Poor Farmer

Coffeehouse conundrum facing returning CEO Howard Schultz A Starbucks coffee shop in the financial district of Boston experiences a high volume of business during the noon hour Wednesday afternoon, Aug. 1, 2007. Starbucks is expected to release quarterly earnings on Wednesday. (AP Photo/Stephan Savoia) By Jasmin Aline Persch MSNBC January 29, 2008 Starbucks brought us the Italian coffee experience, teaching us to sip fancy espresso drinks in quaint cafes. Now the trendsetter is falling out of vogue — and some question whether the ubiquitous coffee chain can be cool again or will sink to a commodity. That’s the conundrum facing Howard Schultz who’s returning as head of Seattle-based Starbucks, which for years was hailed by customers, investors and business professors, alike. That changed recently: The company’s stock price was slashed almost in half this past year. And store traffic slipped last quarter for the first time since the company went public. Many trust, though, that Schultz...

Solomon Mburu Business Daily (Nairobi) via All Africa January 28, 2008 The deal to sell 100 per cent Kenyan roasted coffee to China has hit a snag following a surge in the prices of the commodity. Prices of Kenyan coffee have been rising since late last year, with Mbuni heavy and Mbuni light which are the cheapest coffees from Kenya shooting up from $ 50 and $70, to $75 to $100 per 50 kilogramme bag, respectively. The price rallies have been caused by concerns over reduced supply due to low production expected this season. Experts say changing weather patterns were responsible for the 20 per cent drop in production. It has now emerged that due to the unprecedented price increases, the deal to open up the Chinese market for Kenyan coffee will have to be delayed. This will consequently hold up efforts to diversify the export market for Kenyan coffee, ensuring farmers get better value from the crop. The Kenya Planters Co-operative Union (KPCU) which is spearheading the deal said renegoti...

By ELIZABETH M. GILLESPIE AP Business Writer The Seattle Times January 24, 2008 Neither Starbucks Corp. Chairman Howard Schultz nor the chief executive he recently replaced received bonuses last year, as the coffee retailer struggled with weak demand amid the U.S. economic downturn, high dairy and energy costs and growing competition from cheaper competitors. Schultz, who reclaimed the CEO title when Starbucks fired Jim Donald earlier this month, received compensation the company valued at $12.6 million in fiscal 2007, according to a filing with the Security and Exchange Commission on Wednesday. Schultz was paid a $1.19 million in salary, but his package for fiscal 2007, which ended Sept. 30, was boosted by stock options worth $10.6 million when they were granted and perquisites valued at $861,398. The perks included nearly $497,000 for personal security, $3,237 for health insurance premiums and an annual physical, $13,500 for retirement plan contributions, $155,100 for a personal sec...

By JANET ADAMY WSJ January 22, 2008 Starbucks Corp., the company that popularized the $4 cup of coffee, is testing a $1 cup of brew and free refills for drip coffee. The Seattle coffee giant is experimenting with selling a so-called "short" size drip coffee for $1 in the Seattle area, Starbucks spokeswoman Valerie O'Neil confirmed. The short size is an 8 oz. cup that is not officially on the Starbucks menu but has long been ordered by in-the-know patrons who want small drinks. Typically, a short, brewed coffee would sell for around $1.50, though that can vary by several cents depending on the store. Starbucks is also testing offering free refills for traditional brewed coffee, also in the Seattle area. Ms. O'Neil would not elaborate on the specifics of the tests or say how many locations in the Seattle area are doing it. She said the tests aren't indicative of any new business strategy. Starbucks has said that pressures on consumer spending have slowed customer t...

The franchise Second Cup is considering offering a fair trade option both on and off campus Image By: Laura Tomkins By Rebecca Vasluianu Cord Weekly ( http://www.cordweekly.com/ ) Jan 16, 2008 Scrutiny into Second Cup’s lack of fair trade options has become a local concern here at Laurier, as some students are beginning to realize that their beliefs concerning the coffee they drink are false. Groups like Fair Trade Toronto have released statements and issued protests criticizing Second Cup’s lack of fair trade certified coffee, and recently the issue has become a question at WLU. Wilfrid Laurier University Students’ Union (WLUSU) VP: University Affairs Lauren McNiven, for example, has become alarmed by the fact that many students and faculty have no idea that Second Cup is not fair trade certified. “I’ve talked to a lot of people who all cite Second Cup as being fair trade and that led me to go look on their website and read about it,” explains McNiven. “Usually, organizations will h...

Inside the New York Coffee Exchange Source: Coffee Research Institute via coffeeresearch.org There are two markets for coffee: the cash market and the futures market. The cash market is the market today. It is the price you would pay for coffee today if you could receive it today. The futures market is used to help determine the price for future deliveries. It is used to purchase a contract today to guarantee a future shipment of coffee. More importantly, however, the futures market for commodities like coffee is used to help protect against the wild variations that occur due to coffee market speculation. The latter reason will be explained in further detail through the help of an example. Futures Market: Coffee Exchange Analysis Assume it is currently May and assume the “C” market price for July shipment is at 95 cents/lb. Now pretend that today a coffee producer sells two units of coffee (1 unit = 37,500 lbs) to a coffee roaster or importer for 5 cents/lb over the “C.” The cof...

16 Part Curriculum For Grades 4 Through 9 Also Covers Cooperative Economics CSRwire January 16, 2008 WEST BRIDGEWATER, MA - In response to hundreds of requests from parents and teachers the Fair Trade pioneer Equal Exchange introduced today one of the first comprehensive Fair Trade curricula in the U.S. "Win Win Solutions: An Introduction to Fair Trade and Cooperative Economics" is designed for grades 4 through 9 and raises awareness of core issues concerning food production and global trade, and of the role of American consumers. The curriculum helps to demonstrate the link between personal actions and community efforts to create a more just and sustainable world. Win Win Solutions' four units and 16 classes incorporate participatory methods and satisfy many basic U.S. curriculum standards including Social Studies, Geography, Math, and Economics. "After 20 years of talking to and educating American coffee drinkers about Fair Trade, it's time we talked and listen...