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Starbucks pays farmers above-average price for coffee

- Press Association National Newswire - Café giant Starbucks has increased the average price it pays to coffee farmers to almost 40 cents (20p) per pound a


- Press Association National Newswire -

Café giant Starbucks has increased the average price it pays to coffee farmers to almost 40 cents (20p) per pound above industry market prices, the company just announced. The coffee firm also said it was sourcing more than half its coffee through a sustainable scheme developed with environmental charity Conservation International.

By Emily Beament, PA

Cafe giant Starbucks has increased the average price it pays to coffee farmers to almost 40 cents (20p) per pound above industry market prices, the company announced today.

The coffee firm also said it was sourcing more than half its coffee through a sustainable scheme developed with environmental charity Conservation International.

Starbucks said the average price it paid rose from 1.28 US dollars (65p) per pound in the previous financial year to 1.42 US dollars (72p) in 2005/06, while the market price was 1.04 US dollars (53p).

The amount of coffee sourced under its 'coffee and farmer equity practices'' (CAFE), which aims to provide incentives to farmers to improve the quality of their coffee and grow it in an environmentally and socially responsible manner, increased 100% in 2005/06.

Starbucks bought 155 million pounds (70 million kilograms) - 53% - of its coffee under the scheme in 2005/06, up from 77 million pounds (35 million kilograms) the previous year.

The company said it expects to buy 225 million pounds of CAFE Practice-verified coffee next year.

In addition, Starbucks said it purchased two million pounds of conservation shade-grown coffee, 12 million pounds of organic and 18 million pounds of Fairtrade coffee last year.

Alain Poncelet, vice president and managing director of Starbucks, said: 'We are passionate about coffee but we are also passionate about the wider coffee-growing community and the leadership role we play as a significant buyer of high-quality coffee.

'Starbucks adheres to the CAFE Practice guidelines because we see it as an investment together with farmers in Latin America, Asia-Pacific, Africa and all of the other coffee farming communities where we buy coffee.''

Glenn Prickett, senior vice president of Conservation International, said: 'By expanding purchases through its CAFE Practices programme and paying premium prices, Starbucks is providing farmers with an important incentive to grow coffee in an environmentally-friendly manner.

'This investment in coffee growing communities further helps build local infrastructure, such as schools and medical facilities, and contributes to the communities' long-term success.''

(reopens) In response to today's announcement by Starbucks, Oxfam said the coffee giant should end its resistance to attempts by Ethiopian farmers to trademark three coffee brands.

The aid agency said increasing the price paid to farmers for their coffee was only part of the solution to poverty, and trademarking the country's world-famous coffee brands would help growers work their way out of poverty.

Starbucks denies opposing the application to register the brands as trademarks.

Phil Bloomer, director of campaigns and policy at Oxfam, said: 'We recognise the efforts Starbucks has made in ensuring that there is an increasing ethical commitment in their purchasing strategy, but this latest PR offensive merely skirts around the real issue.

'Increasing the price paid per pound of coffee is only part of the solution. Trademarking coffee names would help level the playing field in international trade, and allow coffee farmers to trade on more equal terms with their suppliers.

'Starbucks had a genuine opportunity to lead the way within the industry, but instead it continues to oppose the innovative Ethiopian trademarking project.

'It has tied the hands of Ethiopian farmers who produce world-famous coffees, but who are prevented from taking full advantage of this to help work themselves out of poverty.''

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