November 14, 2006 Coffee & Company

Starbucks and Our Relationship with Ethiopian Coffee Farmers

Relationship with Coffee Farmers
We are proud of the longstanding relationships that we have with coffee farmers in more than 27 countries. Starbucks is committed to paying premium prices for all our coffee. This is part of our integrated approach to coffee sourcing which includes C.A.F.E. Practices, (Coffee and Farmer Equity Practices), a set of socially responsible coffee buying guidelines. Specifically in fiscal 2005, Starbucks paid an average price of US $1.28 per pound, which was 23 percent above the average New York “C” price during the same time period, for all of its coffees.
Additionally, between 2002 and 2006 Starbucks increased its Ethiopian coffee purchases by nearly 400 percent.
In addition to paying premium prices for all of our coffees, our investment in social development projects and providing access to affordable loans in coffee growing regions has been recognized for its leadership within the industry. 
Access to Credit
Starbucks, through its partnership with EcoLogic Finance, provides access to affordable loans to coffee producers. In Ethiopia, EcoLogic Finance granted a $400,000 loan to Sidama Coffee Farmers Cooperative Union (SCFCU).
Investment in Social Development in the UK
Since 2002 Starbucks Coffee Company UK has provided support for development projects in coffee growing communities in Ethiopia:
Bensa Ware Kebele – Starbucks UK raised £ 50,000 to fund the construction of a well (Kebele), pumping station, reservoir and water points in the coffee growing community of Bensa Ware in Sidamo. The project continues to provide a safe, readily accessible and reliable source of drinking water to over 8,000 coffee farmers.
Daye High School – Starbucks UK raised £40,000 to fund the construction and equipping of a library plus significant renovation of facilities at Daye High School. Over 400 pupils continue to benefit from the project in Daye which is situated 15km from the community of Bensa Ware.
East Harergue Livelihoods Project – Starbucks UK partnered with Oxfam GB on a significant regional development project in East Harergue, to provide access to education, medicine and efficiency improvements of coffee farming cooperatives. The project was complete in September 2005.
Black Apron Exclusives
The Black Apron Exclusive program awards US $15,000 to coffee farmers for harvesting especially unique coffees, helping fund projects that support their communities, the environment and coffee sustainability. These coffees are limited offerings because they are so rare. Since the Black Apron Exclusives program began, Starbucks has featured 12 coffees, 3 of which have come from Ethiopia:
Ethiopia Harrar - The coffee farming village of Dire Dawa, donated the award money to support their community's medical services (Dil Chora Hospital) in providing medical equipments
Shirkina Sun-dried – The Fero Cooperative will utilize the award money to partially finance construction costs of the cooperative’s new office to host various educational and medical trainings.
Ethiopia Gemadro Estate – The award will be used to expand services and equipments of the existing clinic and school on the Gemadro Plantation. It will benefit an estimate number of 233 permanent workers and their families, 1241 temporary workers and 500 neighboring farmers and their families.
African Wildlife Foundation
In January 2005, together with Starbucks Coffee Company-USA, the AWF began a three-year program focused around Starbucks C.A.F.E Practices in Kenya with the aim of yielding higher quality coffee crops to benefit the farmer, the environment, and ultimately to positively affect the global coffee market.
In February 2006, Starbucks Coffee Company UK Ltd and the African Wildlife Foundation commenced work alongside farmers and the Mt Kenya Water and Wildlife Programme to improve the basic needs of local farming communities.
Starbucks names our coffees to honor the country of origin and to demonstrate how high quality Arabica coffees are grown. By naming coffee growing regions, we provide significant awareness to 40 million customers in more than 12,000 stores worldwide. This helps provide insight into coffee growing regions and celebrates coffee origins with coffee drinkers around the world. We hope to continue using regional names to educate about and promote the Ethiopian regions where these coffees are grown

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