For Immediate Release
Fair Trade Leader Praises Starbucks' Step Toward More Equitable Purchasing Model
Urges Deeper Commitment to Small Farmers
Canton, MA. — April 14, 2000 — The country's leading fair trade coffee company praised Starbucks for its recent announcement of intent to purchase a small portion of its coffee under certified fair trade terms. Massachusetts-based Equal Exchange pioneered the fair trade coffee movement in the United States in 1986 and to date remains the largest and only company to purchase 100% of its coffee from small farmer cooperatives under internationally recognized fair trade criteria.
"We are pleased to see Starbucks join the growing number of coffee roasters considering fair trade," said Rob Everts, co-director of Equal Exchange. "However, the commitment Starbucks has made to small farmers appears quite limited and we encourage them purchase a more meaningful portion of their coffee under fair trade terms. With their volume, Starbucks could make a world of difference in the lives of thousands of peasant farmers," Everts added.
According to published reports, Starbucks' commitment to fair trade is for one year pending consumer reaction. Furthermore, its fair trade coffee will only be available in packages, a small percentage of the company's overall coffee sales. It will not be available by the cup in their 2,300 stores.
"Our own growth over the past ten years shows consumers do support fair trade," said Everts. "What we would like to see from Starbucks - even if it meant losing some of our own customers - is a corporate commitment to small farmers."
Several years after committing to a code of conduct for their plantation suppliers in Guatemala, Starbucks has yet to fully comply. Likewise, publicity surrounding the company's foray into more environmental-friendly shade grown coffee greatly surpassed the scale of its purchases. It is this limited follow-through that has Equal Exchange concerned about Starbucks' commitment to small farmers.
Fair trade is a practice that incorporates the welfare of peasant coffee farmers into the relationship between producers and importers, roasters and consumers. Criteria include: purchasing directly from small farmer cooperatives only; guaranteeing a minimum price of $1.26 per pound ($1.41 for organic); offering pre-harvest financing; and entering into long term relationships with trading partners.
Over the course of its fourteen years in business, Equal Exchange, a worker-owned cooperative, has paid out over $1 million in above market "premiums" to its coop partners. Last year Equal Exchange purchased 1.3 million pounds of fair trade coffee from 15 cooperatives in 9 countries. The company's sales were $6.3 million.
Last November, Business Ethics magazine named Equal Exchange one of the most ethical businesses in the country for its "path-breaking approach to fair trade, defining supplier welfare as part of business success."
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More:
http://www.equalexchange.com/fair-trade-leader-praises-starbucks-step-toward-more-equitable-purchasing-model