Oxfam responded by saying that Starbucks did prompt the National Coffee Association (NCA), of which it is a leading member, to file an opposition to the applications, which is the reason the US Patent and Trademark Office (USPTO) gave for rejecting them. At a meeting held this past July at the Ethiopian Embassy, Embassy staff and advisers met with the NCA president to discuss a letter of protest filed against Ethiopia’s trademark applications. Ethiopian Embassy staff asked the NCA President what had prompted the NCA to file the opposition after more than year of silence on the issue. The NCA President responded that Starbucks had just brought it to the NCA's attention.
It is therefore disingenuous for Starbucks to claim they were not responsible for the application being blocked. Ethiopian Embassy staff and Ron Layton of Light Years IP, a Washington DC-based intellectual property rights organization that is helping to advise the Ethiopian government, have gone on record with this.
Starbucks has also claimed that its investment in social development projects and micro-finance initiatives in coffee growing regions has been recognized for its leadership within the industry.
While Starbucks has taken some positive initial strides in this area, Oxfam thinks the company can do better. As a company that prides itself in such efforts, it is unclear why Starbucks would oppose Ethiopia’s efforts to help its farmers realize a greater portion of the value their coffee commands on the international market.
Intellectual property ownership makes up a huge proportion of the total value of world trade but rich countries and businesses capture most of this. Ethiopia, the birthplace of coffee, and one of the poorest countries in the world, is trying to assert its rights and capture more value from its product. It should be helped, not hindered.
Oxfam continues to call on Starbucks to show leadership for other coffee companies by immediately recognizing Ethiopia's rights in this case and signing the licensing agreement that Ethiopia presented to the company in September, recognizing the country’s rightful ownership of its coffee names.
]]>The ICO is in the midst of renewing its operating charter, the International Coffee Agreement (ICA). Oxfam and other groups representing small-scale family coffee farmers say that the renewed charter will be vital in helping to level the playing field for millions of poor farming families around the world whose livelihoods are being destroyed because they can’t compete in the global market due to unequal terms.
As its September meetings begin today, the ICO will have an opportunity to consider recommendations from coffee producing and consuming countries that emphasize the need to create a more sustainable coffee sector.
“A more sustainable coffee supply chain benefits everyone in it –from the largest roasters to the 25 million small-scale coffee farmers and farmworkers struggling every day to make a living,” said Seth Petchers, the coffee lead for Oxfam’s Make Trade Fair campaign. “The ICO is hearing this message from member countries- now it’s time for action.”
The ICO is the only dedicated forum for discussing coffee-related matters at the international level, bringing together coffee-producing and consuming countries around one table. It could be the focal point for international cooperation to bring about a truly sustainable coffee economy.
World coffee prices plummeted in 1999, devastating coffee farming communities around the world. Despite recent improvements, the price continues to fluctuate and the crisis for coffee farmers persists. To make matters worse, they don’t have enough access to credit and information to plan and market their crops.
A paper released this year by Oxfam International and twelve allies (see below for full list) called Grounds for Change: Creating a Voice for Small Coffee Farmers and Farmworkers with the Next International Coffee Agreement, recommends the ICO:
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create systems so that all parties, including farmers, have access to relevant coffee sector information;
and facilitate coordinated, well-resourced responses to the crucial issues facing small-scale farmers including: technical assistance, risk management and access to credit.
To read Grounds for Change, please visit: www.maketradefair.org/ico.
]]>Earlier this month, Ethiopian farmer cooperatives, coffee exporters, and government officials met with American and Canadian coffee companies in Long Beach, California to talk more about the trademark and licensing initiative.
The historic meeting at the Specialty Coffee Association of America conference represented the next stage in dialogue between Ethiopians and North American roasters, which started in Addis Ababa this February. There, roasters committed to help bring their peers to the table and Ethiopians agreed to begin building the program's infrastructure. Much was accomplished in just three short months. Getachew Mengiste, director of the Ethiopian Intellectual Property Office, told a standing-room-only crowd in Long Beach about recently completed training workshops for staff from embassies, farmer cooperatives, and exporting companies.
Ethiopia launched its coffee trademark and licensing initiative to give farmers more control over their world renowned coffee brands, strengthen farmers' negotiating position, and ultimately help them capture a greater share of their coffee's value. At the conference in Long Beach, the Ethiopians used their time with roasters to discuss the best ways to work together to put the program's "nuts and bolts" into place.
"We are working together for a common cause," said Mengiste as he opened the gathering. "This initiative should meet the interests of farmers to ensure that they get benefits from their fine coffee. The interests of our roaster partners should also be met. The whole idea behind this initiative is to connect our coffee farmers with the roasters."
Attendees agreed on the key points for discussion, which included ways that the coffee brands would be used on packages and labeling, joint marketing promotion strategies, guaranteeing quality, and expanding the network of participating roasters. Tadesse Meskela, manager of Oxfam partner, the Oromia Coffee Farmers Cooperative Union, opened the floor for discussion. As he stood in front of the room, Meskela thanked all of the participants and gave special acknowledgement to the roasters who have already committed to the project by signing a licensing agreement.
For two hours, participants discussed ideas, challenges, and opportunities for moving the trademarking initiative forward. The spirit of the conversation was collaborative with roasters giving the Ethiopians many points to consider when they return home and begin implementation. Participants took on a shared sense of responsibility for carrying out their individual roles in the process. As Dean Cycon, owner of Dean's Beans Organic Coffee Company, one of the most recent companies to sign a licensing agreement with Ethiopia, said, "Whatever we're creating together we want to protect."
It will take a lot of hard work to ensure that the trademarking and licensing initiative creates real change for Ethiopia's poor coffee farmers. But the second meeting of Ethiopian stakeholders and North American roasters ended with participants ready to take up the challenge.
"We have said that the farmers have the right to own their coffee brands," said Ashenafi Argaw of the Sidama Coffee Farmers Cooperative Union. "Now all of the stakeholders need to work very hard together to bring them the benefits."
]]>“This is an important step for Ethiopia as it engages with coffee companies on its innovative trademarking initiative designed to help alleviate poverty,” said Raymond C. Offenheiser, president of Oxfam America. “This initiative will help create real change for the 15 million Ethiopians dependent on the country’s coffee sector.”
According to Ethiopia and Starbucks, the agreement is expected to be finalized and signed by both parties in May. More details regarding the content of the agreement will be available once it has been signed.
"Oxfam eagerly awaits the final agreement and long overdue recognition of these coffees as unique and valued products of Ethiopia's coffee farmers," continued Offenheiser.
In the meantime, Ethiopia’s trademarking project has continued to gain momentum. The licensing team heading the project has begun to roll out an implementation plan for the registered trademarks in Canada, the European Union, the United States and Japan. A marketing plan aimed at further raising the profile of the Sidamo, Harar and Yirgacheffe brands on the international market is also underway.
The goal of the trademarking initiative is to help Ethiopia’s coffee sector—including farmer cooperatives—earn more from its valuable coffee brands, increase its negotiation leverage through control of the marks, and ultimately increase the price received for its best coffees. Ethiopia will be able to protect the valuable reputation of its coffees and enable poor growers to capture a greater share of the retail price.
In October 2006, Oxfam launched an international public campaign to encourage Starbucks to engage with Ethiopia directly on the issue of the country’s ownership of its specialty coffee names. Over 93,000 supporters have called on Starbucks to sign a licensing agreement with Ethiopia.
]]>"One part was washed out by the landslides," cooperative member Lucas Izapo told us. "Before Stan, the land was thick with coffee plants, everything was covered with coffee plants. When the landslide came, it took the coffee bushes with it. The hill was left bald, and covered in rock.
"Now I am fixing up my land, little by little. But it's not going to take a year to fix it, it'll take three, four, or more years before this part is back to normal. Because it isn't easy to build walls. This year I planted living fences with Yucca and Bower Vine. And little by little I am going to make a stone wall, to protect the coffee from the rain that falls [each winter]."
The cooperative was able to support its members with the donation of new coffee plants to replace the older ones, organic fertilizer, and $62 for each member. They needed to make this investment to care for the plants they still had left.
They cooperative also repaired the channel that drains the coffee washing stations. This was essential to renew their fair trade certification; without this certification their income would drop even more.
Like other places in Guatemala, farmers in Solola lost much of their corn. Lucas said it has been difficult to feed his family of 10.
"I had to work even harder to sustain us, because I didn't have my harvest which was lost the year before. I lost 160 to 200 pounds from that corn harvest. So I had to plant tomato and onion and sell it to buy the corn that I used to grow for myself. Little by little I was able to buy the corn—100 pounds, another 100 pounds—because I grew these other crops."
]]>Recovering the coffee crop is not a quick endeavor. In the majority of cases it will be three or four years until the harvest is at its normal level. And cleaning up the destroyed plots of land also takes time. It is an additional task that the coffee growers had to undertake in the moments when they weren't tending to the crops spared by the storm.
The first cooperative we visited was ASUVIM, in the province of Quetzaltenango, where we spoke with the president of the cooperative, Daniel Balux. The principle problem this cooperative faced was that nearly 30 percent of its harvest was affected by black bean, a deformation of the coffee bean that cannot be seen when the coffee is harvested, but only once it is dried. It changes the color and the taste of the coffee, disqualifying it from the gourmet and fair trade markets.
Can you tell us about the black bean problem?
Actually, we detected it here at the mill. We saw that we had black beans, but we didn't think it was so extensive, we thought it was just the first beans. But as we continued with the harvest it was the same. It was the whole harvest. The coffee looked good as parchment coffee but if we look at them all—the ones with a different color, they are black beans. We can't say that our members brought in bad coffee, because the cherries looked good, they didn't even look a little rotten or anything like that. The coffee was good. You can't say to the people, look, bring us better coffee or chose it better—[but] of course when they cup this coffee the cuppers will say it is green coffee, coffee that didn't reach its full maturity. So the aid for the black bean was something necessary [to compensate for the low price]. So, what did we do after all this? Well, thanks to the help that came from you, at least the members got their normal price. At least we could say to them, 'Look, the coffee was shipped at this price, but we are going to help you a little bit and we are going to pay you this much.' The people saw that at least there was an effort behind all this."
In addition to this monetary compensation that was given to the members, what other actions did ASUVIM take to overcome the crisis?
Here 60 percent of what people earn comes from coffee. If there are problems with the coffee, there are problems in the families. Either there is little schooling, or people are unable to complete projects they had planned or there isn't much food. Here in ASUVIM we also helped out with corn. We gave each member 800 pounds of corn. Part of it we donated, the other part the members had to buy. Each family of six consumes about 1,600 pounds of corn per year. [They lost 80 percent of the harvest.] What happened with the 20 percent that they were left with? They ate it in January, maybe into February, but by March they had to buy corn. Then the problem is that when there is high demand for corn, the price rises. So we helped them with this, with 800 pounds. We think it's 50 percent of the corn they eat, we could now say that at least they had corn to eat.
The other damage we suffered as an organization is related to the landslide here next to the patio where we sun dry the coffee. With the rain, little by little, we were losing more of it. So we were faced with an emergency. Either we did something or our patio would collapse. And the more time that passed, the worse it was. So we received aid from Oxfam America because the construction is big. But it was necessary because if we lose the patio, it'd be an additional expense.. We are still constructing, but we are making the wall. We aren't doing something that is simply going to fall apart next year and then we would have to invest in it all over again. We want to invest, to spend and if that means chipping in ourselves, we do it.
]]>By seeking the right to control its most famous coffee trademarks—Sidamo, Harar and Yirgacheffe—Ethiopia aims to work with the worldwide coffee industry to build the value of its coffee ‘brands’ and give its farmers a greater share of the retail value of their coffees. Coffee is among the most valuable commodities in Ethiopia, one of the world’s poorest countries, and these rights could help 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.”
In mid-February, Starbucks 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, since that meeting, Starbucks has balked at signing a voluntary licensing agreement and has refused to engage in good-faith discussions with Ethiopia about the trademarking initiative.
Ethiopia has continued to garner support for this project, most recently from the deputy secretary-general of the twenty-member Common Market for Eastern and Southern Africa at the East Africa Fine Coffees Association meeting in Addis Ababa last month. Ethiopian farmers, in a recent statement from the Ethiopian Fine Coffee Farmers Cooperative Unions and Exporters, accused Starbucks of dodging the real issues and encouraged the coffee chain to sign the licensing agreement.
In a Valentine’s Day memo to staff leaked to the public in February, Starbucks Chairman Howard Schultz stated that changes that have come with rapid growth and success also, “have lead to the watering down of the Starbucks experience.” Earlier this month, Schultz told Fortune magazine that "Starbucks is the quintessential people-based business... Everything we do is about humanity."
“If Starbucks is seriously committed to humanity, it needs to change its position and agree to negotiate a licensing agreement with Ethiopia that respects its ownership of its unique coffee trademarks,” said Petchers. “Starbucks has retailed these Ethiopian coffees for as much as $26 a pound yet most Ethiopian coffee farmers struggle to survive on one dollar a day.”
At its Annual General Meeting today, Starbucks is celebrating growth of more than 20 percent in net revenues over the past year. Meanwhile, coffee farmers struggle to meet their most basic needs.
“Is this the best that a company that is all about humanity can do?” asked Petchers. “It’s time for Starbucks to allow Ethiopian coffee farmers to find their way out of poverty instead of continuing to stand in their way.”
]]>Billed as the first summit between the Ethiopians who produce the coffee and the US and Canadian companies that buy it, this week's meeting showcased real unity and support for Ethiopia's efforts. Ethiopia has asserted ownership of the names of its coffees so that it can increase the coffees' value, gain more leverage, and receive an equitable price in the market. Already some companies, such as Green Mountain Coffee Roasters, have agreed to work with Ethiopia on this initiative. Their representatives showed their support by attending the meeting.
"Now that the trademarking work is becoming fruitful, many in the specialty coffee market are happy with us and accept that we want to increase our negotiating power and ensure greater returns to small farmers," said Tadesse Meskela, manager of Oxfam partner, the Oromia Coffee Farmers Cooperative Union.
As the three-hour meeting unfolded, I was struck by the achievements already realized by the Ethiopians. It was clear that everyone in the room was ready to work together to help Ethiopian farmers get an equitable share of the coffees, which have sold for as much as $26 a pound in the US. The stakeholders and coffee companies left the meeting with a "To Do" list and a promise to meet again in the coming months.
It was a tremendous achievement for Oxfam's partners, three farmer cooperative unions, to sit side-by-side with private exporters, government representatives, and foreign coffee buyers, discussing ways to improve the livelihoods of Ethiopia's coffee farmers.
During the meeting, I had the opportunity to speak about the tremendous global support Ethiopia's efforts have garnered. Since October, more than 90,000 Oxfam supporters from around the world have voiced their solidarity for Ethiopia's initiative. Through their efforts, these supporters have sent a clear message that coffee companies must recognize the legitimate right of countries and farmers to use the names of their coffees and their unique reputations to compete in global markets and realize higher incomes.
While much attention has been paid to Starbucks's unwillingness to recognize this right, I left the meeting feeling inspired. The conversation has moved from whether Ethiopia has the rightful ownership of its coffee names to how the coffee industry should recognize those rights and act accordingly.
As Ashenafi Argaw of Oxfam partner, Sidama Coffee Farmers Cooperative Union, said, "Our farmers deserve a better price than they are getting right now. Let's plan and discuss ways to get them better benefits from the market."
]]>The current ICA expires in September 2007. Negotiations regarding the next ICA are an excellent opportunity to implement policies to advance international cooperation on the development of a more sustainable, participatory, and equitable coffee supply chain. Oxfam urges reforms along three general themes:
Following a traditional coffee ceremony featuring some of Ethiopia's finest coffees—Harar, Sidamo, and Yirgacheffe—the farmers said they wanted the opportunity to make more money off the coffees they cultivate, which command such high prices among consumers.
While Starbucks charges as much as $26 a pound for Ethiopian specialty coffees, Ethiopian coffee farmers get only 5-10 percent of that price. For this reason, Ethiopia has asked Starbucks to sign a trademark agreement that would give Ethiopia the ability to control the use of its coffee names, occupy a stronger negotiating position with foreign buyers, and capture a larger share of the market.
"Just because I'm a farmer, don't think that I don't understand what's happening in the global market," said Tadesse Terro, who traveled from Yirgacheffe to speak out. "I do listen to the radio and I know how much my coffee retails for overseas. The money I earn for my hard work does not come close."
More than 200 people came to the Sheraton hotel in Addis Ababa to attend the coffee ceremony. Government officials and diplomats joined community activists and farmers. Each person signed a petition asking Starbucks to honor its commitment to Ethiopian coffee farmers by recognizing the country's ownership of its coffee names.
One farmer, 85-year-old Gemede Robe, left his Abaya district hometown for the first time to attend the event. Unable to read and write, he signed the Starbucks petition with his fingerprint.
Robe became the face behind Ethiopia's trademark initiative late last year when Oxfam began using his photograph to publicize the campaign.
"Like any other human being, we Ethiopians hold our names very dear," Robe said. "If given the opportunity to speak with people at the big company (Starbucks), I would ask them why they're resisting us owning our coffee names. I am sure they know, as the whole world does, that our coffees are some of the best in the world. But why are they refusing to give us the recognition we deserve?"
Oxfam is part of a broad coalition calling on Starbucks to sign a trademark agreement with Ethiopia. More than 89,000 people in 70 countries have already joined the campaign. Earlier in December, activists from New Zealand to Scotland to the US demonstrated outside of Starbucks stores. The coffee ceremony in Addis Ababa represented the culmination of these global actions.
]]>After the ICO’s May meetings finished in London, ICO members acknowledged this week that it was important for small-scale family coffee farmers, who produce of the majority of the world’s coffee, to make a decent living. However, the ICO failed to come up with specific proposals to solve the ongoing economic crisis facing 25 million of these producers.
“The ICO is talking about addressing issues of environmental and social responsibility – but small farmer representation within the ICO is the only way to effectively address the economic inequities faced by small-scale family coffee farmers and farm workers in the supply chain,” said Dagoberto Suazo, head of the La Central coffee cooperative and Honduran delegate to the ICO.
“Farmers’ voice in these debates is critical in creating true economic sustainability in this sector – ensuring farmers can cover the cost of their coffee production and meet the essential necessities of life such as providing food, education and basic healthcare for their families.”
The ICO first began discussing the future of its operating charter, the International Coffee Agreement (ICA), in 2005. This meeting was a chance to make real progress in agreeing on a new charter that would make solving the world coffee crisis a real priority. However, talks continue to move at a snail’s pace.
“We are asking that small-scale family coffee farmers and farm workers have equal representation in the ICO’s advisory forums,” said Seth Petchers, coffee lead for Oxfam’s Make Trade Fair campaign. “Corporate interests are represented and have dedicated forums for discussion within the ICO – so it’s only reasonable that the people who grow most of the world’s coffee also have a say in the process.”
The lack of progress at these ICO proceedings was further reflected by the organization’s refusal to allow Oxfam to attend the meeting via temporary observer status. While Oxfam was allowed to make a presentation to the council, there was no opportunity for the organization to engage in critical dialogue.
Oxfam, an international development organization, works all over the world with civil society organizations representing coffee farming communities and their concerns. Oxfam is in a unique position to propose tangible, constructive solutions based on its relationships with these communities and organizations representing small coffee farmers.
At this week’s meetings, several ICO delegations submitted statements that emphasized the need to work toward a more sustainable coffee sector, information sharing within the supply chain, and access to credit for farmers– all issues that impact the ability for small coffee farmers to make a decent living and support the urgency for small-scale coffee farmer and farm worker voice within the ICO. However, no commitments were made on these topics.
For more information, contact Helen DaSilva at +617-331-2984 or hdasilva@oxfamamerica.org. To learn about Oxfam’s recommendations for the renewal of the ICA, read the Grounds for Change report at www.oxfamamerica.org/ico.
]]>Last September, coffee farmers from seven countries traveled to Salvador, Brazil, to add their voices to the World Coffee Conference, a special meeting of the International Coffee Organization. The ICO is an intergovernmental organization that brings together coffee-producing and coffee-consuming countries.
The World Coffee Conference kicked off Oxfam America's campaign to influence the next International Coffee Agreement. That agreement was a key issue at the ICO meeting in London this past week, but no specific proposals were forthcoming to solve those ongoing economic problems.
Oxfam has been working to make the agreement better reflect the needs and concerns of small-scale farmers who are struggling with the changing face of the coffee crisis.
"I wonder if the participants at the World Coffee Conference know what the coffee crisis has truly meant for producers," said Pradeep Nandipur of the Karnataka Growers Federation in India.
"In my region, farmers committed suicide because they could see no way out of their mounting debt. They had no way to repay it because their income was gone."
To survive these challenges, farmers and farmworkers said they require some stability, the kind that only comes through long-term capital investment, access to markets, and political representation.
When the international price of coffee dropped to historic lows in 2001, family farmers in places like Guatemala and Ethiopia fell into crisis.
With a glut of coffee on the market, many couldn't find buyers for their crops. Others couldn't pull in enough profits to pay off their farming expenses and feed their children.
Many farmers who survived the price drop were members of fair trade cooperatives. By agreeing to certain principles, such as transparency with members, democratic elections, and setting aside a percentage of profits for the community, cooperative members received a guaranteed minimum price for their crop.
"When the prices were low, fair trade was the best market we had," said Moise Coz, administrator of the IJATZ coop in Guatemala.
Farmers who were part of fair trade cooperatives said they made enough money to buy food, clothe and educate their children, and buy more farmland. Some coops even had enough money to buy mills to process their own coffee or to help local schools buy chalkboards and desks.
But even as farmers were counting the benefits of their fair trade premium, the crisis was changing. The price of coffee began to recover, creating competition between the coops and local middlemen representing importers or mega-roasters.
Some farmers now find themselves in an awkward position. They can sell their coffee to their cooperative for less and wait a few months for payment. Or they can sell to middlemen, called coyotes, willing to pay a higher up-front price.
The cooperatives try to remain competitive by using some of their savings to pay the difference between their price and the coyotes' price. But many fall short.
They need to use their savings to pay the administrative staff or electricity bill. In the end, the best thing cooperatives can do is try to remind farmers that what goes up must come down. When the international price drops, the cooperatives will be the only ones offering a price safety net and specialized training.
"We explain why they aren't receiving the money up front. We have costs to pay off," states Guillermo Campa, President of the IJATZ cooperative.
"We tell them that they need to think about the future. Think about the price dropping like it did in the past. If they work with fair trade, they can have a stable price."
But that argument doesn't always work. "People who live day to day can't just depend on what happened in the past," said Carlos Reynoso, manager of Manos Campesinas cooperative in Guatemala.
So how do coffee cooperatives respond? How do they get their members to sell them enough coffee so they can fulfill their contracts with importers and roasters? And how does the International Coffee Organization help?
Stronger cooperatives are more competitive in a fluctuating market. In order to get there, cooperatives need access to debt refinancing, low-interest loans for working capital, long-term capital investment, information, and markets. With a voice at the ICO, small-scale farmers and their cooperatives can advocate for these interests.
At the World Coffee Conference, Oxfam America and its partners presented coffee producing and consuming countries with a declaration articulating the needs of small-scale farmers and their cooperatives. The declaration calls for these issues to be addressed in the next International Coffee Agreement.
This is just one component of a strategy to give the world's 25 million coffee farmers a real chance to do what they've done for generations—and turn a profit that makes it all worthwhile.
"We need to take advantage of this historic opportunity," said Seth Petchers, Coffee Program Manager at Oxfam America. "We can use these negotiations to put measures in place that better address what these farmers face."
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