Poor Farmer

What's in a name? Ethiopia's battle against Starbucks Foreign Policy February 28, 2007 Ethiopia, fed up with getting short-changed when selling its popular coffee products to the West, has been in legal conflict with Starbucks since 2005. Ethiopia complains that while a pound of coffee sold in the United States nets Ethiopian farmers about $1, the same pound of coffee sells for $26 at Starbucks under the name "Shirkina Sun-Dried Sidamo." Ethiopia argues that the high price for its coffee is not just the result of roasting, packaging or marketing in the United States, but because there is something consumers intrinsically value in Ethiopian coffee. Ethiopia is frustrated that it hasn't been able to capitalize on the "intellectual property" of its coffee-producing regions, and wants that to change. In March 2005, Ethiopia filed a case with the U.S. Patent and Trademark Office to trademark the names of three of its renowned coffee-producing regions (Yirga...

A few weeks back, Starbucks Senior VP Dub Hay said on this video that Ethiopia's coffee trademark attempts are illegal. Bob Winter of Arnold and Porter LLP responds on YouTube to Starbucks talks about coffee farmers in Africa and says that Hay's claim is totally absurd. You might wonder what Hay would have to say. Well, a comment posted - as Starbucks Coffee Company - on YouToube reads: "Since our 1st video was posted, a lot has happened. When we posted that video we felt the information was correct & since we've learned a lot & realized the information about the legality of the trademark was not accurate. Dub & other Starbucks partners recently visited Africa & met with the Ethiopian Govt. We agreed not to oppose Ethiopia's efforts to obtain trademarks for its specialty coffees, Sidamo, Harar/Harrar & Yirgacheffe, & its efforts to create a network of licensed distributors. "Also, we agreed to work together to help increase Ethiopian ...

NCA Says Opposed The Coffee Trademarks to Protect Ethiopian Farmers In a recent visit to the National Coffee Association (NCA) website, I ran into a welcome message at the front page that reads: "We serve the public, the coffee industry and our association members." The overview page elaborates this statement further: “[Since 1911,]…the NCA has helped American coffee companies through some of the most volatile periods in the nation's history, including two world wars, a depression, a cold war and numerous frosts, strikes and cartels, not to mention a wide range of consumer trends in the U.S. coffee market. “That success is based on the Association's ability to respond to external issues, wherever and whenever they arise. Whatever issue has impacted the coffee trade, the Association has represented the U.S. coffee industry before the legislative and executive branches of government, including the U.S. Department of Agriculture, U.S. Trade Representative's Office,...

Starbucks vs. Ethiopia The country that gave the world the coffee bean and the company that invented the $4 latte are fighting over a trademark, says Fortune's Stephan Faris. By Stephan Faris , Fortune February 26 2007: 5:56 AM EST (Fortune Magazine) -- To produce a pound of organic sun-dried coffee, farmers in the southern Ethiopian village of Fero spread six pounds of ripe, red coffee cherries onto pallets near their fields. They sun the fruit for 15 days, stirring every few minutes to ensure uniform dryness, then shuck the shells. Last season, that pound of coffee fetched farmers an average price of $1.45. Figuring in the cost of generator fuel, bank interest, labor and transport across Ethiopia's dusty roads, it netted them less than $1. In the U.S., however, that same pound of coffee commands a much higher price: $26 for a bag of Starbucks' roasted Shirkina Sun-Dried Sidamo. The price differential, says Getachew Mengistie, head of Ethiopia's Intellectual Property O...

Starbucks Union sees the angle missed by Company Chairman Howard Schultz in his memo to a handful of Starbucks senior officials. The Union says, Schultz is Worried About Starbucks Brand but Forgets to Mention Key Factor: Barista Discontent . I should add that Schultz takes quality coffee for granted. The leaked document is once again an evidence that the Chairman cares less about the people growing the bean. For Schultz, coffee is naturally brown. Starbucks is taking advantage of the farmers and the company's strategic planners have just gotten the green light to feel good about their "Corporate Social Responsibility" as they prepare the forecast for 2008 . Schultz is Worried About Starbucks Brand but Forgets to Mention Key Factor: Barista Discontent Starbucks Union February 24, 2007 Starbucks Gossip published an internal memo from Chairman Howard Schultz reflecting his concern about damage to the Starbucks brand. Schultz forgot to mention how he's imperiled the...

Reverend Billy , the Stop Shopping Gospel Choir, and Not Buying It Band continue to pressure Starbucks to “let go Sidamo.” The following message is a call for action for the 4th week in a row. ---------- Sidamo Action & Fabulous Worship The corporate logo makes you lose your mind and thirst for somebody else's! The pixilated supermodels leave you dopey, forgetful, drifty. We are consumers now, more than we ever know. It's how the Shopocalypse happens: We Americans are trained not to ask where the products on the shelf come from…When Starbucks puts $26/lb elite coffee in front of us, from "Sidamo – The Birthplace of Coffee," we have starving Sidamo in our fingertips, we feel something might be wrong, but I've got my buzz, let me swipe my card and go. After trips to Africa, to Virginia, and to The Tombs, your humble pastor feels ready to preach. On March 4th the Stop Shopping Gospel Choir and Not Buying Band present a new gospel song, Sidamo, sung by the sopr...

Starbucks takes step towards recognizing Ethiopian rights to coffee names. Campaigners urge company to follow through. 21 February 2007 BOSTON — International agency Oxfam responded to a joint statement from coffee company Starbucks and the Government of Ethiopia in which Starbucks pledged not to oppose Ethiopian efforts to trademark its coffee names, Yirgacheffe, Sidamo and Harar. While it is a good first step, Oxfam said Starbucks needed to go further and guarantee concrete support for the Ethiopian project, designed to benefit poor producers. "It's good to see Starbucks finally coming to the table, which they initially refused to do," said Seth Petchers, coffee lead for Oxfam International's Make Trade Fair campaign. "Starbucks now says it won't block the initiative, but what it hasn't said is how it will actively support Ethiopia's stated efforts to obtain trademarks for its coffees which will bring added benefits to poor farmers." After init...

Last week’s 4th East Africa Fine Coffee Association (EAFCA) conference was the latest venue for the ongoing dispute between Ethiopia and Starbucks. Though not on the agenda, this was probably the most widely discussed issue by conference attendees in Addis Ababa. Starbucks continued to reject Ethiopia’s request to acknowledge its ownership of its coffee marks. At the same time, Green Mountain Coffee Roasters and several others announced that they accept Ethiopia’s position and are in the process of formalizing this acceptance. Starbucks senior officials led by two VPs, Dub Hay and Sandra Taylor, accompanied by Rosa Whitaker, founder of Rosa Whitaker Associates, a Washington-based lobbying group, maintained the company’s opposition to Ethiopia’s trademark efforts, meeting with senior Government officials and issuing press releases. Whitaker is a former senior US Government trade official under both Presidents Clinton and Bush who now uses her expertise on behalf of Starbucks and others....

Starbucks’ recent offerings to the East African coffee growers - and Ethiopians in particular - are the company’s responses to its fair trade critics, not to the trademark dispute. The company has not softened its stance against Ethiopia’s trademark initiative. The analysis by The Montley Fool explains the current development. Starbucks' Coffee Conundrum Alyce Lomax February 20, 2007 Starbucks has found itself in the midst of a quandary about its dealings with Ethiopia. After a high-profile trademark dispute, the coffee giant appears to be making concessions regarding a complex issue, one it had little choice but to address. Ethiopia, which produces high-quality coffee beans, has claimed that Starbucks has been seeking to block its attempts to trademark its coffee; it believes trademarks could get it better prices. Some claim that approximately $90 million in potential income to poor farmers has been lost because of the lack of trademarks, and that the prices Ethiopian farmers g...

Read the real story behind the Starbucks-Ethiopia joint press statement here Hot Coffee, Mild Voices Addis Fortune February 18, 2007 This week, Addis Abeba hosted the fourth annual African Fine Coffee Conference and Exhibition. The conference attracted exporters, roasters, buyers, and retailers specializing in specialty coffees from all over the world, providing an excellent mix of distinguished international and regional speakers presenting a wide range of topics, as well as providing opportunities for networking, connecting various stakeholders from around the world. The theme of the conference, appropriately named A Pilgrimage to the Birth Place of Coffee, included an African Coffee Safari to the coffee growing regions of Ethiopia. It is ironic though that this pilgrimage to the birthplace of coffee came at a time when Ethiopian coffee has taken center stage as a hot issue. The trademark standoff between Ethiopia and Starbucks has recently stirred up a bitter debate among stakeho...

Starbucks has not changed its position on Ethiopia’s trademark initiative. The company refused to sign the licensing agreement with Ethiopia. The country still wants to secure ownership of the coffee marks. The following joint statement is the outcome of Starbucks’ PR ploy. It is bizarre that the Ethiopian government signs on it. Coming up : a complete assessment of Starbucks' trip to Addis. --------- Ethiopia's Government and Starbucks Joint Statement ADDIS ABABA and SEATTLE, 18 Feb. 2007, The Government of the Federal Democratic Republic of Ethiopia and The Starbucks Coffee Company recognize their shared interests and responsibility in the sustainability and growth of the Ethiopian coffee sector. Strong partnerships between the Government, coffee companies, donors and other stakeholders are critical to the growth of the sector. The Government of Ethiopia and Starbucks have agreed to work together in their shared vision to increase Ethiopian farmer incomes and enhance the ...

Reverend Billy , the Stop Shopping Gospel Choir, and members of their Congregation continued informing the world that Starbucks is blocking Ethiopia from trademarking its own coffee marks. The Reverend's powerful campaign forced Starbucks to issue a memo to its staff, headed: "What do I do if Reverend Billy comes into my store?” Rev. Billy has led two actions so far and both ended with his arrest. His call for the third week of action comes despite the imminent threat of arrest. Sidamo Prayer Campaign Week Three: Keep The Pressure On Starbucks They've got to LET GO SIDAMO ! Return with us to Astor Place this Sunday at 4pm and tell Starbucks to recognize Ethiopia's ownership of specialty coffee names like Sidamo , Harar and Yirgacheffe . We must be resolute, children, that ancient coffee names belong to the region that cultivated them -- not a transnational, corporate bully. Agreements have already been reached in Canada and Europe, recognizing Ethiopia as the ...

Marketplace American Public Media Thursday, February 15, 2007 - Updated LISTEN TO STORY Starbucks has been accused of blocking Ethiopian farmers' attempts to trademark their coffee beans. A group representing Africa's top coffee growers is now backing the farmers' efforts. Stephen Beard reports. TEXT OF STORY KAI RYSSDAL: If you go to the Starbucks website, it tells you coffee as a drink originated in Ethiopia more than a thousand years ago. And right about here is where irony meets the news of the day. Ethiopia's been trying to trademark some of its beans. Starbucks has been accused of blocking that process. And today, a group of major African coffee-growing countries took sides. From London, Marketplace's Stephen Beard has more. STEPHEN BEARD: A group representing Africa's top coffee growers today attacked Starbucks. It urged the company to drop its opposition to Ethiopia's campaign to trademark some of its coffees in the United States. The British charit...

Starbucks lobbyist Rosa Whitaker appeared on the Ethiopian Television (ETV) today to defend Starbucks’ actions against Ethiopia. Whitaker, former Assistant US Trade Representative for Africa under both Presidents Clinton and Bush Administrations, said that Ethiopia and Starbucks share the same goal - they both want to increase the farmer's income. “I am confident that the issue is going to be resolved soon," she added. Interestingly, Whitaker stated that the Trade Mark vs. GI issue is just a distraction that takes the focus away from more important things. Whitaker said that she supports GI (certification); that she's seen it work- it has a lot of power. Though unrelated to the trademark dispute between Ethiopia and Starbucks, she did not waste time to assure the interviewer that Starbucks is a good company to work for - a CSR company. Starbucks hired the Washington based lobbying firm, The Whitaker Group to advance the company’s interests internationally, most particul...

Starbucks meets African farmers halfway Marketplace American Public Media Thursday, February 15, 2007 LISTEN TO STORY Under public pressure from social activists, Starbucks has announced that it will double the amount of coffee it purchases from East Africa by 2009 — but it won't necessarily pay more for it. TEXT OF INTERVIEW SCOTT JAGOW: Starbucks is reaching out to coffee farmers in Ethiopia. Our correspondent Stephen Beard is working on this story. Stephen, what did Starbucks announce today? STEPHEN BEARD: Starbucks has unveiled a whole package of measures which they say is going to help East African farmers and, in particular, Ethiopian farmers. First of all they're going to double the amount of coffee they buy from the region. They're going to increase to $35 million the amount of money they're going to spend buying East African coffee over the next two years. In addition, they're going to provide affordable credit, they're setting up a farmers support cent...

By Getachew Dibaba The Ethiopian Herald ADDIS ABABA -Oxfam America expressed hope that Starbucks, an international coffee retailer and roaster company, would negotiate a solution with the Ethiopian government on the country’s claim to its coffee trademarks as the company takes part in the 4th East African Fine Coffee Conference and Exhibition opening here today. In an exclusive interview with The Ethiopian Herald earlier this week, Oxfam America Horn of Africa Regional Director Abera Tola and Coffee Programme Manager Seth Petchers said that Starbucks had to use the opportunity to change its position and recognize the interest of Ethiopia and its coffee farmers. “We hope Starbucks to take the opportunity of being in Addis to sit down with the government and come to an agreement that works for both parties,” Petchers said. Alain Poncelet, Vice President and Managing Director of Starbucks Coffee Trading Company, is expected to deliver a keynote address at the conference. It is the second ...

By David Mageria Reuters Thu Feb 15, 2007 8:56am ET ADDIS ABABA, Feb 15 (Reuters) - Africa's top coffee growers backed Ethiopia on Thursday in its trademark row with Starbucks (SBUX.O: Quote , Profile , Research ), saying securing the protection rights for various crops and plants could lift millions from poverty. Ethiopia and the British charity Oxfam have accused the U.S.-based coffee shop giant of blocking Ethiopia's attempts to trademark its beans, denying farmers there potential income of more than $90 million. "We are dealing with the issue of improving the lives of millions of people," Sindiso Ngwenya, deputy secretary-general of the 20-member Common Market for Eastern and Southern Africa, told Reuters at a major coffee meeting in Addis Ababa. "Make no mistake, (we) support Ethiopia because we are not only dealing with coffee but also with a wide range of products." The dispute escalated on Thursday when Ethiopia said it could take action against the...

A Pilgrimage to the Birth Place of Coffee The 4th EAFCA conference opened today in the Ethiopian Capital, Addis Ababa and will continue through February 17, 2007. The conference is being held at the United Nations Conference Centre, Addis Ababa (UNCC-AA) and its theme is appropriately named, “A pilgrimage to the birthplace of coffee!” The international five-star conference and exhibition has created the best opportunity for networking for the record number of more than 60 international coffee companies gathered in the city. Dub Hay, Starbucks Senior VP, Coffee & Global Procurement, is the keynote speaker. Below is the complete list of registered participants. ----- Also read the following recent posts: ~ Chin up, Schultz tells workers, don't let critics get you down (Feb 14, 2007) ~ Starbucks says it wants to help Ethiopian farmers (Feb 14, 2007) ~ EIPO calls the first trademark stakeholders meeting “historic” (Feb 14, 2007) ~ Starbucks to buy more East African coffee (Feb ...