Message #72 From:
Stock News Bot Date: January 18, 2007 12:01:00 AM
SBUX News Starbucks Leads Global Coffee Industry in Paying Premium Prices for Sustainably-Sourced Coffee
SEATTLE--(BUSINESS WIRE)--Starbucks Coffee Company (NASDAQ:SBUX) announced today that the average
price per pound it paid for all its coffee increased from US$1.28 in
fiscal year 2005 to US$1.42 ($3.12 per kilogram) in fiscal year 2006.
During the same period the industry average “C”
(commodity) market price was $1.04 per pound ($2.28 per kilogram).
Additionally, Starbucks announced that the coffee the Company purchased
through its independently verified coffee sourcing and purchasing
guidelines, known as C.A.F.E. Practices, increased from 77 million
pounds (35 million kilograms) in fiscal year 2005 to 155 million pounds
(70 million kilograms) in fiscal 2006 – 53
percent of the total coffee purchased by the Company. This represents a
year-over-year increase of 100 percent.
“At Starbucks, our commitment to pay premium
prices for premium quality coffee has not wavered over the years,”
said Dub Hay, senior vice president, Coffee. “It’s
an approach that not only serves the short- and long-term economic
interests of coffee farmers and suppliers; it also serves our needs by
creating an incentive for farmers to improve quality and increase
production. That, in turn, contributes to a more sustainable supply of
the high-quality coffee we depend on to support our continued growth.”
Starbucks developed C.A.F.E. Practices (Coffee and Farmer Equity
Practices) in partnership with Conservation International and Scientific
Certification Systems to provide incentives for coffee to be cultivated
and processed in a sustainable manner.
Beyond paying premium prices for premium quality coffee, coffee
purchased under C.A.F.E. Practices guidelines meets criteria around
social responsibility in the farming community, economic transparency to
help ensure equitable payment to farmers for their crops, and
environmental leadership.
"Starbucks has shown real leadership by demonstrating how its supply
chain can be a powerful tool for conservation and sustainable
livelihoods," said Glenn Prickett, senior vice president for
Conservation International. "By expanding purchases through its C.A.F.E.
Practices program 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."
“C.A.F.E. Practices provides an opportunity to
coffee suppliers around the world to assess their socio-economic and
environmental standards while marketing their crop in a profitable and
transparent supply-chain,” said Eduardo A.
Esteve, managing director, Agroindustrias Unidas de Mexico, S.A. de C.V. “As
a farmer, every point gained in C.A.F.E. Practices is translated into
more competitiveness. I have no doubt it has helped me become a better
employer making my farm, Guadalupe Zaju, a farm that can attract field
workers.”
In addition to C.A.F.E. Practices-approved coffee, Starbucks purchased
coffee in fiscal year 2006 through other responsible environmental or
economic certification efforts. These included conservation (shade
grown) coffee (two million pounds or one percent of Starbucks total
coffee purchases), certified organic coffees (12 million pounds
or four percent of Starbucks total coffee purchases), and Fair Trade
Certified™ coffee (18 million pounds or
six percent of Starbucks total coffee purchases). Starbucks remains one
of the largest purchasers, roasters and distributors of Fair Trade
Certified™ coffee in North America.
Starbucks Coffee Company provides an uplifting experience that enriches
people’s lives one moment, one human being,
one extraordinary cup of coffee at a time. To share in the experience,
visit www.starbucks.com.
