Poor Farmer

ABC News Online May 31, 2007 A coffee grower from Mareeba, in far north Queensland, says she has secured the rights to bring the first naturally caffeine-free coffee trees to Australia. Currently caffeine has to be removed from coffee beans through a chemical process which affects the taste of the finished product. Linda Jacques has just returned from Brazil where she met the scientists who discovered caffeine-free plants in Ethiopia. She says she will be the first to bring the variety to Australia once it is cross-bred with a higher yielding strain and she is sure there will be a market. "There is a growing demand ... about 10 per cent of the world's coffee production ... they are using decaffeinated coffee at the moment," she said. ---------- Past news item on the discovery ---------- Naturally decaffeinated coffee plant discovered NewScientist.com news service Andy Coghlan June 23, 2004 A naturally decaffeinated coffee plant has been discovered. Coffee from the new str...

By Chris Mercer Beverage Daily May 29, 2007 Coffee processors and producers will have to wait another year for a new International Coffee Agreement after talks over the last week failed to make a breakthrough. Arguments and a lack of common ground between delegates from several countries are understood to have blighted discussions at the International Coffee Organisation (ICO) headquarters in London. It means the current Agreement will be extended for another year, putting back potentially important reforms that could help the coffee sector to address issues of sustainability, trade and emerging market consumption. An EU official told BeverageDaily.com in February that the end of May deadline for agreeing a new deal looked "too optimistic". Nestor Osorio, ICO executive director, had repeatedly insisted that talks were on track to replace the current agreement, which should have run out in September. On Friday, he admitted defeat. ICO members, which include the EU, US and m...

The negotiation between Starbucks and Ethiopia’s attorneys is continuing though at a slower pace. Starbucks is represented by its external lawyers – not by the company’s in house consul. That, in part, explains the reasons for their feet dragging, I think. Not many details are available from either side at the moment. It seems as though confidentiality is one of the preconditions for the negotiation. From the information I was able to gather, however, the outcome of the negotiation might be something different from what has been at the center of the public dispute. The two sides are apparently playing a give-take game. Starbucks is willing to recognize Ethiopia’s common Trade Mark rights but does not want to support its rights to administrative Trademark rights. Meaning, the company would not support Ethiopia’s application at the United States Patent and Trademark Office to register the marks, Harar, Sidamo, and Yirgacheffe. It looks like Ethiopia’s side is prepared to accept that comp...

By Joseph Olanyo The Monitor May 22, 2007 Ethiopia’s case should be treated as an eye opener for Uganda that intends to do business with Starbucks When Paul Sempa-Mugambwa, former proprietor of Kyagalanyi Coffee Ltd, received an offer for his firm way back in 1992 from a foreign investor, it did not look like an impending end to a whole generation of local coffee processing entrepreneurs. It was however only a matter of time before most of the indigenous coffee entrepreneurs gave in to pressure to sell their plants to cash draped foreign investors who, unknown to local entrepreneurs, had discovered a new niche in the international coffee market. Thus the unprecedented visit recently by officials from one of the largest global suppliers of specialty coffee - Starbucks Coffee Co. could hardly be a coincidence, according to analysts. "They want to start buying coffee from this region and they are looking at Uganda as part of a good quality coffee source," a coffee entrepreneur w...

Khat or Chat is a narcotic plant banned in the United States and most European counties. “Khat’s main psychoactive ingredients are cathinone, which is almost chemically identical to amphetamine, and the milder cathine (norpseudoephedrine). Cathinone prompts the release of the feel-good neurotransmitter dopamine, bringing lucidity, heightened alertness and euphoria.” - Niren Tolsi A growing demand for the leaf both locally and in neighboring countries is fuelling the business. The number of Ethiopian youths chewing khat has exponentially increased in the last two decades. As if to complement the need for more supply, the coffee crisis (1997-2003) led some coffee farmers to resort to growing khat. ----------- Keeping cool as a khat Niren Tolsi Mail & Guardian May 19, 2007 The buzz of an electric haircutter accompanies the comings and goings in one of downtown Durban’s derelict buildings. Men, mainly Ethiopian, come in for a haircut, others, to poke their heads through a door in the...

In a joint statement with Ethiopia, Starbucks announced earlier this month that they have agreed in principle to sign a licensing agreement. That was a big u-turn on the company’s position regarding Ethiopia’s efforts to trademark its famous coffee marks, Harar , Sidamo , and Yirgacheffe . Many people welcomed the decision though with optimism. At the moment, I was not sure what they meant by "agree in principle;" now, I am more eager to read a copy of the signed agreement. The company, seems to be busy spending more on the future. Understandably, the management wants to leave this story behind at any cost and move on. The discomfiture that other multinational companies, such as Nike, had faced in the past, after giving in to high-profile disputes, is the last ditch one would be willing to do what it takes and get over it. Albeit, typical of corporate giants, Starbucks is not going to spend a penny without a guaranteed stream of inflow of benefits to equate the associate...

By Todd Sullivan 24/7 Wall St May 17, 2007 There have been a slew of articles the past week about the price of Starbucks ( SBUX ) shares and whether or not now is the time to buy them. Let's look closer. Currently Starbucks shares trade at $28 for a PE ratio of 31 times this years 89 cents a share earnings estimate. Many people consider this a bargain saying "Starbucks shares have not traded at this level since Oct. 2005." But is Starbucks situation now the same as then? In a word, no . [ emphasis in the original ] If they hit their EPS growth goal, Starbucks will grow earning this years 18% vs the 30% they grew them in 2005 and as each day goes by, that "if" becomes larger and larger. A closer look at last quarters earning shed some light on upcoming difficulties. Earning were met chiefly due to an unusually large $500 million share buyback and enabled Starbucks to gloss over the fact that margins continue to deteriorate. This buyback become larger whe...

By Andrew Cawthorne Reuters May 17, 2007 ADDIS ABABA, May 17 (Reuters) - Ethiopian coffee exports are on course to rise about 2 percent to some 187,000 tonnes in the 2006/07 season, worth around $450 million, the head of the local exporters' association said on Thursday. "As I see from sales quantities so far, it will be a little bit higher than last year, around two percent," Abdulrezak Sherif, new chairman of the Ethiopian Coffee Exporters' Association, said at his office in Addis Ababa. "The market is better than last year. Prices have improved. There is more demand. Maybe we will this year reach $450 million, I think." Africa's largest coffee producer and the birthplace of the bean, Ethiopia exported 183,000 tonnes worth $427 million in 2005/06. Total annual coffee production, including that used for domestic consumption, was 330,000 tonnes last season, and Abdulrezak said the 2006/07 outturn would be similar. The chairman said he had taken over the ...

Starbucks Launches Charitable Campaign, Intros New Beverage Line Fast Casual SEATTLE — Starbucks Corp. has launched a line of new orange-flavored beverages in addition to its signature celebrity “Green Umbrellas for a Green Cause” campaign and auction. The beverage line includes the new Orange Mocha or Orange Crème Frappuccino blended crème. Additionally, Starbucks is offering all Frappuccino blended crème beverages in a new light version — with 1/3 fewer calories. Guests also can sip their Frappuccino blended crème under a Starbucks iconic umbrella. To kick off the start of summer, top Hollywood celebrities who share Starbucks passion for the environment have transformed a series of Starbucks green umbrellas into works of art. The celebrity signature umbrellas will be auctioned to the public beginning May 21. The proceeds from the “Green Umbrellas for a Green Cause” auction will be donated to Global Green USA — a national leader in advocating for smart solutions to global warming. In...

For status of the Starbucks-Ethiopia deal, click here CSRwire May 14, 2007 WASHINGTON DC - The Ethiopian fine coffee sector this week welcomes 2007 EcoQ Peaberry Award Recipient Sweetwater Organic Coffee Company , Florida's vanguard Organic and Fair Trade Coffee Roaster, as the newest licensee to join the recently formed Ethiopian network of licensed distributors. "Sweetwater Organic is a company whose practices embody the sprit of collaboration and sustainable coffee development that Ethiopia's Trademarking and Licensing Initiative is really about. We are very happy to have them join in our network and contribute at this important and historic time. It is important to have roasters on board that pay attention and appreciate the flavor and quality of the fine coffees that Ethiopia produces," commented Getachew Mengistie, Director General of the Ethiopian Intellectual Property Office. The network of licensed distributors is a pioneering group of coffee companies who ...

It’s been 12 days since Starbucks and Ethiopia issued a joint statement saying that they have agreed in principle to sign a licensing, distribution and marketing agreement that recognizes the importance and integrity of Ethiopia’s specialty coffee names. After several months of uphill battle by development agencies, activists and supporters of Ethiopia's plan to trademark its marks, Starbucks has acknowledged a week ago Ethiopia’s ownership of its own coffee marks. “Ethiopia is recognized as the historic birthplace of coffee and the source of some of the finest coffee in the world,” said Howard Schultz, Starbucks chairman, on the press release. Negotiations have continued through last week between representatives of Ethiopia, currently in Washington D.C., and Starbucks officials. Details of the negotiations are not made public to date. The parties are expected to meet here in Seattle this week, reportedly as early as Wednesday, May 16th, for a signing ceremony. Starbucks has reaso...

This is the 5th and final part of the series that has been running for over four weeks. The series assesses Ethiopia’s coffee sector to understand the root causes of its problems and to point out remedial solutions based on the scholarly paper, “ Ethiopia’s Coffee Sector: A Bitter or Better Future?” by Nicolas Petit . In Part IV , we’ve discussed domestic coffee market reforms, constraints, and their impacts on the coffee sector. We’ve also discussed prospects for Ethiopia’s coffee. This current part points out what is being done and what can – and should – be done in order to revitalize the coffee sector in Ethiopia. My heartfelt thanks goes to my dearest friend who brought the paper to my attention. I am equally grateful of the generosity of Nicolas Petit and Blackwell Publishing Ltd for granting me access and permission to use the paper according to their terms of use. ----------------------- So, What Can Be Done? In Ethiopia, coffee is more important to the farmers than it is for...

Some customers find contemplative quotes provocative, anti-Christian Vito Pilieci The Ottawa Citizen May 12, 2007 Starbucks says it won't change an advertising campaign that some believe is anti-Christian, despite boycotts across the United States. The Seattle-based coffee chain has drawn protests because of its "The Way I See It" campaign, which prints comments submitted by customers on its paper cups. One such thought -- written by London, Ont., native Bill Schell -- calls into question the existence of God. "Why in moments of crisis do we ask God for strength and help?" reads Mr. Schell's "The Way I See It" comment. "As cognitive beings, why would we ask something that may well be a figment of our imaginations for guidance? Why not search inside ourselves for the power to overcome? After all, we are strong enough to cause most of the catastrophes we need to endure." The company numbers each of its comments -- Mr. Schell's is No. 24...

Coffee is produced by a number of different global industries in almost every country in the world, making it one of the best products for tracking globalisation. BBC World Service's The Cost Of... programme tracked a kilo of coffee from its origins in Ethiopia to the fashionable coffee shops of Europe and the US. BBC World Service May 10, 2007 In the Ethiopian village of Yirgacheffe, farmers take sacks of raw coffee cherries to a market set up by a local farming co-operative. Scales weigh the coffee and money is paid to each farmer. At this primary stage, a kilo of coffee cherries costs $2.25 (£1.12). For some, however, the price they receive is far less, because where co-operatives are not an available option, farmers are offered below market rate by middlemen with the promise of ready cash. Robbie Shalo, one of the coffee harvesters who works during harvesting, sells at three birr per kilo - or 33 cents. "This is not enough to live by, even though I work here," he expl...

Starbucks Declined saying, "the licensing agreement has not yet been finalized" Democracy Now! the TV/Radio/Internet media outlet with a growing popularity in the US and many other countries, had a live broadcast yesterday regarding the status of the coffee trademark dispute between Ethiopia and Starbucks. I had the privilege of being one of the guests. Following is the transcript courtesy of Democracy Now! --------------- Following Public Campaign For Trademark Efforts, Coffee Giant Starbucks Signs Licensing Deal that Could Bring Millions to Ethiopian Farmers Many say the public pressure on Starbucks helped force them into the licensing agreement. Activists from the Ethiopian community, regional Fair Trade coalitions, University students, and consumer groups all got involved. But perhaps the most vocal of public campaigns was the one started by Reverend Billy, the founder of the Church of Stop Shopping. He took his campaign to the doorsteps of Starbucks coffee houses. With ...