The additional $20 million commitment reinforces Starbucks mission to
make coffee the first sustainable agriculture product through ethical
sourcing, healthy coffee trees, farmer financing and agronomy expertise
SEATTLE--(BUSINESS WIRE)--
In response to critically low coffee prices in Central America,
Starbucks (Nasdaq: SBUX) announced today a commitment of up to $20
million to temporarily relieve impacted smallholder farmers with whom
Starbucks does business, until the coffee market self-corrects and rises
above the cost of production. These funds will go directly to
smallholder farmers in Nicaragua, Guatemala, Mexico and El Salvador to
subsidize farmer income during the upcoming harvest season in Central
America.
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In response to critically low coffee prices in Central America, Starbucks has committed up to $20 million to temporarily relieve impacted smallholder farmers with whom Starbucks does business with in Nicaragua, Guatemala, Mexico and El Salvador (Photo: Business Wire)
“A majority of the coffee we purchase comes from smallholder farmers and
the coffee crisis in Central America related to low prices cannot be
ignored,” said Michelle Burns, senior vice president, Global Coffee and
Tea. “We have a role and responsibility in helping smallholder farmers
sustain their livelihoods. Their success will help ensure the long-term
health of coffee productivity.”
“We have been severely affected by the recent price decline in the
futures market. With today’s prices I can’t invest in my farm, in fact,
I can barely cover labor costs. With these prices, my farm is just not
profitable,” said Pedro Rosales Ubeda, Villa Nueva farm owner in
Nicaragua. “Through Starbucks initiative I could receive a higher price
for my coffee, cover my expenses and make a profit. This means I could
provide better conditions to coffee pickers and their families. Also,
this will allow me to invest more in my farm, be more productive and
offer a better-quality coffee.”
"The National Coffee Association commends Starbucks for this important
initiative to support coffee farmers, which is especially timely given
that a rising supply of coffee has been impacting prices," said Bill
Murray, President and CEO, National Coffee Association, USA.
“We have seen firsthand the effects of these historically low coffee
prices on smallholder farmers,” said Ric Rhinehart, executive director
of the Specialty Coffee Association of America. “It will be through the
strong support of the coffee industry and its leading companies, large
and small, that we can set the stage for a viable coffee future, letting
the farmers know their investment cost in upcoming crops will be
compensated, providing them with much needed stability in the industry.”
20 Million Healthy Trees to Colombia
Additionally, Starbucks will expand its existing 100
Million Tree donation program and partner with The Colombian Coffee
Growers Federation to supply 20 million coffee trees, technical support
and supplies over the next two years to smallholder farmers in Colombia.
The seedlings will replace trees that are declining in productivity due
to age and diseases like coffee leaf rust. This incremental investment
is in line with the ongoing support Starbucks provides to coffee farmers
and their communities, including access to $50 million toward
low-interest-rate loans to smallholder farmers to support reinvestment
in coffee and to advance more sustainable practices.
“We must strive for the economic sustainability of coffee producers,”
said Francisco Santos, Ambassador of Colombia to the U.S. “We thank
Starbucks for contributing to reforestation efforts in coffee-growing
areas, working with the Colombian Coffee Growers Federation and
deepening the alliance between the two organizations.”
“The coffee we drink depends on the well-being of 25 million coffee
farmers, and right now - with coffee prices below the cost of production
– farmers are in trouble,” said Bambi Semroc, who leads the Sustainable
Coffee Challenge, in partnership with Starbucks, and serves as Vice
President of Sustainable Markets and Strategy at Conservation
International. “Without stable livelihoods, farmers can’t invest in
their farms or in protecting the nature coffee depends on for its
future. This fund, aimed directly at the most vulnerable farmers, is an
industry first – and represents the bold actions we need more of to make
coffee truly socially, environmentally and economically sustainable.”
Serving Ethically Sourced Sustainable Coffee
Starbucks has achieved 99% ethically sourced coffee and is working to
make coffee the world’s first sustainable agricultural product by
collaborating with others. For more than 46 years, Starbucks has
supported farmers through investments and commitments including a
20-year partnership with Conservation International to develop C.A.F.E.
Practices, the company’s sustainable coffee buying practices program
that rewards coffee supply chains through strategic premiums for
quality, social responsibility, environmental performance and economic
transparency. Additionally, through the Starbucks Foundation, the
company supports the empowerment and economic opportunity of more than
250,000 women throughout our supply chains.
Starbucks has built a network of nine farmer support centers around the
world to train farmers on the best agronomy practices as well as
invested in open-source research and development at Hacienda Alsacia,
the company’s farm in Costa Rica. This open-source research is available
to help ensure the future of coffee is strengthened by supporting new
coffee varietals that are more rust resilient, while preserving high
quality and increasing productivity.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with stores
around the globe, the company is the premier roaster and retailer of
specialty coffee in the world. Through our unwavering commitment to
excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in the
experience, please visit us in our stores or online at news.starbucks.com or www.starbucks.com.
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Starbucks Coffee Company
press@starbucks.com
206-318-7100
Source: Starbucks Coffee Company