Starbucks to buy more East African coffee

Last year, Starbucks announced that they were going to increase the company's coffee purchases from Africa by 400 per cent. This figure has been confusing as the company did not reveal the basis for comparison - the quantity Starbucks currently purchases from Africa.

According to the following news report, Starbucks is promising to purchase 20 per cent of its coffee from East Africa - a sub region in the continent. This is quite an increase compared to the previously promised 5 per cent purchase. I think this is good news. At the same time, I feel that a few questions are still open to speculation:

What per cent of Starbucks' purchases comes from East Africa now? Is Starbucks really purchasing 10 per cent of its coffee from this sub region only (as stated in the news)? There are over 10 coffee growing countries in East Africa; which countries are going to supply the increased demand? When is this increased purchasing plan going in to effect? How about the price - is Starbucks going to increase the price per pound of coffee it purchases? We won't know until independent researchers come up with the story.


Starbucks to buy more EA coffee

Daily Nation
Story by RICHARD MULIISA
Publication Date: 2/14/2007

Starbucks will double the amount of coffee it buys from eastern Africa to at least 20 per cent.

“We have witnessed a rise in the quality of coffee produced in the region”? this why have decided to double the quantity purchased,” said Mr Dub Hay, Starbucks senior vice-president for coffee and global procurement at a Press conference at Nairobi’s Inter-Continental Hotel.

The official was, however, not specific on how much of this would be Kenya’s share.

He said the region currently supplied less than 10 per cent of the total coffee purchased by the company in the world.

“We have seen an improvement in the quality of coffee produced and we are very much committed to opening up markets for coffee from the region,” said Mr Hay who led a team of senior Starbucks officials, to a meeting with Agriculture minister Kipruto Kirwa.

Starbucks also singled out its support establishment of farmer support centres to improve and maintain the quality of coffee produced in the country.

Mr Hay said small loans were also to be provided to farmers, adding that up to $9.5 million (Sh665 million) would be spent on loans.

“Africa is a very important market for us, and we see Kenya as a natural partner in our growth strategy for Africa,” Hay said.

He added that Starbucks was interested in projects that had a direct impact on the coffee farming communities.

The firm, which buys, roasts, and sells coffee, has up to 13,000 coffee houses operating in 39 countries around the world.

“After considering the demand, we would consider operating in Africa,” Anne Saunders, Starbucks senior vice-president, Global Brand Strategy told the Press.

The Starbucks top officials have been in the country for a three-day visit since last Sunday.

While In East Africa, the group will also attend the East African Coffee Association meeting in Addis Ababa, Ethiopia tomorrow.