The Pohan Farmer’s Association (PFA) is the first registered farmers’ association in China with a membership of around 3,800 farmers covering 35 villages in the region. PFA helps local farmers develop a plan to support their efforts for organic-conversion of their cotton, while promoting improvement to the livelihood, health and well-being of the farmers and the rural community with social, educational and medical facilities. The Association’s innovative approaches to organic conversion include the use of Chinese-medicine-based fertilizers combined with high-tech pest-control lamps. PFA is expanding their organic farming activities. Their expected production of organically grown cotton is expected to reach 300 tonnes in 2010 and 1000 tonnes in 2011.

The PFA seeks an investment of RMB 2.4 million to establish a joint venture ginning factory and trading company to process, market and distribute their cotton to domestic and international markets. The payback period of this project is expected to be 5 years with a projected IRR of 30%.