Starbucks blocking farmers’ bid for a better deal

Nicole Martin and Mike Pflanz

Starbucks, the coffee giant, was yesterday accused of using its might to deprive Ethiopian subsistence farmers of tens of millions of pounds a year.

Oxfam claims that the chain asked the US National Coffee Association to block an attempt by farmers to trademark the country’s most famous coffee names, denying them earnings of up to £47 million a year. They applied to protect the names of Sidamo, Harar and Yirgacheffe coffees at the US Patent and Trademark Office. Had the application been successful, the farmers would have been able to demand a higher price for the finest quality beans, which Starbucks sells at a huge premium in its 12,000 stores. “Coffee shops can sell Sidamo and Harar coffees for up to £14 a pound because of the beans’ specialty status,” said Tadesse Meskela, the head of the Oromia Coffee Farmers Cooperative Union in Ethiopia.

“But Ethiopian coffee farmers only earn between 30p and 59p for their crop, barely enough to cover the cost of production. I think most people would see that as an injustice.” Starbucks sought to influence the US patent office decision, Oxfam claimed, by prompting the National Coffee Association, of which it is a leading member, to oppose the approval of the trademarks. The application has since been turned down, although Ethiopia is pushing buyers to sign a voluntary agreement recognising that the bean varieties are indigenous to the country.

Phil Bloomer, from Oxfam, appealed to Starbucks – which made £2 billion profits last year – to “act responsibly”. “Starbucks has made some progress towards helping poor farmers in recent years. By acting responsibly, they could set an example for others by supporting Ethiopia’s plan to help the 15 million struggling Ethiopian farmers who depend on coffee for their survival.” he said.

Dub Hay, the chain’s senior vice president of coffee procurement, denied it had approached the association to oppose the Ethiopian move: “We did not get the NCA involved – it was the other way around, they contacted us.” Robert Nelson, the head of the NCA, said it had opposed the move for economic reasons.