Oxfam Calls on Starbucks to Stop Bullying the Poor

Avalanche of consumer complaints hits coffee company for refusal to sign agreement with Ethiopia

Global coffee giant Starbucks has refused to move forward in negotiations with Ethiopia on the trademarking of its coffee names unless it's on the company's own terms.

3 November 2006

Global coffee giant Starbucks has refused to move forward in negotiations with Ethiopia on the trademarking of its coffee names unless it's on the company's own terms, according to international agency Oxfam. Oxfam is calling on Starbucks to stop forcing an alternate agreement on Ethiopia, and come to the table open and willing to negotiate.

Since Oxfam spoke out on the issue last Thursday, over 60,000 concerned consumers have faxed or called the company to express their support for Ethiopian coffee farmers. In a statement released yesterday, Starbucks called on Oxfam to end its campaign.

'Starbucks has engaged in some positive initial steps to help poor coffee farmers I don't understand why they won't come to the table to discuss Ethiopia's proposal in good faith, said Seth Petchers, Oxfam International's Make Trade Fair campaign coffee lead. Ethiopia has asked Starbucks to acknowledge Ethiopia's ownership of its coffee names.

'Ethiopia's proposal is an innovative step to make trade fair, said Robert Fox, executive director of Oxfam Canada. 'Canada wisely granted the trademarks, as did Europe and Japan. Our supporters will keep up the pressure until Starbucks comes to its senses.

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.

In its statement yesterday, Starbucks claimed the trademarking initiative might hurt farmers if 'roasters stop purchasing Ethiopian coffees. The suggestion that companies might punish Ethiopia for requesting Starbucks and others to recognize the country's rights to its coffee names suggests an unwillingness to work in true partnership with farmers, Oxfam said. 

'We have 15 million poor people who depend on income from coffee every single day. Our goal for this project, which was developed in consultation with the farmers unions, is to help improve conditions for poor coffee growers, said Getachew Mengiste, Director General, Ethiopian Intellectual Property Office.

Ottawa