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Starbucks,Ethiopia and the National Coffee Association

11/03/06 @ 06:00:00 am, by Kate Hopkins Email 2400 views • Categories: Coffee, Food Politics, Starbucks

Oxfam, a non-profit group dedicated to working with others to overcome poverty and the suffering that comes along with it, has accused Starbucks of forcing an agreement upon Ethiopia that benefits Starbucks rather than Ethiopia. It started after the following occurred:

Last year the Ethiopian government filed applications to trademark its most famous coffee names, Sidamo, Harar and Yirgacheffe. Securing the rights to these names would enable Ethiopia to capture more value from the trade, by controlling their use in the market and thereby enabling farmers to receive a greater share of the retail price. Ethiopia’s coffee industry and farmers could earn an estimated $88 million (USD) extra per year.

Ethiopia has even gone as far as to consult with intellectual property experts and legal counsel, and has asked Starbucks to sign an agreement that acknowledges Ethiopia’s ownership of its coffee names.

Oxfam then claims that Starbucks asked the National Coffee Association (NCA) to block the country's bid to trademark the three types of coffee bean in the US.

Starbucks says this is nonsense.They also state that:

Starbucks has never filed an opposition to the Ethiopian government’s trademark application, nor claimed ownership to any regional names used to describe the origin of our coffees.

Which is true. Starbucks has never filed an opposition to the trademark application. That honor goes to the National Coffee Association and their Government Affairs division....which happens to be chaired by
Dub Hay
, who in his spare time works for...say it with me...the Starbucks Coffee Company.

Can you say "conflict of interest"?

The solution here is simple...If Starbucks "supports the recognition of the source of our coffees and have a deep appreciation for the farmers that grow them", then they should ask the NCA to discontinue their opposition to the trademark.

The odds of them doing that? Little to none.

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Comments, Pingbacks:

Comment from: Nicholas Caratzas [Visitor]
I think we're seeing the exact opposite of "conflict of interest" here. The organization's overview statement confirms that the NCA is a trade organization. Trade organizations exist to advocate the interests of their membership, even when (actually, especially when) those interests conflict with others'.

Starbucks' answer reeks of SOP corporate PR B.S., but Dub Hay's membership on the NCA isn't a conflict of interest.
PermalinkPermalink 11/03/06 @ 09:35
Comment from: April [Visitor] · http://www.sotomayora.blogspot.com
Starbucks needs to jump on the fairtrade wagon--if its customers are willing to fork over five bucks for a latte, a few extra cents to support starving people in Ethiopia shouldn't deter too many. Great article.
PermalinkPermalink 11/05/06 @ 02:55
Comment from: Aaron [Visitor]
Starbucks has jumped on the fair trade bandwagon. They sell 10% of the fair trade coffee sold in the US. If they went to fair-trade only, they would use ALL of the fair trade coffee grown in the entire world. Furthermore, it has promoted it's "Coffee and Farmer Equity" practices, which benefit farmers in ways fair trade cannot. For instance, growers from the largest fair-trade co-op in east timor have stated that implementation of CARE practices will benefit them more than their fair-trade certification. Also, even in the cases of its non-fair trade coffees, starbucks pays premium prices over market value. Not to mention that it pays more for health insurance for its US employees than it does on coffee beans. Both of these factors contribute to their lattes costing several dollars.

By the way, can you say this with me: "non-sequitur". The ethiopia issue does not relate directly to fair trade. But if you want to open this discussion up to their social responsibility practices in general, go ahead. Sure, starbucks may be on the wrong side of that issue, but since 2000, they have improved their Social Responsibility practices relating to growers more than you think. They have more that they can do, but they are moving in the right direction, and quickly so. Educate yourself before picking an argument.
PermalinkPermalink 11/05/06 @ 12:00
Comment from: pitofmystomach [Visitor] · http://www.pitofmystomach.typepad.com
Starbucks will probably try to buy Ethiopia soon. There'd be no conflict of interest then.
PermalinkPermalink 11/06/06 @ 03:14

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