Cotton co-ops

There's a factory in Calcutta that can pick out Winton, New Zealand (population 2100) on a map. Every few months, it ships organic cotton T-shirts north to England where they're sold in Marks & Spencer department stores. But a small order of T-shirts is boxed and dispatched south to Winton.

Winton-based Micah Clothing opened in December 2007. Owner Darren Frazer studies international development at Massey University and he decided to start a Fairtrade certified clothing company after learning about lousy working conditions in the international rag-trade.

Darren spent 6 months researching cotton suppliers for his clothes. Eventually, the Fair Trade Association put him in touch with a cotton co-operative in India.

Nature Spot also sources cotton from a Fairtrade certified farmers co-operative in India. Nature Spot's in its second year of production. The company sells only certified organic cotton garments. Like Darren, owner Isha Fichadia pays a premium to a co-operative to guarantee both farmers and workers receive fair wages.

In return, the co-operatives adhere to environmental standards that restrict the use of agrochemicals. Fairtrade inspectors also monitor labour standards where the garments are made. Isha says paying a premium for Fairtrade organic cotton, as well as using recycled paper for stationery and packaging, means her profit margins are small. That doesn't deter her: every year she flies to Bangalore to see how her co-operative has progressed.

Darren struggles with supply and demand. There's a limited supply of Fairtrade organic cotton - and so shipments must be ordered well in advance. That means it isn't always possible to cater for large or unexpected runs. "I think that I can make money - but that isn't the reason I started this company," he says.

How much for your soul?

You can pay more for organic or ethical clothes. When Consumer went shopping for a plain white T-shirt, the cheapest price we found was $13 for a standard cotton tee from Hallensteins. The cheapest organic option was $22 from Micah Clothing.

Conscientious shoppers say that there are other ways to view the "cost" of the ticket price. For example, you may want to reduce the environmental cost of producing standard raw cotton (the pesticides used). Or you might see the extra you pay for a Fairtrade certified T-shirt as money that's finding its way back to the cotton grower.

Untouched World's Peri Drysdale also recommends that you look at the cost of a garment against its usable life. Is a $40 shirt that falls apart after a few months really value for money? How many 'wears' did you get from it?