·         The film Black Gold raises important issues that are a priority for companies like ours who believe we have a responsibility to improve how our industry works with coffee farmers. 

·         We agree with the filmmakers that our industry must find better ways to support farmers, something we’ve been committed to doing for our entire 35-year history

·         Central to this commitment is how Starbucks buys coffee, particularly through our C.A.F.E (Coffee and Farmer Equity) Practices – which are independently-verified coffee purchasing guidelines we developed with the NGO Conservation International. 

·         These guidelines help ensure farmers receive good value for their coffee while allowing us to build longer-term relationships with those who take care of their workers and their land.

·         Under C.A.F.E. Practices, Starbucks buys on a preferential basis from farmers and suppliers who:

            -Meet prerequisites for high-quality coffee and economic transparency (documentation providing information on how much money the farmer received).

            - Implement social and environmental guidelines

            -  Implement socially responsible working conditions and standards, and progressive     environmental practices.

·         In fiscal 2006, Starbucks purchased 294 million pounds (133 million kilograms) of coffee and paid an average price of $1.42 per pound ($3.12 per kilogram).  During the same period the industry average “C” (commodity) market price was $1.04 per pound.

·         In fiscal 2006, Starbucks purchased 155 million lbs. (70 million kg.) of coffee (out of 294 million lbs./133 million kg purchased) under C.A.F.E. Practices, exceeding our target of 150 million lbs. (68 million kg.)

·         By paying prices that allow us to buy the best coffee available and working with farmers who share our commitment to the best growing, labor and environmental practices, we’re creating a reliable source of premium coffee for us while also providing certainty, predictability and sustainability for the farmers with whom we partner. 

·         In fiscal 2006, Starbucks exceeded our goal of 12 million lbs. (5 million kg.) with purchases of 18 million lbs. (8 million kg.) of Fair Trade Certified™ coffee. This represents approximately 14 percent of global Fair Trade Certified™ coffee imports.

·         Although the Black Gold raises important issues, we believe it missed an opportunity to show efforts such as ours as well as and other approaches companies and organizations are using to try to address these global, industry-wide issues. 

·         We also know there is room to improve.  We believe that to effectively address the need for economic development in coffee-growing communities, companies must work with governments, coffee growers, non-governmental organizations and others to affect real change, something Starbucks is firmly committed to continue doing.

·         Through its collaboration with the NGO CARE International, Starbucks Coffee Spain is currently contributing to the construction of an adult education centre in the area of Harrar, Ethiopia. This is part of Starbucks Coffee Company’s contribution of 500.000 dollars over 3 years to water and sanitation, child and adult education and irrigation and agriculture projects in this area.   

·         Between 2002 and 2006 Starbucks invested $2.4 million in a number of community projects in Ethiopia. Over these 4 years Starbucks also increased its purchases of Ethiopian coffee by over 400% which means further income and work for coffee farmers and their families.

·         By investing in affordable credit programs, schools, hospitals, clean water systems and more, we’re hoping to help improve the lives of farmers and their families. For us, this is not only consistent with our values; we believe it also makes good business sense.

For more detailed information about Starbucks relationship with coffee farmers, please visit www.starbucks.com/aboutus/pressdesc.asp?id=713.

For more information on how we do business, please visit www.whatmakescoffeegood.com.