Starbucks in Talks to Settle Ethiopian Coffee Dispute

SEATTLE (Reuters) - Starbucks said on Wednesday it remained in talks with the Ethiopian government to settle a dispute over the trademarking of the nation's coffee beans.

"We had two meetings with the Ethiopian government and we are now in fruitful discussions with them," said Starbucks Chief Executive Jim Donald. "This is a complex issue."

Starbucks advocates a regional certification program to assure the quality and origin of the coffee beans. It has also called for a transparent system that shows the money is going back to impoverished farmers.

Though Starbucks said last month that it would not oppose Ethiopia's efforts to trademark its Sidamo and Harar coffees, for instance, coffee farmers and exporters last week accused the company of using delaying tactics.

In theory, trademark agreements would bolster incomes for Ethiopia's farmers by allowing the country to negotiate purchasing conditions for coffee roasters or retailers who want to use the names.

Protesters carried red picket signs outside the meeting to protest Starbucks' position in the dispute, which has dented its reputation as a socially responsible company that pays above-market prices for its coffees.

"What we're trying to do is build a long-term, sustainable, enduring relationship with the Ethiopian government with regards to this issue that is specifically pro-farmer," said Starbucks Chairman Howard Schultz at the meeting.

(c) Reuters 2007