How Starbucks and Farmers Work Together for Great Coffee.

Starbucks has always been committed to purchasing coffee in an ethical and socially responsible way. We spend more time in coffee growing regions than any other coffee company and we strive to understand what farmers need to sustain their livelihoods. For every purchase, Starbucks seeks to apply the same principles – paying premium prices to help farmers make a profit, caring for social and environmental needs of coffee-growing regions and ensuring the long-term supply of high quality coffee. What does this mean to coffee growing communities?

We encourage participation in C.A.F.E. Practices (Coffee and farmer equity practices)

   • Implement the social and environmental guidelines of C.A.F.E. Practices

   • Score high in measurements of socially responsible working conditions and standards,      and progressive environmental practices

~ In fiscal 2007, Starbucks purchased approximately 103 million kilos of our coffee under C.A.F.E. Practices, exceeding our target of 102 million kilos, a 68 percent increase over last year and representing 65 percent of our total coffee purchases.

~ By 2013, our goal is to purchase 80 percent of our volumes from C.A.F.E Practices-verified suppliers.

We require economic transparency

~ Since 2003, price transparency has been a requirement in Starbucks coffee contracts, which includes purchases from C.A.F.E. Practices participants and purchases of Fairtrade Certified coffee.

~ We have been successful in our efforts to improve transparency. In fiscal 2007, 99 percent of Starbucks coffee contracts included an economic transparency clause requesting documentation of payments made to various participants in the supply chain. In 95 percent of these contracts, economic transparency was required to the farm level.

We pay premium prices

~We pay the higher prices that premium coffee demands. Our goal is that those who grow our coffee not only can take care of their families, but can also help to assist with the social and environmental needs of their communities.

~In fiscal 2007, Starbucks paid on average USD1.43 per pound (NZD 4.43 per kilo) for all coffee purchased. For comparison the guaranteed minimum Fairtrade price is USD1.26 per pound.

We purchase Certified and Conservation Coffee

~ Starbucks is one of the largest purchasers of Fairtrade certified coffee in the world, purchasing approximately 16% of the global supply. Around 6% of all of our coffee is Fairtrade certified.

~ Our first relationship with the Fairtrade labelling organisation began in April 2000. Every year since, we have significantly increased our purchases of Fairtrade certified coffee.

~ Café Estima Blend™ Fairtrade is available as freshly brewed filter coffee in Starbucks stores in New Zealand.

We collaborate with farmers through the Farmer Support Center

~ Our first Farmer Support Center (also known as Starbucks Coffee Agronomy Company) opened in 2004 in San Jose, Costa Rica, to house a team of experts in soil management and field-crop production to promote coffee farmers’ livelihoods and the future supply of high-quality coffee.

~ Two new Farmer Support Centers are in the process of opening in Ethiopia and Rwanda in 2008. These Farmer Support Centers will provide resources and ongoing support to East African coffee communities with the goal of improving coffee quality and growing practices and increasing the number of farmers participating in the C.A.F.E. Practices.

Long term commitment to Coffee Communities.

Between 2004 and 2006, Starbucks committed $8.5 million in loans to non-profit organisations who make affordable credit available to coffee farmers so that farmers can invest in their farms and their success into the future.

We have also funded several non-profit organisations that provide Fairtrade registered cooperatives with pre-harvest financing and, in the last 2 years, Starbucks has funded $4.1 million in social development projects in coffee growing communities which involved nearly 100 projects and benefited 545,000 people.

We are proud of the longstanding relationships that we have with coffee farmers in more than 27 countries and are committed to purchasing our coffee in an ethical and sustainable manner regardless of labels and certifications.

Starbucks will continue to work with non-governmental organisations and other stakeholders to improve upon various components of our approach. We are committed to our work with other industry leaders in helping to strengthen coffee farms for the future.

Additional Information

For more information read our Frequently Asked Questions

Get details on our Corporate Social Responsibility Annual Report at www.starbucks.com/csrannualreport.

Meet some of the coffee farmers who grow our coffee at www.whatmakescoffeegood.com