Avalo, the US Cotton Trust Protocol and TextileGenesis have released 11 recommendations calling for longer purchasing commitments, stronger fibre traceability and greater investment in climate-resilient cotton farming.
Agricultural biotechnology company Avalo, in collaboration with the US Cotton Trust Protocol and TextileGenesis, has published a new cotton-sourcing framework urging fashion brands and textile manufacturers to share climate-related risks with cotton growers rather than transferring them upstream.
Released on October 28, 2026, The New Rules of Cotton outlines 11 recommendations for building more resilient textile supply chains amid extreme weather, rising agricultural costs and uncertainty over future fibre availability.
Cotton Farmers Face Growing Financial Pressure
The report emerged from a New York Climate Week roundtable involving 35 industry executives representing fashion, outdoor apparel, home textiles, luxury brands and supply-chain businesses.
The discussions highlighted increasing production costs, limited price incentives for sustainable farming and declining grower participation.
According to the report, the number of US cotton farmers fell from approximately 16,000 in 2021 to 14,000 in 2024, a reduction of 12.5%.
Longer Contracts and Shared Investment
The playbook recommends incorporating climate and supply risks into cotton procurement models rather than relying primarily on short-term commodity prices.
It advocates pre-season purchasing commitments, multiseason supply agreements and financial incentives that reward farmers for adopting climate-resilient practices.
The recommendations also encourage regenerative agriculture through initiatives including USRegen and Regenerative Organic Certified.
Traceability Becomes Essential Infrastructure
A central recommendation is linking cotton traceability records to every purchase order.
The report identifies difficulties in tracing cotton beyond spinning mills, limiting visibility into fibre origins and potential supply disruptions.
Improved traceability would allow sourcing teams to verify material origins, monitor supply risks and substantiate sustainability claims.
For textile manufacturers in Pakistan, India and Bangladesh, these recommendations highlight the growing importance of documented fibre sourcing, stronger supplier relationships and reliable production data.
However, the playbook is a set of industry recommendations rather than evidence of quantified supply-chain improvements.
The next challenge is translating these proposals into purchasing contracts, farmer incentives and traceability systems that deliver measurable resilience without undermining commercial competitiveness.
