Corporate Irresponsibility: Starbucks against Ethiopian coffee farmers

In 2006 global coffee giant Starbucks had to face a daunting task of living up to its socially responsible image. For over a year, Ethiopia has sought a dialogue with Starbucks about supporting the country's efforts to return more of the price of its coffees in world markets to the farmers who produce them by seeking trademark rights for Sidamo, Harar and Yirgacheffe coffees. These coffees have been sold under Starbucks' Black Apron Exclusives line for up to $26 a pound, but Ethiopian coffee farmers receive only 5-10% of the retail price, in a country where millions live on just a dollar a day. Ethiopia is one of the world's poorest countries, and coffee is among the most valuable commodities of the country. These rights could help to lift farmers and their families out of poverty. 

"Starbucks continues to break its promises to the poorest communities," said Seth Petchers, coffee lead in Oxfam International's Make Trade Fair campaign. "The company has branded itself as a friend to poor farmers. But when these farmers seek the right to own their coffee brands and compete in the global market on an even playing field, Starbucks refuses to support them."

After a year, Starbucks finally issued a joint release with the government of Ethiopia stating that the company would no longer stand in the country's way to obtain trademarks. However, Starbucks had refused to engage in good-faith discussions with Ethiopia about the trademark initiative.