Starbucks and Ethiopia verging on coffee trademark deal

Oxfam welcomed today's news that Starbucks and the Ethiopian Government have agreed in principle to sign a licensing, distribution and marketing agreement this month.

In October 2006, Oxfam launched an international campaign to encourage Starbucks to work with Ethiopia directly on the country's ownership of its specialty coffee names; Harar, Sidamo and Yirgacheffe.

Oxfam estimated last year that the trademarking initiative could earn Ethiopian coffee farmers up to an extra £47 million per year.

It left a bitter taste with many consumers that the growers aren’t capturing a greater share of the retail price.

Phil Bloomer, director of campaigns and policy at Oxfam, said: ‘In just seven months, more than 93,000 people worldwide have joined us in calling on Starbucks to sign this agreement. They will be joining us in waiting for the final agreement to be signed and in examining the details to make sure it offers the best possible deal for Ethiopia's coffee producers.’

‘This action by Starbucks could represent a huge step towards a real positive change for the 15 million Ethiopians who depend on coffee for their livelihood. The eyes of Africa will be on this agreement, which could even set a precedent for further deals beyond Ethiopia in the future.’

According to Ethiopia and Starbucks, the agreement is expected to be finalised and signed by both parties this month. More details regarding the content of the agreement will be available once it has been signed.