The Eagle has recently published two letters to the editor containing information about Starbucks that inaccurately describes our coffee purchasing practices. We are proud of the efforts Starbucks makes to purchase coffee in a socially responsible way, as well as our work with coffee farmers. For that reason, we are writing to correct the record.
Let me say at the outset that Starbucks respects and applauds the efforts of Pura Vida and other companies that are working sincerely to make a difference in the lives of coffee farmers. All efforts are valuable and are needed.
The reality is that while some students may see Starbucks' size as a negative factor, it is our size and our resources that enable us to have a larger impact in the very areas students are saying they care about: support for and fairness in dealings with coffee farmers and communities.
Starbucks supports Fair Trade CertifiedTM coffee in principle as well as in practice. We are one of the largest purchasers of Fair Trade Certified coffee in North America. In 2004, we bought 4.8 millions of pounds of Fair Trade coffee. These purchases impacted more than 42,000 fair-trade coffee farmers in nine countries around the world. This year, we expect to double our purchases of Fair Trade Certified coffee, with a goal to purchase 10 million pounds.
While we support fair trade, the reality is that only 3 percent of the world's coffee farmers are part of this certification system. Our business needs require us to buy coffee from other farmers, too. It is Starbucks' policy to pay prices to all farmers with the goal that it will enable them to make a profit. In fiscal year 2004, we paid an average of $1.20 per pound for coffee, which was 74 percent higher than the commodity market's price during the year.
Starbucks' scale and values also allow us to assist farmers in other ways that smaller companies cannot. Through 2005, Starbucks has committed to providing more than $6 million in funding through nonprofit organizations to provide coffee farmers with access to affordable credit. This credit makes a critical difference to tens of thousands of farmers worldwide each year, allowing them to invest in their farms, feed their families while their crops are growing and hold their crops for sale when the price is best, increasing their profits.
In fiscal year 2004, Starbucks provided more than $1.8 million for 35 social-development projects in coffee-growing communities. In Colombia, since 1999, Starbucks has provided more than $1.75 million to build and renovate homes for coffee-growing families, benefiting approximately 2,300 people. Through the project, Starbucks is also working with the farmers in the community to introduce sustainable farming practices that we hope will offer them a better option than migrating to big cities and abandoning their crops.
Starbucks also provides agricultural expertise to farmers through our Farmer Support Center in Costa Rica. Through the Center, experts collaborate with coffee farmers to improve quality, implement conservation efforts and increase their profitability.
In addition, Starbucks has developed a set of socially responsible buying practices in collaboration with Conservation International called C.A.F.E. Practices (Coffee and Farmer Equity Practices). These guidelines are designed to protect the environment, promote social development in coffee communities, and help ensure fair prices, wages and workers' rights. By 2007, Starbucks expects to purchase the majority of our coffee under C.A.F.E. Practices.
Those who would like more information on Starbucks' efforts in this and related areas can review our 2004 Corporate Social Responsibility Annual Report at http://www.starbucks.com/aboutus/ csrannualreport.asp.
Starbucks would be proud to have a store bearing our name on AU's campus. Profits and values can flourish side by side. Most importantly, that's our business model.
Sandra Taylor is senior vice president of corporate social responsibility at Starbucks Coffee Company.
