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What Can Be Done To Save Ethiopia’s Coffee Sector? – Part I

Assessment of Ethiopia’s coffee sector to understand root causes of its problems and discuss remedial solutions to internal problems. This series will discuss the scholarly paper, “ Ethiopia’s Coffee Sector: A Bitter or Better Future? ” by Nicolas Petit . By Wondwossen Mezlekia The documentary film, Black Gold and the public dispute between Ethiopia, the birthplace of coffee, and the multinational coffee chain, Starbucks over coffee trademarks have helped publicize the state of Ethiopia’s economy, which is dependent on coffee trade. As a result, the paradox of Ethiopia’s poverty amid unmatched resources the country is blessed with and while supplying some of the best coffees to the multi-billion dollar industry has become the center of attention. Many development experts and analysts in the field offer explanations to the problems facing Ethiopia and other coffee growing nations within the context of international trade. Several factors including lack of mechanisms to equate supply an...

Is TransFair Tailoring "Fair Trade" to Suite Corporate America?

The title reflects my personal frustrations. I support the fair trade movement and actively promote its ideals. Farmers in developing countries should be paid a price that is at least fair enough to compensate them for what their labor is worth. Fair Trade can also empower these farmers because, when farmers’ cooperatives begin to sell their produces to roasters, distributors, and retailers directly - without the interference of middlemen, they build a negotiation power. In the words of TransFair USA, “This [Fair Trade] leads to higher family living standards, thriving communities and more sustainable farming practices. Fair Trade empowers farming families to take care of themselves - without developing dependency on foreign aid.“ The Fair Trade movement is more prevalent in Europe than here in the US, where it is slowly gaining momentum. The aggressive marketing campaign by TransFair USA – the national labeling organization for North America is playing a significant role in promotin...

Coffee Break: Starbucks Has a Crack In Its Image

Coffee Break 'Top employer' Starbucks has a crack in its image By David Segal Washington Post Via MSNBC April 12, 2007 NEW YORK - Four years ago, when he first donned a green apron at the Starbucks at Madison Avenue and 36th Street, Daniel Gross must have looked like any other scruffy college grad in need of a paycheck and a shave. Within a few months, though, it was clear that this Los Angeles native with the perpetual stubble was something very different: the Norma Rae of the Caramel Macchiato. Soon after he started, Gross and some fellow baristas began to meet at each other's homes to gripe about their jobs. The pace was exhausting, the store chronically understaffed and, under Starbucks's "flexible" scheduling rules, the number of hours they worked could change week to week, leaving them unsure of how much they would earn. Gross didn't look for a different employer. He climbed on the espresso bar waving a placard that read "UNION" -- metaphor...

Africa Trade Ministers to Meet U.S. Business Executives Next Week

The Whitaker Group in Action? Africa Trade Ministers to Meet U.S. Business Executives Next Week The Nation (Nairobi) Via allAfrica April 12, 2007 Kenya is amongst seven African countries whose trade ministers will meet US West Coast business chiefs next week. A statement released yesterday, said the African ministers would meet executives from aircraft-maker Boeing, Starbucks, Barclay's, GAP, Nexant, Levi's and the port of Seattle. "Its purpose is to foster crucial relationship building between African delegates and business leaders. "It will also serve to help re-brand African nations as progressive emerging markets that are presenting the global business community with exciting new trade and investment opportunities," said the release. Besides meeting top executives from the US corporates, the group would visit Bill & Melinda Gates Foundation and the editorial board of Seattle Times. They will participate in a panel discussion on the African Growth and Opp...

Beware of Starbucks’ “Inconsistency”, Oxfam Warns Australians

"They [Starbucks] have done a lot of good things, most notably in East Timor, which has some resonance with Australians, but the fact that they displayed that attitude towards the Ethiopians indicates to me that it is not particularly coherent and that they have some way to go," - Andrew Hewett, Oxfam Australia executive director New Boss Out to Show Coffee Chain's Caring Side Julian Lee The Sydney Morning Daily April 12, 2007 STARBUCKS is to mount a drive to capture the hearts and minds of Australians as part of a wider campaign by its new managing director to "educate" consumers about the company's social values. Two months into the job Mark Ring says more could be done to play up the "commonality" of values he believes the company shares with Australians, namely a commitment to communities, the environment and fairness to its employees. "There is scepticism out there," he said. "We are an American company and a large one … so peop...

Starbucks’ Policies Don’t Match Image

“The proposal of Ethiopian coffee farmers represents a much-needed step toward reducing the power imbalance in coffee production and ensures that farmers can truly enjoy the fruits of their own labor. If Starbucks is, as its CEO says, the “quintessential people-based business,” it will respect Ethiopian farmers and farmers around the world and end its exploitative practices.” - Michelle Castaneda Starbucks’ Policies Don’t Match Image By Michelle Castaneda Yale Daily News April 2, 2007 In response to increasing public demand for corporate social responsibility, Starbucks has undergone an image makeover. The company has recently publicized its commitment to supporting the communities that grow its coffee in Latin America, Asia and Africa, and has included one fair-trade coffee option in its menu (although I have not seen this coffee in the New Haven store for some time). Fair-trade organizations reduce the intermediary suppliers between the coffee growers and the retailers, allowing grow...

Film Provides Glimpse Into Politics of Coffee

By Matt Goldman Yes! Weekly The coffee industry is now valued at $80 billion, making it one of the most lucrative commodities, second only to oil. Every day 2 billion lattes, mochas, cappuccinos and regular old cups of joe are served up worldwide. For many, coffee isn't just a morning pick me up, it's a lifestyle. In Trieste, Italy, where some of the best cups of coffee are made, baristas live by the mantra "wake up, smile... coffee." And people are willing to pay. A 16-ounce cup can go for as much as $4 at some corporate outfits. Ironically, in Sidama, Ethiopia, which supplies coffee beans to the prolific Starbucks Corp., growers on the verge of bankruptcy and famine are found literally praying for a fair price for their product. It's a staggering paradox. Tadessa Meskala, owner of the Oromia Coffee Farmers Cooperative Union, seeks to protect himself and his farmers from this blatant exploitation. The documentary Black Gold: Wake Up and Smell the Coffee, screened...

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