Starbucks pays outright prices for the coffee it purchases.  Apart from paying overprice, we help the suppliers in their cultivation, improving their work and life conditions, which leads to a general benefit in the coffee industry.

The coffee industry is made up of two different markets: commodity and speciality.

The price tag for the latter (which is the only type purchased by Starbucks) is always higher that that of the former.  For instance, in 2004, Starbucks paid U$ 2.29 on average for every Kg of green coffee.  This price surpassed its New York benchmark value by 74%.

Today, the coffee market situation is improving slightly.  During the fiscal year of 2006, the New York coffee stock averaged at U$ 1.04 per pound (U$ 2.29 per kilogram)

Starbucks acquired 294 million pounds of high quality coffee for which it paid U$ 1.42. This price is a measure of all our coffees, including those bought from C.A.F.E (C.A.F.E. Coffee and Farmers Equity and Fair Trade.

Coffee farming, like any other business, must be economically feasible to ensure long-term sustainability. Starbucks believes the higher prices we pay helps farmers cover their production costs and better provide for their families. Although our overall purchasing impact may be relatively small, we’ve taken leadership steps to promote environmental and social stewardship in coffee-origin countries.