Fair Trade CertifiedSM prices
In the Fair Trade certification system, importers, roasters and retailers purchase coffee at favorable guaranteed prices from farmers who are registered with the Fairtrade Labelling Organizations International.
To purchase Fair Trade CertifiedSM coffee, Starbucks pays a minimum of $1.26 (U.S.) per pound ($2.77 per kilogram) for non-organic green arabica coffee and $1.41 per pound ($3.10 per kilogram) for organic green arabica coffee.
For all of its coffee, Starbucks pays premium prices that are substantially over and above the prevailing commodity-grade coffee price. In fiscal 2002, the commodity average price was $0.40-0.50 per pound. During that same time period, Starbucks paid an average verified price of $1.20 per pound, excluding freight, for green coffee purchased at outright prices.
Bringing Fair Trade CertifiedSM coffee to the world
Since forming an alliance with TransFair USA in April 2000, Starbucks has purchased nearly 2 million pounds of Fair Trade CertifiedSM coffee, including 1.1 million pounds in fiscal 2002. Our purchasess have increased steadily. Starbucks is licensed to sell Fair Trade CertifiedSM coffee in 17 countries, including Australia, Austria, Canada, China, Germany, Hong Kong, Japan, Korea, Malaysia, New Zealand, the Philippines, Spain, Switzerland, Taiwan, Thailand, the U.K. and the U.S.
Working with Fair Trade farmers
In July 2002, Starbucks, the Ford Foundation and Oxfam America announced a pilot project in collaboration with a large Fair Trade co-op in Oaxaca, Mexico. The goals of the project are to increase the supply of high-quality Fair Trade CertifiedSM coffee and enable the 16,000 participating farmers to earn premium prices for their crops.
Starbucks and the Ford Foundation, a philanthropic organization that works to reduce poverty and promote international cooperation, each contributed $125,000 for the first year of the pilot project.
Oxfam America, an organization dedicated to creating solutions to hunger, poverty and social injustice around the world, will work directly with farmers in the co-op on improvements to their post-harvest quality control techniques.
By providing farmers with tools to improve their skills, and thus the quality of their coffee, we hope to increase their opportunities for self-sufficiency and sustainability.