Oxfam America has joined a broad coalition of student groups, nongovernmental organizations, and Ethiopian community members, all calling on Starbucks to help Ethiopian farmers make more off their crops.
More than a year ago, Ethiopia approached Starbucks and asked the company to lead the coffee industry by example and sign an agreement recognizing Ethiopia’s legal ownership of its fine coffee names. If companies like Starbucks signed such agreements, Ethiopia would occupy a stronger negotiating position with foreign buyers, capture a larger share of the market associated with its coffee names, and better protect its brands.
Despite its much-publicized commitments to farming communities, however, Starbucks has yet to take Ethiopia seriously. That’s why Oxfam and the other coalition members are calling on Starbucks to recognize the right of Ethiopians to make better profits off their coffee names.
What’s in a name?
Well, a lot actually. Take “Volvo.� Volvos aren’t any old cars. The name “Volvo� connotes a high level of quality. A family car. A company that does not compromise on safety. According to their website, every Volvo “is the sum total of more than 70 years of focusing on safety. Which means you’re not just driving a car. You’re driving a promise.� And the Volvo name�its brand�commands a higher price and the allegiance of consumers.
It’s the same for coffee names like Ethiopia’s Sidamo, Harar, and Yirgacheffe. Coffees marketed under these names promise quality. Companies like Starbucks can charge consumers more for these coffees because they’re considered among the finest in the world.
The problem is that the poor farmers who’ve grown this gourmet coffee for generations aren’t seeing much of the profits. Ethiopian coffee farmers often collect about 10 percent of the profits from these coffees. The rest goes to the coffee industry players that can control the retail price, the international importers, distributors� and roasters like Starbucks.
If successful, Ethiopia’s names project could bring an estimated additional $88 million a year in revenues. In a country where about 15 million people depend on coffee, that amounts to significantly more money for food, health care, and education.
For more information: Oxfam Starbucks Campaign; Starbucks Union.
Posted by beanybabe at 3:48 AM PST
