton
The Fairtrade Premium Impact Story of Agricultural Commodity and Service Cooperative "Bio-Farmer"
Founded in the heart of Jalal-Abad, Kyrgyzstan, the Agricultural Commodity and Service Cooperative "Bio-Farmer" has been at the forefront of organic cotton production and sustainable farming since its inception in 2007. Originally established with the support of Helvetas’ BioCotton Project to promote organic cotton trade and production, the cooperative officially re-registered as ACSC "Bio-Farmer" in 2009, growing into a vibrant community of 368 dedicated farmer members managing 649 hectares of Fairtrade and EU-certified organic land.
Guided by the vision that “Organic farming enriches your life,” Bio-Farmer empowers its members by meeting their social, economic, educational, and professional needs while producing environmentally friendly cotton. Its mission is clear: to promote organic farming and provide end-to-end services from farmer to market, ensuring quality, sustainability, and fair trade at every step.
Bio-Farmer offers a comprehensive suite of services to its members, including high-quality non-GMO seeds and production inputs, technical training and consultation aligned with Fairtrade and organic standards, internal control systems, and full support in harvesting, processing, packaging, storage, and export. The cooperative also excels in marketing, Fairtrade fund management, seed fund management, lobbying for farmers’ interests, and exploring new, profitable crop opportunities.
With a total cotton fibre volume potential of 200 tons, Bio-Farmer proudly serves multiple European markets, including Germany, Austria, Portugal, France, Switzerland, and Turkey, bridging the gap between Kyrgyzstan’s sustainable cotton producers and global buyers committed to ethical trade.
Fairtrade Intervention: Empowering Farmers, Strengthening Communities
"Bio-Farmer" became the first cooperative in Central Asia to receive Fairtrade certification in 2008, marking a milestone in the region’s journey toward ethical and sustainable cotton production. Since then, the cooperative has fully embraced Fairtrade standards, producing high-quality Fairtrade-certified cotton and ensuring that its members benefit from ethical trade practices.
The partnership with Fairtrade has transformed the cooperative in multiple ways. Through trainings and seminars, members gained in-depth knowledge of Fairtrade standards and premiums, which enabled the establishment of the cooperative’s Fairtrade premium fund—a transparent mechanism used for community decisions and investments in members’ welfare. Pre-financing support from buyers, covering 60% of costs, allowed timely purchases of raw cotton from farmers, ensuring fair and predictable incomes. Over time, by selling products at Fairtrade prices and internalizing services previously outsourced, the cooperative achieved full financial independence by 2014 and has since been entirely self-sustaining. Additionally, other projects supported through the Fairtrade Network of Asia and Pacific Producers have helped implement development initiatives, strengthening both the cooperative and its members.
Before Fairtrade’s support, the cooperative relied heavily on donor funding for essential operations such as cotton processing, certification, training, logistics, and partial salaries. Fairtrade’s involvement shifted the cooperative from dependency to self-reliance, empowering farmers, securing fair incomes, and building a sustainable, community-driven business model.
Fairtrade Premium: Driving Transformation and Empowering Communities
Since 2018, the cooperative has received a total Fairtrade Premium of $320,147, reflecting its sustained commitment to ethical and sustainable cotton production.
Social Sustainability Projects:
The Fairtrade Premium has enabled the cooperative to address urgent social needs and enhance community well-being.
Sewing Workshop (2020): A 38.87 m² sewing workshop was built and equipped with 11 sewing machines, 2 cutting tables, electric scissors, iron, and a hanger, providing 15 comfortable workplaces across three rooms (sewing, cutting & ironing, and storage). Electricity and heating ensure all-season usability, giving local workers safe, productive conditions.
Office Construction (2022–2023): Using Fairtrade funds and the cooperative’s own contribution, a 2-story, 137.3 m² office was built. This office employs 6 staff and 2 technical personnel, hosts training for 26 farmer group leaders and 9 regional inspectors, and accommodates 100 farmer representatives for annual general meetings—all previously held in rented spaces. Equipped with electricity, Internet, heating, and restrooms, it offers comfortable conditions for fairtrade and organic certification auditors and staff alike.
Health Support: Additionally, the cooperative has supported individual health needs of farmer members.
A 38.87 m² sewing workshop was built and equipped with 11 sewing machines, 2 cutting tables, electric scissors, iron, and a hanger,
Using Fairtrade funds and the cooperative’s own contribution, a 2-story, 137.3 m² office was built.
Economic Sustainability Projects:
The Fairtrade Premium has significantly strengthened farmers’ economic resilience by ensuring fair prices during the transition to organic and Fairtrade production. Between 2020 and 2024, a total of 1,907 farmers benefited from Premium-funded price support, receiving a combined investment of 15,839,591 soms. This financial support enabled farmers to improve family incomes, social status, and long-term stability, helping them compete with the local market while securing a decent price for their cotton.
Environmental Sustainability Projects:
The cooperative invested in environmentally friendly practices using the Premium. In 2022, 19 boilers for cooking bio-pesticides were distributed to farmer groups allowing farmers to prepare natural pest-control solutions, reducing reliance on chemical pesticides. Before joining the cooperative, cotton was grown as a monoculture with chemical inputs. After training, farmers adopted crop rotation, biological fertilizers, and organic techniques, initially yielding slightly less but gradually improving productivity while safeguarding soil health.
The Fairtrade Premium has played a transformative role in improving the living conditions of ACSC “Bio-Farmer” members. By ensuring that farmers receive a Fairtrade price for raw cotton—higher than local market rates—the Premium has directly increased their income, giving them financial stability and a better standard of living compared to other local farmers.
Beyond income, the Premium has expanded access to essential services that support productivity and well-being:
- High-Quality, GMO-Free Seeds: Farmers receive cotton seeds at cost price until the end of the season, paying only after harvest. This interest-free arrangement allows them to access quality seeds at a lower cost than other farmers.
- Harvest Transportation Support: Premium funds cover the cost of transporting cotton from farmers’ fields to the cotton mill, reducing logistical burdens and expenses.
- Seasonal Advances Without Interest: Farmers can access advance payments for seasonal work without paying interest, avoiding high bank loan rates of 24–36% per year and increasing their overall income
Farmer Kadyrov Shaiyrbu, from the village of Arkalyk, Bazar in the Korgon district, has been a member of the ACSC “Bio-Farmer” cooperative since 2007 and has practiced Fairtrade and organic cotton production on his 1.87 hectares of irrigated land since then.
Kadyrov Shaiyrbu’s Journey to Organic and Fairtrade Cotton
“Before joining the Bio-Farmer cooperative, I grew cotton as a monoculture, relying heavily on mineral fertilizers and pesticides, and my yields averaged only 33–36 c/ha. When I joined Bio-Farmer, I received training in Fairtrade and organic standards, learning how to prepare and use biological fertilizers and practice crop rotation. At first, I was hesitant—I feared that giving up chemical inputs and changing my farming methods would reduce my harvest. But I decided to take the risk, thinking about sustainable farming and healthy food for the future.
In the first few years, my yields were slightly lower than with traditional methods, but over time, my productivity steadily improved. Today, I grow cotton using only high-quality seeds supplied by Bio-Farmer each year, and my yields have increased significantly. For example, between 2013 and 2015, my cotton yield rose from 38.52 c/ha (3,390 kg) to 40.78 c/ha (3,670 kg). Fairtrade and organic practices have not only improved my productivity but also helped me farm sustainably and take better care of the environment. "
Future Plans and Aspirations
The cooperative envisions using the Fairtrade Premium to further empower farmers and workers, but the scale of future initiatives is closely tied to sales performance, which has unfortunately declined in recent years, directly affecting the Premium received. Despite these challenges, the cooperative has several strong ideas and plans to support its members, including training, infrastructure, and sustainable farming initiatives, which will be implemented once sales improve.